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Siemens Ltd Q6 FY26 Analysis

Lesson 324/331 | Study Time: 20 Min

Course: Quarterly Result Updates & Analysis

Siemens Ltd Q6 FY26 Analysis

Record Order Inflows
& Infrastructure Boom vs. Margin Compression from Commodity Headwinds

Welcome back to our earnings breakdown series. This report
analyzes the Jan–Mar 2026 quarter (Q6 of the transitional FY26) for Siemens
Ltd., focusing on growth, profitability, risks and valuation.

Investment Snapshot

Parameter	Details
Company	Siemens Ltd (SIEMENS \| 500550)
CMP	₹3,568
Market Cap	~₹1,27,000 Cr
Sector	Capital Goods / Heavy Electrical Equipment
Quick Verdict	Strong order visibility; near-term margins impacted by commodity & currency headwinds.

The 'Wow' Factor

·
First 40 units of 9000 HP locomotives dispatched
from Dahod.

·
₹1,800 Cr export order for bogies, traction
motors and gearboxes.

·
Record order backlog of ₹45,033 Cr.

·
LVM business sold to Innomotics India for ₹2,200
Cr.

Operational KPI Table

Segment	Book-to-Bill	New Orders	Revenue Growth
Smart Infrastructure	1.15x	₹2,960 Cr	+14.5%
Mobility	3.37x	₹2,800 Cr	+12.7%
Digital Industries	0.84x	₹970 Cr	+14.5%
Total	1.46x	₹6,731 Cr	+14.6%

Financial Performance

Metric	Q6 FY26	Q2 FY26	YoY
Revenue	₹4,618 Cr	₹4,029 Cr	+14.6%
EBITDA	₹450 Cr	₹510 Cr	-11.5%
EBITDA Margin	9.7%	12.6%	-287 bps
PAT	₹355 Cr	₹393 Cr	-9.6%

Cost vs. Efficiency Analysis

Revenue growth remained strong, but EBITDA margins fell as
material costs increased from 69% to 74% of revenue due to higher silver,
copper and Euro-linked import costs. Price hikes have been initiated, but the
benefit is expected with a 3–4 month lag.

Peer Benchmarking

Compared with ABB India, Siemens currently has a softer
margin profile. Compared with Larsen & Toubro, Siemens continues to
demonstrate superior capital efficiency and a cleaner balance sheet.

Key Risks

·
Commodity & currency volatility

·
Fixed-price execution lag

·
Geopolitical supply-chain disruptions

Shareholding Pattern

Category	Observation
Promoter Holding	~75% (Stable)
Promoter Pledge	Nil
Comment	No major shareholding red flags

Forward Curve

Top-line growth is expected to remain strong, supported by
railway execution and data centre demand. Margins are expected to stay around
9.5–10.5% until pricing actions flow through.

Valuation Guardrails

The stock trades at roughly 75–80x trailing earnings versus
a historical median of ~55x, indicating premium valuations.

Strategic vs Tactical Outlook

Long-Term: Buy & Hold proxy for India's infrastructure
and automation.

Short-Term: Wait for better entry points due to premium valuation and margin
pressure.

Disclaimer

This analysis is for educational and informational purposes
only and does not constitute registered financial advice. Securities are
subject to market risks.

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Piyush Patel

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