At present, India’s per capita demand for electricity is less than half of the global average. But it is increasing at a breathtaking pace. As per studies, within the next decade, the same might just double.
To keep up with the growing demand, the Indian power sector is also increasing its generation capacity rapidly, and that too, keeping sustainability in mind.
As of September 2025, the total installed capacity stood at around 500 Gigawatt (GW), which is projected to double by 2032. Out of the total projected capacity, around 70% of the power will come from renewable sources, which is currently around 50% of the total capacity.
As India is all geared up for becoming energy independent and achieving the Net Zero target by 2070, power sector companies have a lot of opportunities in the pipeline.
And one such power giant, which has been in the business for more than a century but only got listed on the stock exchange last year, is Siemens Energy India Limited.
In this article, we will explore this energy giant and try to figure out how it is positioned in India’s power play.
Siemens Energy India Limited: Serving the Energy Sector For 100+ Years
Siemens Energy India Ltd. is engaged in both power generation and transmission businesses.
Its power transmission business offers products such as air-insulated switchgears, power transformers, gas-insulated switchgears, reactors, and traction transformers. The company also offers Engineering, procurement, and construction (EPC) solutions for different power projects, grid stabilization technologies, and other related solutions.
Apart from products and solutions, this business segment offers end-to-end lifecycle support services for high-voltage assets, too.
Under the power generation segment, Siemens Energy offers large gas and steam turbines, smaller, modular gas and steam turbines for central and distributed gas-fired power generation plants, respectively. Along with these turbines, the company offers operation and management solutions to the power-producing companies, and services as well.
Siemens Limited, which is the parent company of Siemens Energy India Limited, is a business conglomerate with over 150 years of experience. The company is engaged in transport, infrastructure, energy transmission, and power generation.
Siemens Energy was formed in February 2024 as a wholly owned subsidiary of Siemens Ltd. to take care of the energy segment. In May 2024, the company’s board decided to demerge the energy business, and the company got listed on BSE and NSE in June 2025.
So, the company might be new on the stock exchange, but it holds more than a century of experience in catering to the energy sector.
Leading the Market
Siemens Energy manufactured more than 55% of the large steam turbines, which are used across different power generation plants across the country. The company also holds around 25% of the market share in the gas turbine segment.
In the power transmission space, Siemens Energy caters to around 30% of the high-voltage direct current (HVDC) transmission in India.
A 49% rise in the Order
During FY25, Siemens Energy witnessed a massive surge in its orders. The company received orders worth ₹13,110 crore during the fiscal year, compared to orders worth ₹8,800 crore received in FY24, logging a 49% YoY growth.
The power transmission segment witnessed 76% YoY growth in its orders to ₹8,430 crore from ₹4,800 crore of orders received in FY24. The majority of the orders came from the demand surge for switchgears and transformers.
On the other hand, the power generation witnessed a 17% YoY growth in its order value to ₹4,680 crore from ₹4,000 crore in FY24. Major orders for large gas turbines boosted the overall orders.
(Note: Siemens follows October-September Financial Year – So here FY25 means October 1, 2024, to 30 September 2025.)
A Well Diversified Business
Siemens Energy’s generation and transmission businesses contribute almost equally to the revenue of the company.
For instance, in FY24, transmission business contributed 48% of the total revenue for the fiscal, while 52% came from generation business.
In FY25, this changed a bit, and 46% came from generation while 54% was generated from the transmission segment. So, the company is not significantly skewed to any of these two segments; rather, both contribute equally, helping the company diversify.
Now, within these two segments, the company further diversified its business wisely through the products, services, and solutions it offers. Project-based solutions contributed around 47% and 42.4% to the total revenue during FY24 and FY25, respectively. Then services contributed around 25.7% and 25.6%, and products contributed around 27.3% and 32% respectively in both years.
Having said that, Siemens Energy has also diversified its business beyond the domestic boundaries. However, the exports contributed to around 23% of the revenue while domestic revenue made up the remaining 77% during FY25.
Massive Expansion Underway
Siemens Energy is expanding robustly to meet the energy demand of the country. A new manufacturing facility has been constructed to boost the transformers and switchgears production at Kalwa and Chhatrapati Sambhajinagar facilities. The company announced a capital expenditure of around ₹740 crore for the same.
A 360 bps rise in EBITDA Margins
During FY25, the company’s revenue increased by a strong 25% to ₹7,830 crore from ₹6,280 crore generated in FY24.
During the same period, the earnings before interest, tax, depreciation, and amortization (EBITDA) margins rose by 360 basis points (bps) to 19.3% of the revenue. The EBITDA was ₹1,510 crore for FY25, compared to ₹980 crore of FY24, a growth of 15.7% YoY.
Offering 68% ROCE at Zero Debt
Coming to the fundamentals of the company, Siemens Energy has a return on capital employed (ROCE) of 68%, which is one of the highest in the heavy electrical equipment industry, where the industry median is just 28%.
On top of that, Siemens Energy has delivered this return with almost zero debt in its books. The company has a debt-to-equity (D/E) ratio of just 0.03x, while the industry median is 0.17x.
Valuation
Coming to the valuation, the stock is currently trading at a price/earnings (PE) of 82.1x, which is way higher than the industry median of 32.3x, indicating a premium valuation.
6-Month Share Price Chart of Siemens Energy India Ltd.
Final Thoughts
The demerger of Siemens Energy from its parent company Siemens Ltd. seems to be working out well for both the companies. Being a market leader across power generation and transmission products, Siemens Energy is well aligned with India’s mission to be self-reliant in the energy space. A solid order book, growing revenue and profits, a well-diversified business offering a great revenue mix, are all indicating the same. On top of that, the company is offering a high ROCE, which, with almost zero debt, is something rare in this capital-heavy industry.
It will be interesting to see how this energy giant grows further, and for that, you need to add this stock to your watchlist.
Disclaimer:
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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