Siemens Energy India shares hit 5% Upper Circuit on NSE Listing

On Thursday, Siemens Energy India officially listed on the National Stock Exchange (NSE) for Rs. 2,840 per share and touched a 5 percent upper circuit at a price of Rs. 2,982 per share following its demerger from Siemens India Limited, marking a significant milestone in the Indian energy sector. The demerger, effective from April 7, 2025, was designed to create a focused entity dedicated to power transmission and distribution (T&D), which allows both Siemens India and Siemens Energy India to pursue their own growth strategies. This move enables Siemens Energy to emerge as India’s largest listed pure-play T&D equipment company, with a market capitalization greater than the likes of Hitachi and GE Vernova.

Jefferies, a leading brokerage firm, has expressed strong optimism about Siemens Energy’s prospects. The firm has assigned a ‘Buy’ rating with a target price of Rs. 3,700 per share and expected the stock to list in the range of Rs. 2,995 to Rs. 3,711 per share. Jefferies forecasts a robust 40 percent CAGR in earnings between FY24 and FY27, which is driven by a healthy T&D pipeline and operating leverage, and improving plant utilisation, which is currently hovering around 60 percent. The company’s order book as of March 2025 stood at Rs. 15,100 crore, which is 2.4 times its FY24 revenue, while it secured Rs. 5,100 crore in new orders in just the first five months of FY25. HDFC Securities also supports a bullish outlook, setting a target price of Rs. 3,000 and highlighting Siemens Energy’s strong presence in decarbonisation, power generation, grid automation, and clean energy solutions.

The rationale behind the demerger is to unlock value and sharpen the strategic focus on T&D business. By separating the energy business, Siemens Energy India becomes a pure-play power entity with exclusive rights in several South Asian markets. This demerger allows for better decision-making and alignment with the rapid growth of the Indian T&D sector, which is on a growth path along with support from government initiatives such as the Rs. 1.5 lakh crore T&D project awards in FY25, which is a huge increase compared to the previous year.

Looking ahead, Siemens Energy is doubling its power transformer capacity with a Rs 460 crore capital expenditure, reflecting confidence in sustained demand. The company is also expanding into new business lines such as PEM electrolysers, battery storage solutions, and hydrogen blend-fired gas turbines while leveraging its parent’s technological advancements to drive long-term growth. These initiatives are expected to further strengthen Siemens Energy’s leadership in the transition to cleaner, more reliable energy systems, as per HDFC Securities.

Siemens Energy faces competition from several global and domestic players in the energy and T&D space. Its key listed peers include Hitachi Energy, GE Vernova, Schneider Electric, and others. These companies operate across various segments such as grid technologies, power generation, automation, and renewable energy, but Siemens Energy’s portfolio and strong order book position favour it in the Indian and global markets.