Siemens Energy shares witnessed their biggest single-day surge on record, jumping as much as 13% to hit an intraday high of ₹3,664.30 on the National Stock Exchange (NSE) on Friday, August 7. This represents the company's biggest single-day gain ever since it began trading as a demerged entity from Siemens Ltd., in June last year. On the BSE, shares climbed as much as 12.7% amid spike in trading activity, with trading volumes jumping by 6.3 times to 26.42 lakh shares on the NSE compared with an average volume of 4.2 lakh shares. As of 10:21 am, Siemens Energy shares traded 12.7% higher at ₹3,664.3, outperforming the NIFTY NEXT 50 index which was up 0.2%. The exceptional market response came after the company announced exceptional Q3 FY2026 results, with consolidated net profit surging 67.68% year-on-year to ₹441 crore from ₹263 crore in the same period last year, which was 28.95% above the CNBC-TV18 poll of ₹342 crore. Revenue from operations advanced 39.29% to ₹2,485 crore from ₹1,784 crore in the year-ago period, which was 9.76% above Street expectations of ₹2,264 crore. The company's EBITDA increased 72.34% to ₹585.6 crore from ₹339.8 crore, beating Street estimates of ₹455 crore, with EBITDA margin expanding to 23.5% from 19.05% in the year-ago period.
The company's order backlog at the end of June quarter rose 16.4% to ₹19,331 crore from ₹16,601 crore in the corresponding period last year, according to the latest results. The robust order book growth reflects strong demand for the company's power transmission and energy infrastructure solutions. Power transmission led order growth with inflows rising 42.01% year-on-year to ₹1,386 crore, while power generation order inflows increased 36.01% year-on-year to ₹1,099 crore. The company's order backlog provides strong revenue visibility for future quarters and demonstrates the resilience of the business model. Earnings per share (EPS) improved to ₹12.38 in the June 2026 quarter, compared with ₹7.38 in the same period last year, reflecting the company's enhanced profitability. The market response underscores investor optimism about the company's ability to capitalize on India's expanding renewable energy capacity and infrastructure development needs.
The company reported strong operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 72.34% to ₹585.6 crore and its EBITDA margin improved by 4.4 percentage points to 23.5%. As per the company's press release, profit from operations (%) also improved by 430 basis points year-on-year to 21.9%, primarily driven by better operating leverage, higher export contributions, and disciplined order execution. Revenue witnessed solid growth primarily supported by robust order backlog and execution, with the company noting that profit from operations improvement was primarily driven by better operating leverage, higher export contributions, and disciplined order execution. The performance demonstrates the resilience of the company's business model and disciplined execution strategy, with operating margin expanding significantly to 21.9% from 17.6% a year earlier, indicating improved operating leverage, better execution and a favourable business mix.
On the segmental front, revenue from the power transmission business jumped 42.01% YoY to ₹1,386 crore, while the power generation segment reported a 36.01% YoY rise in revenue to ₹1,099 crore during the quarter. Power transmission EBIT margin expanded to 21.57% from 18.7% in the year-ago period, while power generation EBIT margin improved to 22.29% from 16.21% in the previous fiscal. Profit before tax (PBT) climbed 68.58% YoY to ₹593.4 crore, while operating profit (EBIT) surged 73.6% to ₹545 crore from ₹314 crore a year earlier. Managing Director and CEO Guilherme Mendonca highlighted India's rapidly expanding renewable energy capacity as a key growth driver, noting that India added more than 30 GW of renewable energy capacity during the first half of calendar year 2026. According to Mendonca, these structural trends are increasing the need for stronger, smarter and more flexible energy infrastructure, positioning Siemens Energy India to benefit through its grid technologies, grid flexibilisation solutions and advanced power generation portfolio.
Nuvama Institutional Equities maintained a 'Buy' rating on stock supported by its differentiated STATCOM and GIS heavy backlog and rising exports, raising FY26E and FY27E EPS estimates by 12% and 3% respectively on stronger execution and margins. The brokerage expects the company's EBITDA margin to be 22.5%, 22.0% and 22.3% for FY26, FY27 and FY28. Key variables to watch over the next 12-24 months include the timely execution of backlog and commissioning of Kalwa/greenfield transformer and switchgear capacity, maintaining margins despite industry capacity additions, and the pace of VSC-HVDC adoption in India. The company's strong order book of ₹19,300 crore and consistent execution across power transmission and generation segments position it well for continued growth in India's expanding energy infrastructure market. Motilal Oswal expects Siemens Energy India to benefit from long-term opportunities in renewable energy integration, data centres, and industrial electrification, with the brokerage revising its FY26 earnings estimates upward by 7% while retaining its Buy recommendation with a revised target price of ₹4,100, valuing the stock at 55 times two-year forward earnings.
