Brokerages remained cautious on Siemens despite acknowledging strong order inflows and improving visibility on private-sector capital expenditure.
In Q4FY26, the tech firm's net profit dropped 36.4% to Rs 370 crore from Rs 582 crore in the same quarter previous year. Revenue rose 14.6% to 4,618 crore for the quarter ended on March 31, 2026 from Rs 4,029 crore in the corresponding period last year. In terms of operations, EBITDA fell 0.2% to Rs 444 crore in the quarter under review against Rs 445 crore posted in Q4FY25. EBITDA margin stood at 9.6% in the fourth quarter versus 11.0% in the same period previous fiscal. The board approved the merger of Siemens Rail with the company.
Macquarie maintained its Neutral rating and raised optimism around the private capex cycle, though it highlighted a 150-basis-point decline in EBITDA margins due to commodity inflation and forex-related pressures. JPMorgan retained its Underweight stance while raising its target price to Rs 3,334 from Rs 2,795. Bank of America also maintained an Underperform rating, noting that strong order inflows masked an earnings miss.
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Macquarie on Siemens
- Macquarie maintains a Neutral rating on Siemens with a target price of Rs 3,510.
- The brokerage said operating performance was weak during the quarter, with EBITDA margins declining 150 basis points due to adverse commodity costs and forex movements.
- However, Macquarie sees the outlook improving, supported by increasing visibility of a recovery in private-sector capital expenditure.
JPMorgan on Siemens
- JPMorgan maintains an Underweight rating on Siemens and has raised its target price to Rs 3,334 from Rs 2,795.
- The brokerage described Q4 as weak and believes current valuations remain expensive for a business delivering mid-teen growth.
- Margins were impacted by higher commodity prices and adverse currency movements.
- Within segments, Smart Infrastructure margins were affected by commodity headwinds, while Digital Industries faced pressure from currency depreciation.
BofA on Siemens
- BofA maintains an Underperform rating on Siemens and has marginally raised its target price to Rs 2,980 from Rs 2,960.
- The brokerage said strong order inflows masked an earnings miss during the quarter.
- Commodity inflation and currency headwinds weighed on margins, resulting in a weaker-than-expected performance.
- While execution and order momentum are expected to remain robust, BofA believes near-term commodity inflation could continue to suppress earnings growth.
- Given the current valuation, the brokerage views the risk-reward as unfavourable.
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