Synopsis: Siemens Energy India shares in focus after Jefferies initiated a ‘Buy’ on with a ₹3,700 target with an 35% upide potential, citing strong Q3 margins, YoY order book rise, and capacity expansion. As it Expects 40% EPS CAGR over FY25–28E underscores robust growth, operational efficiency, and long-term shareholder value.
The shares of the Large-Cap company specializing in providing technologies, products, solutions, and services for the entire energy value chain, from power generation to transmission, are in focus following the global brokerage firm Jefferies’ views on its Q3 results.
With a market capitalization of Rs. 1,00,148.21 Crores on the Day’s Trade, the shares of Siemens Energy India Ltd rose upto 4.5 percent, reaching a high of Rs. 2870.00 compared to its previous close of Rs. 2738.90.
Q3 Performance
Income from operations rose 26 percent YoY from Rs. 1,517 crores in Q3FY25 to Rs. 1,911 crores in Q3FY26, and declined 28 percent QoQ from Rs. 2,646 crores in Q2FY26. Net profit increased 35 percent YoY from Rs. 232 crores to Rs. 313 crores, and declined 13 percent QoQ from Rs. 360 crores. Earnings per share (EPS) for the quarter stood at Rs. 8.79, from Rs. 10.10 in the previous quarter.
Brokerage Views on the Q3 Performance
Jefferies on Siemens Energy India Ltd
Leading Global Brokerage firm, Jefferies, initiated its ‘Buy’ rating on Siemens Energy India Ltd with a target of Rs. 3,700 on it with an upto 35 percent Upside Potential from yesterday’s close price.
Reason for the Target
Strong Q3 Performance: The company delivered a strong Q3 performance, with margins 455 bps above estimates at 24%, reflecting not only operational efficiency but also effective cost management and strong pricing power in its key segments.
Healthy Order Book: The order book rose 38% YoY, providing clear visibility for future revenue growth and signalling sustained demand across core business areas, reinforcing the company’s market leadership.
Capacity Expansion Approved: The board approved a Rs 2,100 crore greenfield investment to establish 30,000 MVA transformer capacity, aiming to double the current production capabilities and strengthen its ability to serve large-scale power T&D projects.
This expansion demonstrates strong confidence in the company’s growth trajectory, positioning it to capture emerging opportunities in the energy sector and meet increasing market demand efficiently.
Future Earnings Potential: The company expects a 40% EPS CAGR over FY25–28E, driven by ongoing power T&D capex, operating leverage, and expanding high-margin product lines, highlighting strong long-term profitability and shareholder value creation.
Siemens Energy India Limited (SEIL) is a prominent, publicly listed energy technology provider in India, incorporated in 2024 following a demerger from Siemens Ltd to focus specifically on the energy sector. The company is part of the global Siemens Energy group and covers the entire energy value chain, from power generation and transmission to storage.
It has a comprehensive portfolio of products, solutions, and services designed to strengthen and expand grid infrastructure, addressing the growing demand while ensuring grid stability amid the integration of renewable energy sources, supported by Project Management hubs.
The company provides power transmission solutions including AIS (up to 800 kV), GIS (up to 420 kV), transformers, reactors, and traction transformers, along with EPC services for high-voltage projects, FACTS, and HVDC VSC systems. It also offers lifecycle services such as modernization, retrofitting, maintenance, emergency support, and long-term service agreements.
In power generation, the company delivers services for large steam and gas turbines, generators, and industrial steam turbines (10 kW–250 MW), including modernization, digital control, and heat recovery solutions. Serving utilities, IPPs, EPC firms, and industrial clients, it focuses on efficiency, decarbonization, and sustainable energy through electrification, automation, digitalization, and hydrogen-based systems.
Operational performance has also improved significantly. Debtor days have decreased from 116 to 89.6, showing faster collection of receivables. Additionally, working capital requirements have dropped sharply from 133 days to 35.3 days, indicating more efficient management of inventory, receivables, and payables, which strengthens liquidity and cash flow.
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