Siemens Limited books Rs 2,099 crore provisional LVM sale gain

Siemens Limited sold its Low Voltage Motors business on 1 June 2026 for a cash enterprise value of Rs 2,200 crore and recognised a provisional Rs 2,099 crore gain, lifting profit before tax from discontinued operations to Rs 2,107.8 crore in the six months ended 30 September 2026.

What did Siemens sell and for how much?

Siemens sold and transferred its Low Voltage Motors, or LVM, business to Innomotics India Private Limited as a going concern through a slump sale on 1 June 2026. The stated cash consideration was an enterprise value of Rs 2,200 crore, calculated on a cash-free and debt-free basis and subject to mutually agreed adjustments.

The sale was completed in the quarter ended 30 June 2026, rather than in the September quarter. Siemens recognised a provisional gain of Rs 2,099 crore in both the June quarter and the six months ended 30 September 2026, based on the preliminary sale consideration; the filing does not disclose the final adjusted consideration.

A slump sale transfers an undertaking as a going concern rather than separately selling individual assets and liabilities. Siemens said the LVM results included in its financial statements cover activity only up to 31 May 2026, immediately before the 1 June 2026 transfer.

How did the LVM sale affect Siemens' reported profit?

The LVM disposal gain drove Siemens' discontinued-operations result, with profit before tax from discontinued operations reaching Rs 2,107.8 crore in the six months ended 30 September 2026. The LVM business generated Rs 8.8 crore of profit before tax before the sale gain, meaning the reported result primarily reflected the transaction rather than operating earnings.

After tax expense of Rs 308.1 crore, discontinued operations delivered Rs 1,799.7 crore of profit for the six-month period. In the six months ended 30 September 2025, LVM reported Rs 7.4 crore of profit before tax and Rs 5.5 crore of profit after tax, with no disposal gain recorded.

Siemens' standalone cash-flow statement reconciles the Rs 2,099 crore gain from sale of discontinued operations in operating cash flows. It also reports Rs 2,090.5 crore of proceeds from sale of discontinued operations in investing cash flows for the six months ended 30 September 2026, while the enterprise value remains subject to the agreed adjustments.

What did the LVM business earn before its transfer?

LVM recorded revenue from operations of Rs 191.6 crore and total income of Rs 193.2 crore for the period up to 31 May 2026. Total expenses were Rs 184.4 crore, leaving profit before tax of Rs 8.8 crore before the Rs 2,099 crore disposal gain.

The comparable six months ended 30 September 2025 showed Rs 509.9 crore of revenue, Rs 511.4 crore of total income and Rs 504 crore of expenses, producing Rs 7.4 crore of profit before tax. This is not a like-for-like revenue comparison because the 2026 period ends on the sale date, while the 2025 figure represents a full six months.

For the quarter ended 30 June 2026, which includes LVM's pre-transfer result, the business recorded Rs 191.6 crore of revenue and Rs 8.8 crore of profit before tax. The quarter ended 30 September 2025 recorded Rs 270.8 crore of revenue and Rs 5.9 crore of profit before tax, again covering a different duration from the 2026 pre-sale period.

LVM generated Rs 966.8 crore of revenue and Rs 39.1 crore of profit before tax in the twelve months ended 30 September 2025. The filing also reports Rs 1,521.2 crore of revenue and Rs 71.7 crore of profit before tax for the eighteen months ended 31 March 2026, following Siemens' change in financial year.

How will Siemens report the disposed business?

Siemens has presented LVM as a discontinued operation under Indian Accounting Standard 105, or Ind AS 105, which addresses non-current assets held for sale and discontinued operations. The accounting treatment separates LVM's revenue, expenses, tax and disposal gain from continuing operations and requires previous-period figures to be re-presented.

At 31 March 2026, Siemens' standalone balance sheet included Rs 250 crore of current assets classified as held for sale for LVM and Rs 337.2 crore of related liabilities. These balances no longer appear as separate held-for-sale classifications at 30 September 2026, after the transfer completed on 1 June 2026.

The continuing business reported Rs 9,308.8 crore of standalone revenue in the six months ended 30 September 2026, compared with Rs 7,991.7 crore in the corresponding 2025 period. Standalone profit before tax from continuing operations rose to Rs 1,215.5 crore from Rs 1,064 crore, while the LVM gain remained outside those continuing-operation figures.

What other changes affect Siemens' comparisons?

Siemens' prior-period comparisons are also affected by the demerger of its Energy business during the eighteen months ended 31 March 2026. The scheme had an appointed date of 1 March 2025 and became effective on 25 March 2025, transferring net assets of Rs 3,784.5 crore, including Rs 2,547.8 crore of cash and cash equivalents, to Siemens Energy India Limited.

The company changed its financial year, making the preceding financial year an eighteen-month period from 1 October 2024 to 31 March 2026. Siemens said the six-month comparative for the period ended 30 September 2025 was derived by aggregating published results for the quarters ended 30 June 2025 and 30 September 2025.

A separate proposed amalgamation also remains unresolved. Siemens' board approved the merger of wholly owned subsidiary Siemens Rail Automation Private Limited with Siemens on 26 May 2025, but the scheme requires approvals from regulatory authorities, including the National Company Law Tribunal.

Conclusion

Siemens' completed LVM sale materially changed reported first-half profit, producing a provisional Rs 2,099 crore gain and Rs 1,799.7 crore of after-tax profit from discontinued operations. The underlying transferred business contributed Rs 8.8 crore of pre-tax profit up to 31 May 2026, while continuing operations delivered Rs 1,215.5 crore of standalone profit before tax for the six months ended 30 September 2026.

The next disclosed item to watch is the mutually agreed adjustment to the Rs 2,200 crore enterprise value, because Siemens has classified the disposal gain as provisional. The proposed Siemens Rail Automation Private Limited amalgamation is another pending matter, with regulatory and National Company Law Tribunal approvals still required.