Siemens shares rise 3% despite Q2 profit fall; what's driving the gains?

Siemens shares gained 3 per cent as analysts remained positive after the September quarter topline beat the street's estimates, even as profit fell

Shares of Siemens Ltd. rose over 3 per cent on Monday as analysts remained positive after the September quarter topline beat the street's estimates despite a profit decline.  

 

The heavy electrical equipment maker's stock rose as much as 3.31 per cent during the day to ₹3,186.3 per share, the biggest intraday rise since October 6 this year. The stock pared gains to trade 2.3 per cent higher at ₹3,156 apiece, compared to a 0.23 per cent advance in Nifty 50 as of 10:00 AM. 

 

Shares of the company rose for the fourth straight session and currently trade at 8.9 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 7 per cent this year, compared to a 9.8 per cent advance in the benchmark Nifty 50. Siemens has a total market capitalisation of ₹1.12 trillion. 

 

Siemens Q2 results 

Siemens has reported over 7 per cent year-on-year (y-o-y) decline in consolidated net profit to ₹485 crore for the quarter ended September 30, 2025. However, the company saw its revenue from operations grow 16 per cent to ₹5,171 crore during the quarter under review from ₹4,457 crore in the year-ago period.

 

"We delivered a robust performance this quarter, with a surge in revenue, driven by strong performance in our mobility and smart infrastructure businesses, while digital Industries volumes were impacted due to a lower reach in the order backlog from the previous year and muted private sector capex," managing director and chief executive officer, Sunil Mathur, said.  CATCH STOCK MARKET LIVE UPDATES TODAY

Analysts on Siemens earnings

Siemens's topline exceeded estimates by 8 per cent, though the Ebitda beat was a modest 5 per cent due to demerger-related costs, according to JM Financial. The brokerage said profit after tax was ahead of expectations by just 2 per cent, as higher tax outgo and lower other income weighed on the bottom line.

 

JM Financial added that order inflows remained strong at 10 per cent, outpacing peer ABB India, but still missed its estimate by 5 per cent. The firm resumed coverage with an 'Add' rating, noting that margin challenges persist in the Digital Industries segment.

 

Siemens reported a revenue beat in the latest quarter, though profitability was slightly below expectations, according to Motilal Oswal. The brokerage said weaker-than-expected margins prompted it to trim future margin assumptions and roll forward its target price to ₹3,350. 

 

Motilal Oswal reiterated its 'Neutral' rating, noting that it is awaiting a broad-based scale-up in order to increase inflows and execution, even as its estimates already factor in margin improvements across segments. The brokerage expects the smart infrastructure business to sustain its growth momentum, with gradual improvements in the digital industries and mobility segments.

 

Siemens has steadily reinvented its business model by remaining agile and shifting from a core industrial products company to a technology-focused one, aligned with investment needs across industry, infrastructure and transportation, according to Antique Stock Broking. The brokerage said Siemens is well-positioned to benefit from the ongoing capital expenditure cycle.