Siemens Q1 results were marked by sustained margin pressure due to higher commodity inflation and forex volatility, while the company’s order inflows remained healthy.
The heavy electrical equipment maker on Tuesday reported a consolidated net profit of Rs 2,143.1 crore in the first quarter of FY27, boosted by profits from discontinued operations, which is Low Voltage Motors (LVM) business.Â
The company’s revenue from operations in Q1FY27 rose 14.8% to Rs 4,713.7 crore from Rs 4,107.7 crore, year-on-year (YoY). Order income increased by 16.5% in Q1 FY 2027.
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Siemens said its profitability during the June quarter was impacted due to volatility in commodity prices, foreign exchange and increase in material costs.
Analysts highlighted that continuing operating margin compression was a key negative from Siemens Q1 results, while order inflow growth remained both, solid and broad-based, unlike key peer.
Here’s what brokerages said on Siemens Q1 results:
Kotak Securities
- Maintain ‘Sell’ with Target Price of Rs 3,150
- Effect of externalities amplified, while ordering growth broad-based.
- PBT was down 25% YoY and segment margin turned in single digit across businesses.
- Gross margin improvement does not suggest a U-turn.
- Order inflow growth was both, solid and broad-based, unlike key peer.
HSBC
- Maintained ‘Hold’ with Target Price of Rs 3,540
- Strong performance on ordering and execution, while margins remain elusive.
- Profitability was under pressure amidst higher input costs and rupee depreciation.
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Citi
- Maintain ‘Neutral’ stance, with a Target Price of Rs 3,875
- Q1 orders were robust, but profitability remained weak
- Margins were weaker than expected due to greater than expected impact of commodity inflation and forex volatility.
- See strength in base order momentum.
- There is scope for margin expansion as likely price hike impact starts reflecting.
- Pecking order in diversified MNC industrials: Cummins India (Buy) > Siemens Ltd (Neutral) > ABB India (Sell)
JPMorgan
- Maintain ‘Underweight’ with a Target Price of Rs 3,334
- Margin pain was offset by decent order inflows.
- Demand conditions were good in Q1FY27 as shown by healthy order inflows.
- Sequential improvement in Digital Industries EBIT margin was positive.
- Continuing EBITDA margin compression is a key negative from Siemens Q1 results.
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