Siemens Energy India Ltd (SEIL) has announced a robust 36.34% increase in net profit for the quarter ended March 2025, reaching ₹246.1 crore. This impressive growth is primarily attributed to strong income from the power transmission and generation segments. In the corresponding quarter of the previous year, the company had reported a net profit of ₹180.5 crore.

The company, which follows an October to September financial year cycle, saw its total income rise to ₹1,893.9 crore in the March quarter, compared to ₹1,196.8 crore in the same period last year. Revenues from the transmission sector increased to ₹1,013.8 crore from ₹604.9 crore, while revenue from the generation segment grew to ₹865.7 crore from ₹591.7 crore. However, expenses also increased to ₹1,548.6 crore from ₹952.4 crore, driven by higher costs of materials consumed, project buyouts, and other direct costs.

For the six months ended March 2025, the company's profit more than doubled to ₹477.8 crore from ₹180.5 crore in the previous year. This strong performance underscores the company's growth trajectory and its ability to capitalize on favorable market trends.

Demerger and Market Debut

A significant development for Siemens Energy India was its listing on the stock exchanges on June 19, 2025, following the demerger of the energy business from Siemens Ltd. The demerger, which was approved in December 2023, aimed to allow both businesses to operate independently and create better value for investors. As part of the demerger, shareholders of Siemens Ltd received one share of SEIL for every share they held.

The company's shares listed at ₹2,840 on the National Stock Exchange (NSE) and ₹2,850 on the Bombay Stock Exchange (BSE). Following the listing, the stock hit the 5% upper circuit on both exchanges, demonstrating strong investor confidence. With a market capitalization of over ₹90,000 crore, Siemens Energy India has emerged as the largest listed pure-play power transmission and distribution (T&D) company in India.

Management Commentary and Future Outlook

Guilherme Mendonca, Managing Director and CEO of Siemens Energy India, expressed optimism about the company's future, stating, "With this listing, we reaffirm our long-standing commitment to India's energy future. As India advances toward becoming a USD 7 trillion economy, a strong and resilient energy system will be essential. SEIL, with its dedicated team, is ready to support this important journey for India and its people".

Analysts anticipate that Siemens Energy India will be a key beneficiary of the increasing investments in India's power transmission and distribution sector. Jefferies, a brokerage firm, projects a compound annual growth rate (CAGR) of 40% in the company's earnings between FY24 and FY27. Motilal Oswal, another brokerage house, expects a revenue and profit after tax (PAT) CAGR of 25% and 31%, respectively, over FY25-27, with Ebitda margin expanding to 21.4% by FY27.

Growth Drivers and Expansion Plans

Siemens Energy India has a strong order book, which provides visibility for future earnings. As of March 2025, the company's total order book stood at ₹15,100 crore, more than twice the revenue it earned last year. In the first five months of FY25, the company received ₹5,100 crore in new orders, which is already 60% of what it achieved in the entire FY24.

The company is also investing ₹460 crore to double its transformer-making capacity, indicating its confidence in sustained demand growth. Furthermore, the Indian government's expected investment of ₹1.5 lakh crore in T&D projects in FY25, nearly four times more than last year, presents significant opportunities for Siemens Energy India.

Global Performance

Siemens Energy AG, the parent company, reported a 22.7% increase in second-quarter profit, driven by strong gas services and grid demand, with its order book nearing €133 billion. For fiscal year 2025, Siemens Energy expects revenue to grow by 13% to 15% and anticipates a profit margin before special items between 4% and 6%.