Q2 FY27 results analysis · November 06, 2026
Siemens Ltd Q2 FY27 Results Analysis: Orders Surge 38%, Margin Compresses 194 bps
+4.8%PAT year on year, Rs. 504.20 Cr
Source: Quarterly results filing (BSE)
Quick summary
Siemens Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 5,734.00 Cr (+17.00% YoY) and PAT growth of +4.80% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 5,734.00 Cr (+17.00% YoY) |
| PAT (Q2) | Rs. 504.20 Cr (+4.80% YoY) |
| EBITDA margin | 10.92% (-152 bps YoY) |
| EPS (Q2) | Rs. 14.16 (+4.80% YoY) |
Quarter Snapshot
Revenue accelerated to +17.0% YoY (+21.6% QoQ) with orders up 37.8% and a record Rs.47,034 cr backlog, but a 38.1% YoY materials-cost spike held EBITDA growth to 2.7% and PfO margin 194 bps below year-ago. Sequential margin recovery (+195 bps QoQ) and a 1.55x cash conversion show the price/cost squeeze easing, while Digital Industries missed its 6–8% margin band for a second quarter and Mobility margins slipped. Growth is on track; the margin bands are the swing factor for the next 2–4 quarters.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "revenue conversion looks in-line-to-ahead" | +17.0% YoY, +21.6% QoQ (Rs.5,734.0 cr) | Played out |
| Margins | "margin recovery is partial, not complete" vs Q1 7.6% | PfO margin 9.50% (Q1 7.55%, year-ago 11.44%); EBITDA margin 10.92% (Q1 9.14%) | Partially |
| DI margin band | "Q2 is the test of whether lagged price increases restore the band" | 5.03% — second consecutive sub-band print | Contradicted |
| Mobility growth | "double-digit going forward" test | +13.8% YoY | Played out |
| Mobility margin | ~10% benchmark | 7.46%, down from 11.11% year-ago and 10.16% Q1 | Contradicted |
| Orders/backlog | "Q2 new orders vs Q1's Rs.6,328 Cr… book-to-bill" | Rs.6,228 cr (+37.8%); backlog Rs.47,034 cr (+12.0%); book-to-bill 1.09 | Played out |
| Cash/working capital | "whether inventory and receivables build continues against the weak CFO base" | CFO Rs.1,311.1 cr (vs Rs.374.7 cr); inventories Rs.2,375.6 cr vs Rs.2,588.6 cr; receivables Rs.3,424.4 cr vs Rs.3,902.4 cr — improved | Partially |
| Watch items | LVM final gain; SRAPL milestones; C&S as 100% subsidiary; data-centre share | LVM gain still provisional (open); SRAPL advanced (NCLT Sep-2026 order); C&S completed (NCI nil); data-centre order share not disclosed — remains open for the call | Mixed |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Digital Industries EBIT margin 6–8% ("open-ended"; transfer-price driven) | guided at the FY25 Analyst Meet and reiterated through Q1 FY27 communications | 5.03% (segment result/revenue; DI standalone = consolidated) — 2nd consecutive sub-band print | Missed |
| Mobility revenue "Definitely double-digit going forward" over the next couple of years | Q6 FY26 earnings call (CFO) | +13.8% YoY consolidated | Met this quarter |
| Mobility margin expansion toward ~10% global Mobility margins | Q6 FY26 earnings call | 7.46% vs 11.11% year-ago, 10.16% Q1 — direction reversed | Missed |
| SI market growth +10%/yr (market framing, not company target) | FY25 Analyst Meet | SI revenue +20.4%; orders +37.8% — consistent | On Track |
| LVM divestment completion by June 2026 | Board guidance per prior-quarter notes | Completed 1-Jun-2026 | Met |
| Private CapEx 8–10% average growth in covered segments | Q6 FY26 earnings call | Not separately disclosed; orders +37.8% and CEO's "increase in private sector Capex" are supportive proxies — proxy | On Track |
Key Investment Insights
Key Positives
- Revenue grew 17.0% YoY and 21.6% QoQ to Rs.5,734.0 cr, with Smart Infrastructure +20.4% and Mobility +13.8% YoY
- New orders rose 37.8% YoY to Rs.6,228 cr; order backlog reached Rs.47,034 cr (+12.0% YoY) with book-to-bill of 1.09
- PfO margin recovered ~195 bps QoQ to 9.50% as lagged price increases flowed through; Smart Infrastructure margin rebuilt to 11.74% from 7.64% in Q1
- Continuing PAT grew 46.8% QoQ to Rs.504.2 cr with no exceptional items in the quarter
- H1 operating cash flow of Rs.1,311.1 cr (1.55x continuing PAT) vs Rs.374.7 cr in H1 FY26; FCF of Rs.1,034.5 cr
- LVM divestment completed 1-Jun-2026 at Rs.2,200 cr enterprise value, on schedule; Rs.2,090.5 cr disposal proceeds received
- Halol GST show-cause notice (Rs.34.83 cr) conclusively resolved in the company's favor (SC dismissed SLP, 20-Aug-2026)
Risk Factors
- Cost of materials consumed grew 38.1% YoY vs 17.0% revenue growth, leaving EBITDA up only 2.7% YoY and PAT up 4.8%
- PfO margin of 9.50% remains ~194 bps below the year-ago 11.44%; every segment's margin is below its year-ago level
- Digital Industries margin of 5.03% missed the guided 6–8% band for a second consecutive quarter
- Mobility margin fell to 7.46% from 11.11% year-ago and 10.16% in Q1, moving against management's ~10% margin path
- Inventory build continued (Rs.225.0 cr charge vs Rs.57.4 cr in Q1) and contract assets rose to Rs.3,359.6 cr from Rs.2,893.2 cr
- LVM sale gain of Rs.2,099 cr remains provisional with no final adjustment disclosed
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