- Siemens Energy India’s transmission segment drove strong margin growth, rising 700bps YoY.
- The order backlog surged from INR 77 billion in FY23 to INR 162 billion in FY25, supporting robust execution.
ICICI Securities has released its latest research report on Siemens Energy India (SEI), highlighting a year of robust performance driven primarily by the transmission segment. Over the past two years, SEI has significantly expanded its margins, which have increased by 660 basis points to reach 19.3%. This improvement results from a combination of a favourable business mix, better pricing strategies, and a rising contribution from exports. Looking ahead, ICICI Securities expects the company’s margin to sustain at approximately 20%, reflecting continued operational efficiency and demand stability.
In particular, the transmission segment has delivered the most notable improvement, achieving a 700-basis-point increase in margin year-on-year. Meanwhile, the generation segment has remained resilient, supported by steady demand from core industrial customers. Consequently, the company has strengthened its position across both segments, balancing high-margin transmission projects with stable generation performance.
The order backlog has shown remarkable growth, rising from INR 77 billion in FY23 to INR 162 billion in FY25, following an increase of INR 111 billion in FY24. This expansion demonstrates strong market confidence in SEI’s capabilities and underlines the company’s capacity to secure high-value projects. Furthermore, ICICI Securities anticipates that transmission bidding activity will remain vigorous, estimated at INR 0.8–1 trillion annually over the next three years. This positive outlook suggests that SEI can maintain robust execution momentum, although growth in new orders is expected to normalise on an already elevated base.
Overall, ICICI Securities maintains a HOLD rating on Siemens Energy India. The research house values SEI at 65 times its estimated earnings for FY27, reflecting a balance between strong performance, operational improvements, and current market valuations. Investors are encouraged to consider SEI’s stable transmission and generation portfolio, along with its expanding backlog, when evaluating potential returns.
The report ultimately positions Siemens Energy India as a solid performer with reliable operational metrics, even as near-term growth in new orders is expected to moderate. Investors should weigh the company’s healthy margin trajectory and strategic positioning within the transmission and generation sectors when making investment decisions.