Siemens Ltd. reported its second quarter results for the fiscal year 2025, surpassing market expectations despite a challenging macroeconomic environment. The company posted a 44% year-on-year surge in new orders, reaching ₹5,305 crore, largely attributed to robust public infrastructure investments and strong performance in its Mobility and Smart Infrastructure segments. This significant order growth also led to a 7% rise in the order backlog, indicating continued demand and a healthy pipeline for future business.

Revenue for the quarter edged up by 2.6% year-on-year to ₹4,259 crore, reflecting stable performance amid the ongoing normalization of demand in digital industries and routine project delivery in the mobility business. However, the company’s net profit declined sharply, with figures showing a drop of between 25% and 37% compared to the same period last year, depending on the calculation basis. The decline was primarily due to under-absorption of fixed costs and higher material expenses in the digital industries segment, as well as the absence of an extraordinary gain from a property sale that had boosted profits in the previous year.

Profitability metrics also saw pressure during the quarter. EBITDA fell by over 26% year-on-year to ₹467.5 crore, and margins contracted to 11% from 15.3% a year earlier. The results were further impacted by ₹63 crore in demerger-related expenses, reflecting the ongoing structural changes within the company. Despite these headwinds, Siemens’ management emphasized that underlying profitability remains aligned with its ambition for profitable growth, especially when adjusting for extraordinary items.

Siemens reaffirmed its growth outlook for the remainder of the fiscal year, buoyed by strong order momentum and continued public capital expenditure in infrastructure. CEO Sunil Mathur highlighted that, while the short-cycle digital industries business continues to face muted private sector investment, the company’s core businesses are well-positioned to benefit from ongoing infrastructure spending and project execution excellence.