Siemens Energy India transmission backlog and transformer capacity underpin growth

Investment View and Valuation

ICICI Direct Research's August 7, 2026 result update on Siemens Energy India Ltd. remains positive on the company's execution during a structural transmission capital-expenditure cycle. The broker retains a BUY recommendation and values the company at 70 times FY28E EPS to derive a target price of Rs 4,600 per share, compared with the CMP of Rs 3,650.

ICICI Direct expects revenue and PAT to grow at CAGRs of 24.6 per cent and 28.5 per cent, respectively, over FY25 to FY28E.

Strong Q3FY26 Operating Performance

Siemens Energy India reported strong Q3FY26 operating performance. Revenue from operations rose 39.3 per cent year on year to Rs 2,486 crore, EBITDA increased 72.1 per cent to Rs 586 crore and EBITDA margin expanded by 449 basis points year on year to 23.6 per cent. PAT grew 67.8 per cent to Rs 441 crore, while net margin improved by 302 basis points to 17.7 per cent.

Power Transmission revenue increased 42.0 per cent year on year to Rs 1,386 crore, representing 56 per cent of quarterly revenue. Power Generation revenue rose 36.0 per cent to Rs 1,099 crore, or 44 per cent of revenue. In 9MFY26, the Power Transmission and Power Generation portfolios contributed 55.8 per cent and 44.2 per cent, respectively, to total revenue.

Order Backlog and Revenue Visibility

The investment case is supported by a Rs 19,331 crore order backlog, up 16.4 per cent year on year, which ICICI Direct views as providing multi-year revenue visibility. Quarterly order inflow was about Rs 3,294 crore, led primarily by Power Transmission.

Orders secured during the quarter included 420 kV GIS products and substations for a large solar park, 400 kV GIS substations for grid strengthening, and plus or minus 300 MVAr STATCOM projects supporting grid stability and renewable integration.

Power Generation secured industrial steam turbine supply orders, waste-heat-recovery projects of three times 45 MW for the metals sector, and an international steam turbine service order. ICICI Direct expects annual order inflow of about Rs 14,500 crore in FY26 and Rs 35,000 crore to Rs 36,000 crore over FY27E to FY28E.

Strategic Positioning and Capacity Expansion

The broker highlights Siemens Energy India's positions in power transformers, GIS substations, STATCOMs, HVDC and grid automation as key ways to participate in renewable integration, grid modernisation, industrial electrification and AI-driven data-centre investments.

The company has approved a Rs 2,060 crore greenfield capital-expenditure programme, funded entirely through internal accruals, for a 30,000 MVA power-transformer manufacturing facility. Phased commissioning is expected between 2030 and 2032. The facility is intended to expand domestic and export capacity, strengthen localisation and address transmission-equipment demand.

Financial Forecasts

Key Risks

• A slowdown in domestic or global capital expenditure.
• An increase in commodity prices.