Siemens Ltd.Record Orders Offset by Margin Pressure

Siemens Ltd. delivered robust operational performance in Q4 FY26 despite significant margin headwinds from external factors.

New orders surged 33% year-on-year to ₹67.3 billion, driving record order backlog to ₹450 billion, up 9.3% annually. Revenue grew 14.6% to ₹46.2 billion with all three business segments achieving double-digit growth. However, EBITDA margin compressed 290 basis points to 9.7% as material costs jumped from 69% to 74% of revenue, driven by 160% surge in silver prices, 45% increase in copper costs, and 18% rupee depreciation against the euro.

Management emphasized that underlying margins remain robust with tight control on non-material costs, which increased only 0.8%. The company achieved key milestones including delivery of 40 locomotives with 90% localization and winning an ₹18 billion bogie export order. Management expressed confidence in sustained public and private capex momentum while monitoring inflation and interest rate impacts over the next 3-6 months. Price increases have been implemented with expected 3-4 month lag before margin recovery.