Siemens Energy India (SEI) has seen a strong year anchored by the transmission segment. Margin has expanded by 660bps over the past two years to 19.3%, aided by a better mix, improved pricing and rising export contribution. We expect margin to sustain at ~20%. Transmission profitability has seen the largest uplift, a 700bps margin increase YoY, while generation margin remains well supported by stable demand from core industrial segments. Order backlog has jumped from INR 77bn in FY23 to INR 162bn in FY25 (INR 111bn in FY24). We expect transmission bidding activity to be strong at INR 0.8–1trn/annum in next three years. We estimate execution momentum to sustain and growth in ordering to normalise on a high base in the near term. Maintain HOLD; value SEI at 65x FY27E earnings.
OutlookWe maintain HOLD with an unchanged TP of INR 3,125.
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