Siemens Q4 FY26: Revenue up 14%, PAT falls 26%

Key takeaway from the quarter

Siemens Limited reported a clear split between growth and profitability in the October to December 2025 quarter (quarter ended December 31, 2025). Consolidated revenue from operations increased 14.0% year-on-year to ₹3,831 crore. But consolidated profit after tax (PAT) from continuing operations declined 26.0% YoY to ₹269 crore. The company attributed the pressure on profitability to factors including higher material costs, foreign exchange losses, and a one-off cost related to labour code implementation.

Consolidated performance: growth, but lower PAT

The company’s consolidated top line expanded on the back of revenue growth across businesses, alongside strong orders led by Digital Industries and Smart Infrastructure. Even with the revenue increase to ₹3,831 crore, earnings performance weakened on a YoY basis. Basic and diluted EPS from continuing operations came in at ₹7.55, down from ₹10.20 in the same quarter last year. The results highlight that strong execution and order momentum did not fully offset cost headwinds during the period.

What management said

Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Limited, linked the quarter’s operating environment to broader macro conditions. He said India’s economic resilience stood out even as geopolitical developments and global uncertainties weighed on sentiment. He also said the company delivered a steady performance driven by disciplined execution and a healthy order book, resulting in 14% revenue growth. The management commentary, alongside the financial numbers, indicates the focus remains on execution and order conversion, even as margins faced near-term stress.

Orders and backlog: demand indicators stayed firm

Siemens reported strong order growth in the quarter, with new orders rising 19% to ₹4,829 crore. Order backlog grew 7% to ₹43,004 crore. The company said order growth was driven by Digital Industries and Smart Infrastructure, while revenue grew across all businesses. These demand indicators matter for investors because they typically signal the scale of future revenue visibility, even when quarterly profitability is uneven.

Why profitability came under pressure

The company flagged several drivers behind margin compression. Profit from operations included a significant temporary commodity gain in the Smart Infrastructure business, but this was partly offset by higher material cost in the Digital Industries business due to substantial euro appreciation. Siemens also reported foreign exchange loss at the Mobility business. In addition, PAT was impacted by a one-off cost of ₹74 crore related to implementation of the New Labour Codes announced by the Government on November 21, 2025.

Standalone numbers: revenue up, PAT down

On a standalone basis, Siemens Limited reported revenue growth of 15.3% YoY to ₹3,398.5 crore. However, standalone PAT from continuing operations also decreased year-on-year, according to the details provided. While the article data does not specify the standalone PAT figure, the direction of movement aligns with the broader profitability pressure seen at the consolidated level.

Another set of disclosed figures in circulation

The material provided also includes a separate set of results figures for Q4 FY2025: consolidated revenue from operations of ₹5,171.2 crore (from ₹4,457 crore in Q4 FY2024 and ₹4,347 crore in Q3 FY2025), and consolidated PAT of ₹485 crore, down 7.1% YoY from ₹523 crore. It also mentions profit from operations at ₹566 crore versus ₹493 crore in Q4 FY2024. These figures are presented as part of exchange-filing style disclosures in the text, and are distinct from the “quarter ended December 31, 2025” snapshot reported earlier.

Siemens Energy India results mentioned separately

The text also references Siemens Energy India Ltd, which reported revenue from operations of ₹2,646 crore (up 27% YoY from ₹2,079 crore) and net profit of ₹360 crore (up 31% YoY from ₹273 crore) for a quarter ending September 30, 2025. EBITDA was reported at ₹479 crore versus ₹385 crore, with EBITDA margin at 18.1% after a 40 basis point contraction. The company cited higher raw material costs and a change in revenue mix toward project business as factors affecting margins. These numbers relate to Siemens Energy India and should not be conflated with Siemens Limited’s quarter ended December 31, 2025.

Snapshot table: key facts reported

Market impact: what the numbers signal

The data points to a quarter where demand and execution remained supportive, as shown by higher revenue and order inflows. But investors tracking operating leverage would note the disconnect between revenue growth and PAT decline, indicating margin compression. The company’s explanation points to a mix of cost inflation, currency movements, and business-level factors such as forex losses and euro-driven material cost pressure. The disclosed one-off labour code cost of ₹74 crore also means part of the profit decline was non-recurring in nature, based on the description.

Conclusion

Siemens Limited’s October to December 2025 quarter combined healthy revenue and order growth with weaker profitability from continuing operations. The company has pointed to commodity movements, higher material costs, forex impact, and the ₹74 crore one-off labour code cost as drivers of the PAT decline. Going ahead, investors are likely to track how order backlog conversion, commodity effects, and currency-linked costs shape operating performance in subsequent quarters.