Siemens margin falls to 9.14% as costs outpace revenue growth
Consolidated revenue grew 8.44% YoY, but expenses rose 11.95%; reported net profit jumped 406.16% even as PBT fell 18.74%.
Filed 11 Aug 2026, 14:22 IST · Siemens Ltd (SIEMENS)
Key takeaways
- Consolidated revenue grew 8.44% YoY, but expenses rose 11.95%, cutting operating margin by 2.86 percentage points.
- Reported net profit rose 406.16% YoY even as profit before tax fell 18.74%, with other income equal to 25.26% of PBT.
- The stock rose 2.47% after the results, below its 3.09% median absolute move across the last five result reactions.
Price around the results
Revenue grew, but operating profit contracted
Siemens Ltd's consolidated revenue increased 8.44% YoY and 2.08% QoQ, but operating profit declined 17.34% YoY and 2.91% QoQ. Expenses grew faster than revenue in both comparisons, rising 11.95% YoY and 2.61% QoQ. That cost mismatch reduced operating margin by 2.86 percentage points YoY and 0.47 percentage points QoQ.
Operating margin posts a fourth straight quarterly decline
Operating margin fell from 11.93% in Q2FY26 to 11.01% in Q3FY26, 9.61% in Q4FY26 and 9.14% in Q1FY27. Siemens's margin was 4.79 percentage points below the 13.93% median among 112 Industrials peers that had reported the quarter. The company ranked 28th from the bottom on this measure.
The reported net profit jump is not reflected in PBT
Reported consolidated net profit rose 406.16% YoY to Rs 2143.1 cr, while profit before tax declined 18.74% to Rs 462.8 cr. Other income accounted for 25.26% of PBT, making it a material part of the pre-tax result. The YoY tax-rate change was limited to 0.15 percentage points, so the reported net profit increase was not driven by a lower tax rate.
The share reaction was positive but within its usual range
The stock gained 2.47% on the results day, with a 3.23 times volume ratio. That move was smaller than the 3.09% median absolute reaction across the last five results, when the stock rose three times and fell twice. The initial response was therefore positive but not unusual for Siemens.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,714 cr | ₹4,618 cr | +2.08% | +8.44% |
| Other income | ₹117 cr | ₹100 cr | +16.55% | -5.80% |
| Expenses | ₹4,283 cr | ₹4,174 cr | +2.61% | +11.95% |
| Operating profit | ₹431 cr | ₹444 cr | -2.91% | -17.34% |
| Operating margin (%) | 9.14% | 9.61% | — | — |
| Interest | ₹7 cr | ₹14 cr | -49.65% | +44.90% |
| Depreciation | ₹78 cr | ₹74 cr | +5.69% | +9.70% |
| Profit before tax | ₹463 cr | ₹456 cr | +1.42% | -18.74% |
| Tax | ₹119 cr | ₹101 cr | +18.10% | -18.28% |
| Net profit | ₹2,143 cr | ₹370 cr | +478.59% | +406.16% |
| EPS (₹) | ₹60.18 | ₹10.40 | +478.65% | +406.14% |
Operating margin of 9.14% compares with a Industrials sector median of 13.93% across 112 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.47% | +2.93% |
Volume on the results session was 3.23× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 9.14%.
- Whether expenses continue to grow faster than revenue, as they did at 11.95% versus 8.44% YoY.
- The bridge between reported net profit of Rs 2143.1 cr and PBT of Rs 462.8 cr.