Siemens India has been making waves in the market, with its share price surging by 8% after the National Company Law Tribunal (NCLT) approved the company’s demerger, separating its energy business into a new entity, Siemens Energy India. This move has sparked optimism among investors, as the demerger is expected to unlock significant value for shareholders.
But what does this mean for Siemens India and its shareholders? Let’s break it down.
What is the demerger about?
Siemens Ltd., the Indian arm of Siemens AG, is undergoing a major structural change. The company’s energy business is being spun off into a new entity, Siemens Energy India, in line with Siemens AG’s global strategy, which started in 2020.
This restructuring aims to streamline Siemens Ltd.’s operations, allowing it to focus on its core business areas while Siemens Energy India focuses on energy solutions in India.
Under this demerger, Siemens shareholders will receive one share of Siemens Energy India for every share of Siemens Ltd. they currently hold. This 1:1 equity allotment ratio will come into effect after the record date of April 7, 2025, with the appointed date being March 1, 2025.
The demerger will officially take effect from March 25, 2025. Siemens Energy India will list separately on the stock exchanges, which is expected to create new opportunities for growth.
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Siemens India share price jumps on demerger news
Following the announcement of the NCLT approval, Siemens India shares experienced a notable uptick. On March 26, 2025, the stock surged by 8%, reaching a high of ₹ 5,520 during morning trading. At noon, shares were trading at ₹ 5,502, reflecting a gain of 7.6% from the previous close on the NSE.
This positive movement is a welcome shift for Siemens, especially considering that the company’s share price has been under pressure, falling 18% since the start of the year. However, the announcement of the demerger has created optimism in the market, boosting investor confidence.
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Siemens India’s financial performance
While the demerger has been the focal point for investors, let’s not forget the company’s financial results for Q3 FY25. Siemens India reported a 22% increase in net profit, rising to ₹ 614.3 crore compared to ₹ 505.4 crore during the same period last year. This strong performance demonstrates the company’s ability to generate profits despite the ongoing restructuring efforts.
However, there was a decline in revenue from operations, which slipped by 3% to ₹3,587.2 crore compared to ₹ 3,709.5 crore in the previous year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also fell by 11.5%, down to ₹ 401 crore from ₹ 453 crore in the previous year. These declines indicate some operational challenges, but the overall net profit growth suggests the company remains on track.
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Here’s a summary of the key financial figures:
| Key Metrics | Values |
| Siemens Q3 FY25 revenue (₹ crore) | ₹ 3,587.2 |
| Siemens FY25 EBITDA (₹ crore) | ₹ 401 |
| Siemens Q3 FY25 net profit (₹ crore) | ₹ 614.3 |
Leadership in Siemens Energy India
With the demerger, Siemens Energy India will operate as a separate entity, and its leadership will play a critical role in its success. Guilherme Vieira De Mendonca, who was the head of Siemens’ energy business globally, has been appointed as the Managing Director and CEO of Siemens Energy India. His extensive experience will help guide the company as it expands its footprint in the Indian energy sector.
Harish Shekar, who was previously the finance head of Siemens’ energy division, will take on the role of Executive Director and CFO at Siemens Energy India. Their leadership team is expected to drive the company’s growth, especially in renewable energy, as India continues to make strides toward cleaner energy.
Analyst view on Siemens Energy India
Siemens India’s share price has reacted positively to the demerger news, but should investors consider buying, selling, or holding their shares?
According to analysts, Siemens Ltd.’s share price target is ₹ 7,184.50, which represents an upside of about 32.3% from the current market price of ₹ 5,430. While the stock has seen some setbacks this year, the demerger is seen as a potential value unlock for investors, especially with Siemens Energy India expected to list separately.
Experts are divided on the stock’s short-term performance. While some analysts recommend holding the stock, others suggest buying, especially if you’re looking for long-term growth. As always, it’s important to consult a financial advisor before making any decisions.
The bottom line
The approval of Siemens India’s demerger by the NCLT has generated significant buzz in the market, with shares soaring by 8%. The separation of Siemens Energy India into a standalone entity is expected to unlock value for shareholders, and with strong leadership in place, the future looks promising.
However, investors should also keep in mind the company’s mixed financial results, including a decline in revenue and EBITDA. While the demerger brings potential, it’s essential to consider the long-term prospects of both Siemens Ltd. and Siemens Energy India.
