Siemens Energy makes stellar debut post demerger; stock hits 5% upper circuit

Siemens Energy India, the demerged energy business of  Siemens , made a strong debut on the domestic bourses on Thursday, with the stock listing at ₹2,840 per share on the NSE, up 14% from its discovery price of ₹2,478.20 apiece. On the BSE, Siemens Energy shares kicked off trading at ₹2,850 apiece.

After listing, the energy stock hit the 5% upper circuit of ₹2,982 on the NSE, while it touched a high of ₹2,992.45 on the BSE. At the time of reporting, Siemens Energy shares were trading at ₹2,802.10 apiece on the NSE, up 13.11% over the discovery price, while its market capitalisation stood at ₹99,789 crore.

Meanwhile, Siemens shares declined as much as 2.3% to hit an intraday low of ₹3,275 on the BSE. Early today, the stock opened a tad higher at ₹3,354.80 against the previous closing price of ₹3,353.35.    

On Thursday, the equity benchmark indices, the BSE Sensex and the NSE Nifty were trading flat, as geopolitical tensions in Middle East and a status quo on rates by the U.S. Federal Reserve in its latest policy announcement dented sentiment.

The demerger of Siemens Energy from Siemens has been effective from March 25, 2025, after it received all necessary approvals. The demerged entity focusses on transmission and distribution (T&D) as well as small-sized turbines.

The board of Siemens Energy, at its meeting held on March 25, 2025, appointed Sunil Mathur, managing director and CEO of Siemens, as the chairman of the newly constituted board of directors. Guilherme Mendonca, who was the head of Siemens’ energy business, was appointed the MD & CEO of the company, while Harish Shekar, who was the finance head of energy business, was elevated as the executive director and chief financial officer.

Benefits from planned T&D investments

According to brokerage firm Motilal Oswal, Siemens Energy India is estimated to benefit from a strong addressable market in the T&D business.

Siemens is among the few players with a presence in high-voltage lines up to 765kV and is, hence, expected to benefit from the planned investments.

Motilal Oswal has resumed coverage on the stock with a ‘BUY’ recommendation. The brokerage house pegs revenue and profit after tax (PAT) CAGR of 25% and 31%, respectively, over FY25-27, with Ebitda margin expanding to 21.4% by FY27.

“Our assumptions for revenue growth takes into account capacity doubling for transformers and expansion in GIS along with normal business growth for turbine business. With improvement in revenues and increased demand, we expect operating leverage to improve margin,” it said in a report.

In the power transmission business, the company provides AIS (Air Insulated Switchgear) and GIS (Gas Insulated Switchgear), power transformers (up to 765 kV, 500 MVA), reactors (up to 765 kV), and traction transformers (up to 33 kV, 10 MVA), along with EPC solutions and services. It also provides industrial gas turbines and steam turbines—typically used in captive power plants across industries such as metals, cement, chemicals, sugar, textiles, and oil & gas—with capacities of up to 250MW. Additionally, it supplies heavy-duty gas turbines of up to 600 MW, as well as large utility steam turbines and generators of up to 800 MW.

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