Siemens margin recovers sequentially but remains below last year's level
Revenue growth outpaced expenses sequentially, but other income still contributed 22.44% of pre-tax profit and the year-on-year margin comparison weakened.
Filed 06 Nov 2026, 15:48 IST · after market close · Siemens Ltd (SIEMENS)
Key takeaways
- Revenue grew 10.88% year on year, but expenses grew faster at 12.16%, narrowing operating margin by 1.01 percentage points.
- Net profit rose only 3.87% year on year despite a 1.46-percentage-point lower tax rate, as interest costs increased 180.00%.
- Operating margin recovered 1.78 percentage points sequentially to 10.92%, but remained 0.58 percentage points below the 11.50% median for 197 reported Industrials peers.
Price around the results
Sequential recovery follows a weak year-on-year margin comparison
Consolidated revenue grew 10.88% year on year, while operating profit increased only 1.44%, showing limited conversion of sales growth into operating earnings. Sequentially, revenue rose 21.65% and operating profit increased 45.24%, lifting operating margin by 1.78 percentage points to 10.92%. The margin had declined from 12.00% in Q1FY26 to 9.14% in Q1FY27 before this recovery.
Higher costs and interest restrained profit conversion
Year-on-year expenses grew 12.16%, faster than revenue at 10.88%, which reduced operating margin by 1.01 percentage points. Interest expense increased 180.00% year on year, while depreciation rose 24.86%, adding pressure below operating profit. The lower tax rate helped reported profit, falling 1.46 percentage points to 25.37%, but other income accounted for 22.44% of pre-tax profit, making earnings quality an important part of the result.
Margin remains below the reported Industrials peer median
Siemens' 10.92% operating margin was 0.58 percentage points below the 11.50% median among 197 Industrials companies that had reported the same quarter. This quarter's sequential improvement interrupts the decline seen across the previous four quarters, but the margin is still 1.01 percentage points below Q2FY26.
No market reaction yet after the post-close filing
The consolidated results were filed after market close, so there was no current-session stock reaction to assess. After the previous six results, the stock rose four times and fell twice, with a median absolute move of 3.09%, providing the relevant historical reaction range.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,734 cr | ₹4,714 cr | +21.65% | +10.88% |
| Other income | ₹152 cr | ₹117 cr | +29.68% | +23.86% |
| Expenses | ₹5,108 cr | ₹4,283 cr | +19.27% | +12.16% |
| Operating profit | ₹626 cr | ₹431 cr | +45.24% | +1.44% |
| Operating margin (%) | 10.92% | 9.14% | — | — |
| Interest | ₹13 cr | ₹7 cr | +77.46% | +180.00% |
| Depreciation | ₹89 cr | ₹78 cr | +14.62% | +24.86% |
| Profit before tax | ₹676 cr | ₹463 cr | +45.98% | +1.84% |
| Tax | ₹171 cr | ₹119 cr | +43.55% | -3.71% |
| Net profit | ₹504 cr | ₹2,143 cr | -76.47% | +3.87% |
| EPS (₹) | ₹14.16 | ₹60.18 | -76.47% | +3.89% |
Operating margin of 10.92% compares with a Industrials sector median of 11.50% across 197 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 10.92% after the sequential recovery.
- Whether expenses continue to grow slower than revenue, as they did sequentially at 19.27% versus 21.65%.
- Whether other income's 22.44% share of pre-tax profit declines.