Siemens India shares soar 8% on NCLT nod for energy business demerger

Siemens' share price hasn't had a bright start to the year, crashing 18 percent since the start of the year.

Shares of Siemens Limited gained as much as 8 percent to Rs 5,520 in morning trade on March 26 after the company announced that the National Company Law Tribunal (NCLT) approved the company’s demerger, paving the way for Siemens Energy India Ltd to operate as a separate entity.

As part of the restructuring, Siemens shareholders will receive one share of Siemens Energy India for each Siemens Ltd. share they hold as of the record date, set for April 7, 2025. The demerger is effective from March 25, with March 1, 2025, marked as the appointed date. Siemens Energy India is set to list separately, a move expected to unlock value for investors.

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Leading the new entity, Guilherme Vieira De Mendonca, former head of Siemens’ energy business, will take charge as managing director and CEO. Harish Shekar, previously the finance head of the energy division, has been appointed executive director and CFO.

The demerger aligns with Siemens AG’s global strategy, which saw its energy business spun off in 2020. In India, Siemens Ltd. is now following suit, streamlining its operations to sharpen its focus.

Siemens delivered a strong third-quarter (Q3 FY25) performance, with consolidated net profit rising 22 percent year-on-year to Rs 614.3 crore, up from Rs 505.4 crore in the same period last year. However, revenue from operations slipped 3 percent to Rs 3,587.2 crore in the October-December quarter, compared to Rs 3,709.5 crore a year ago.

On the operational front, earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 11.5 percent year-on-year to Rs 401 crore, down from Rs 453 crore in the corresponding quarter. Margins also faced some compression, narrowing to 11.2 percent from 12.2 percent last year.

At about 12:35 pm, shares of the company were trading at Rs 5,502, higher by 7.6 percent from the last close on the NSE. Siemens' share price hasn't had a bright start to the year, crashing 18 percent since the start of the year.

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