Siemens margin slips for third quarter; stock falls 5.06% in five sessions
Costs grew faster than revenue YoY, while other income accounted for 21.98% of pre-tax profit.
Filed 03 Jun 2026, 16:27 IST · after market close · Siemens Ltd (SIEMENS)
Key takeaways
- Consolidated operating margin fell 1.37 percentage points YoY to 9.61% as expenses grew 10.08%, faster than revenue at 8.42%.
- Consolidated net profit dropped 36.41% YoY despite a 3.42 percentage-point lower tax rate, with other income contributing 21.98% of pre-tax profit.
- The stock fell 5.06% five sessions after results, versus a 3.75% median absolute move across its last four result reactions.
Price around the results
Revenue growth did not translate into operating profit
Consolidated revenue grew 8.42% YoY, but operating profit fell 5.05% because expenses increased 10.08%. Sequentially, revenue rose 20.54% while expenses grew 22.44%, leaving operating profit up only 5.21%. The results were filed after market close on 3 June.
Margin has declined for three straight quarters
Operating margin narrowed 1.37 percentage points YoY and 1.40 percentage points QoQ as costs grew faster than revenue in both comparisons. The 9.61% margin marks a third consecutive quarterly decline from 12.00% in Q1FY26 through 11.93% and 11.01%. Interest expense also rose 513.04% YoY and 151.79% QoQ, adding pressure below operating profit.
Siemens trails the reported Industrials margin median
Siemens' 9.61% operating margin was 6.05 percentage points below the 15.66% median for 71 Industrials peers that had reported the quarter. It ranked 12th from the bottom, placing its margin among the weaker readings in the sector comparison.
Other income and tax rate softened the profit decline
Other income fell 33.80% YoY, but still represented 21.98% of pre-tax profit, making reported earnings meaningfully dependent on non-operating income. The tax rate fell 3.42 percentage points YoY and 2.10 percentage points QoQ, which partly cushioned the decline in pre-tax profit.
The post-results fall was weaker than Siemens' usual reaction
The stock declined 0.61% on the first session and 5.06% after five sessions, underperforming the market by 4.01% at the five-session mark. That reaction was larger than the 3.75% median absolute move across the last four results, when the stock rose three times and fell once.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,618 cr | ₹3,831 cr | +20.54% | +8.42% |
| Other income | ₹100 cr | ₹10 cr | +903.00% | -33.80% |
| Expenses | ₹4,174 cr | ₹3,409 cr | +22.44% | +10.08% |
| Operating profit | ₹444 cr | ₹422 cr | +5.21% | -5.05% |
| Operating margin (%) | 9.61% | 11.01% | — | — |
| Interest | ₹14 cr | ₹6 cr | +151.79% | +513.04% |
| Depreciation | ₹74 cr | ₹71 cr | +3.36% | +7.58% |
| Profit before tax | ₹456 cr | ₹355 cr | +28.57% | -16.75% |
| Tax | ₹101 cr | ₹86 cr | +17.42% | -27.89% |
| Net profit | ₹370 cr | ₹278 cr | +33.33% | -36.41% |
| EPS (₹) | ₹10.40 | ₹7.80 | +33.33% | -36.43% |
Operating margin of 9.61% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.61% | -0.66% |
| Next session | -0.24% | — |
| 5 sessions | -5.06% | -4.01% |
| 15 sessions | -2.20% | — |
| 30 sessions | -1.37% | — |
Volume on the results session was 0.55× its 20-day average.
What to watch
- Whether operating margin recovers from 9.61% after three consecutive quarterly declines.
- Whether other income remains near its 21.98% share of pre-tax profit.
- Whether interest expense reverses its 513.04% YoY increase.