The brokerage house Motilal Oswal has maintained a bullish call on Siemens Energy India, seeing scope for a 20% upside from current levels. The brokerage has kept Rs 3,800 as the target price. This is supported by expectations of strong demand in India’s power transmission network and ongoing industry-wide capital expenditure.
Let’s take a look at what the brokerage has to say of this stock and the rationale behind the target price –
Motilal Oswal on Siemens Energy India: A fresh push from India’s power grid expansion
According to the brokerage report, Siemens Energy India delivered a strong operating performance in the fourth quarter of the financial year 2025. Revenue touched Rs 2,600 crore, a 27% year-on-year rise, mainly due to activity picking up in the power transmission space. The company’s order book, as per the report, adds to this momentum, pointing to steady work pipelines.
However, the brokerage also noted that profit after tax came in lower than expected, mainly because “lower-than-expected other income resulted in a profit-after-tax miss.” Despite this gap, the core business trends appear steady, and the report suggests that the company could remain closely tied to India’s high-voltage transmission expansion.
Motilal Oswal on Siemens Energy India: Why transmission matter now?
India is preparing for a major investment cycle in its electricity network. The country is expected to spend nearly Rs 3 lakh crore on transmission and distribution between FY25 and FY30. A significant share of this money will go toward 400 kilovolt (kv) and 765 kv high-voltage lines.
The report highlighted that “we expect the company to benefit from a strong opportunity in the power transmission segment,” mainly because Siemens Energy India is among the few players capable of working on 765kv systems. This places the company in a position to tap large projects that often define long-term sector growth.
There is also a push at the state level. According to the brokerage report, initiatives linked to strengthening intra-state transmission networks could open up an additional Rs 12,000 crore worth of opportunities. The company is also aiming to expand its presence in high-voltage direct current (HVDC) systems with a focus on voltage source converter (VSC) technology.
Motilal Oswal on Siemens Energy India: Growth expectations over next two years
The brokerage estimates that the company’s revenue, earnings before interest, tax, depreciation and amortisation, and profit after tax (EBITDA) may grow at a healthy pace until the FY27. “We expect revenue, EBITDA (earnings before interest, tax, depreciation and amortisation) and PAT (profit after tax) CAGR of 30%, 39% and 41% over FY25-27,” said Motilal Oswal.
It also added that “we expect EBITDA margins of 21.1% and 21.8% for FY26 and FY27.” Much of this is expected to be driven by the transmission business, which the brokerage expects to grow at 43% compound annual growth rate (CAGR), while the power generation segment may track a more modest 15% CAGR, depending on how private companies resume industrial spending.