Siemens Q1 FY27 Results (NSE: SIEMENS)
Signal: Margin pressure
The read
The operating trajectory weakened despite 8.4% revenue growth: consolidated EBITDA fell 15.1% YoY to 5479 million and EBITDA margin compressed to 11.6% from 15.5%, while the 21431 million PAT and ₹60.18 EPS were non-recurring in substance because the LVM sale contributed a 20990 million gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,713.7 Cr | 8.4% | 2.1% |
| EBIT | ₹469.9 Cr | -18.2% | |
| Net profit | ₹2,143 Cr | 406.7% | |
| EPS | ₹60.18 | 406.1% | |
| EBIT margin | 11.6% |
P&L walk
Revenue increased 8.4% YoY to 47137 million, but gross margin compressed by approximately 650bps and EBITDA fell 15.1% to 5479 million; PAT of 21431 million was driven by the 20990 million LVM disposal gain.
Segments
Mobility was the main operating bright spot, with segment result rising 199.4% YoY to 948 million, while Smart Infrastructure remained the largest business but its result fell 37.0% to 2010 million and Digital Industries result fell 40.3% to 589 million despite 24.9% revenue growth.
Key positives
- Revenue rose 8.4% YoY to 47137 million, led by Digital Industries revenue growth of 24.9% to 11440 million and Mobility revenue growth of 12.8% to 9329 million.
- Mobility segment result increased 199.4% YoY to 948 million, indicating a material improvement in that operating unit.
- Segment assets increased 22.7% YoY to 137393 million while depreciation rose 13.7% to 780 million, a clean asset-base cross-check.
Key concerns
- Consolidated gross margin compressed approximately 650bps YoY to 24.7% as raw materials and direct costs reached 75.3% of revenue versus 68.8% a year earlier.
- EBITDA declined 15.1% YoY to 5479 million and margin fell approximately 390bps to 11.6%, showing operating earnings deterioration beneath the revenue growth.
- Smart Infrastructure segment result fell 37.0% YoY to 2010 million and Digital Industries result fell 40.3% to 589 million despite Digital Industries revenue growth of 24.9%.
- The continuing-operations PAT was 3434 million versus reported PAT of 21431 million, making the headline profit increase heavily dependent on the 20990 million LVM disposal gain.
Earnings quality: includes non-operating other income
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