Synopsis: This industry stock is in focus after it sold its LVM segment to Innomotics Ltd for an enterprise value of Rs 2,200 crore; it only contributed around 4.5% of the company’s total revenue. Let us read about the entire deal and what it means for the company.
The shares of this company, which offers products and integrated solutions for industrial applications for manufacturing industries, drives for process industries and intelligent infrastructure, were in the news following the announcement by the company to sell one of its particular segments for about Rs 2,200.
With a market cap of Rs 1,12,035 crore, the shares of Siemens Ltd fell 2.4 per cent, reaching a low of Rs 3126.30 in today’s trading session when compared to its previous day’s closing price of Rs 3204.70. The shares are trading at a PE of 66.4, whereas the industry PE is 44.1, and have given a return of 295% over the last 5 years.
About the sale of the LVM segment.
Siemens Limited has decided to sell its Low Voltage Motors (LVM) business to Innomotics India Private Limited for Rs 2,200 crore through a slump sale, marking an important portfolio shift for the company. The business being sold includes low-voltage AC motors, geared motors and related service operations, and it contributed only 4.5% of Siemens’ revenue while carrying a negative net capital employed of Rs 138 crore as per Q2 FY26 figures.
For the 12 months ending September 2025, the LVM business generated Rs 967 crore in revenue and Rs 35 crore in profit, making it a relatively small part of Siemens’ overall operations. The agreement was signed on 8 December 2025, and the transaction is expected to close within 6–8 months, subject to regulatory approvals.
The decision to sell stems from major changes at the global level. Siemens AG had earlier sold Innomotics GmbH, the global motors and drives company, to KPS Capital Partners, transferring all associated intellectual property with it. As a result, Siemens Limited no longer owned the IP needed to run the LVM business independently and relied on Innomotics for design, manufacturing and technical support under existing ADA and TCLA agreements.
Over time, the LVM business had effectively become a sales-focused unit, with nearly 97% of its revenue coming from contract-manufactured products designed by Innomotics. With limited synergies, declining profitability and increasing dependence on an external IP owner, the board concluded that selling the business to Innomotics was the most practical and suitable option.
This divestment allows Siemens to concentrate more sharply on its core strengths across industry, infrastructure and mobility, where the company sees greater technological depth and stronger long-term opportunities. By exiting a low-synergy business, Siemens aims to optimise its portfolio, strengthen financial flexibility and stay focused on digital and sustainability-driven solutions.
The move also ensures continuity for customers and employees, as the business shifts to an entity already closely connected to its operations. Overall, the sale reflects Siemens’ strategic effort to streamline its operations and reinforce its position as a leading technology company.
Financials and more.
The revenue from operations is at Rs 5,171 crore in Q2 FY26 versus Rs 4,457 crore in Q2 FY25, which is an increase of about 16 per cent YoY. However, the net profit also decreased from Rs 831 crore in Q2 FY25 to Rs 485 crore in Q2 FY26.
Siemens Limited is a technology company that plays a major role across industry, infrastructure, digital transformation, transport, and the transmission and generation of electrical power. As the flagship listed company of Siemens AG in India, it operates with a business structure designed to help industries improve efficiency, quality, flexibility and speed.
With its wide-ranging portfolio, market-oriented organisation, global technology leadership and strong local competence, Siemens is well positioned to partner with the country in driving sustainable growth.
Written by Leon Mendonca.
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