Posted on March 26, 2025, by Niftynews
Siemens India share price surged by over 5% on March 26, 2025, following the National Company Law Tribunal (NCLT) approval of the demerger of Siemens’ energy business. The approval allows Siemens Energy India Ltd to become a separate entity, which is expected to unlock significant value for shareholders and boost Siemens India share price in the future.
What Does the Siemens India Share Price Surge Mean for Investors?
The announcement of the demerger has had a positive effect on the Siemens India share price, which saw an increase of up to 5.3% to ₹5,391. This uptick reflects investor confidence in the restructuring plan. As part of the demerger, shareholders of Siemens Ltd. will receive one share of Siemens Energy India Ltd for each Siemens Ltd. share they hold by April 7, 2025. The demerger is now effective, with March 1, 2025 set as the appointed date for the restructuring.
Siemens India Share Price Outlook Post-Demerger
With Siemens Energy India Ltd now operating as a separate company, there is a general sense of optimism surrounding the Siemens India share price. Investors are hopeful that the demerger will streamline operations for both Siemens Ltd. and Siemens Energy India, potentially improving profitability and unlocking additional value. This move follows Siemens AG’s global strategy, which also spun off its energy business in 2020.
Leadership Changes and Future Prospects for Siemens Energy India
As part of the restructuring, Siemens Energy India will be led by Guilherme Vieira De Mendonca, the former head of Siemens’ energy business, who will take over as Managing Director and CEO. Harish Shekar, previously the finance head of Siemens’ energy division, will serve as Executive Director and CFO. With these strategic leadership appointments, Siemens Energy India is well-positioned to focus on its energy sector operations, which may help enhance shareholder value and positively influence the Siemens India share price in the long term.
Siemens India Share Price Performance: A Mixed Start to 2025
While the recent surge in the Siemens India share price is encouraging, the company’s performance since the beginning of 2025 has been lackluster, with a decline of 18% in the stock value. The demerger, however, could help reverse this trend by providing both entities with greater focus on their core operations. At around 10 AM on March 26, Siemens Ltd. shares were trading at ₹5,351, reflecting a 4.55% increase from the previous day’s close.
Siemens India’s Financial Results and Impact on Share Price
In Q3 FY25, Siemens India reported a 22% year-on-year increase in net profit, totaling ₹614.3 crore. However, the company’s revenue from operations slipped by 3%, declining from ₹3,709.5 crore in Q3 FY24 to ₹3,587.2 crore in Q3 FY25. These mixed results show that while Siemens India remains profitable, it faces challenges in maintaining strong revenue growth, which has affected the Siemens India share price.
The EBITDA for the quarter also fell by 11.5%, from ₹453 crore to ₹401 crore, and the EBITDA margin narrowed to 11.2% from 12.2% last year. Despite these operational challenges, the company’s strong net profit growth is a positive sign for investors.
Siemens India’s Strategic Shift and Stock Market Implications
The demerger is a clear strategic shift for Siemens India, allowing the company to focus on its core industrial operations while Siemens Energy India tackles its own energy sector growth. This restructuring is expected to provide both companies with the agility to thrive in their respective markets, potentially driving up the Siemens India share price in the future.
Conclusion: Siemens India Share Price Outlook and Market Impact
The Siemens India share price has experienced a boost following the NCLT’s approval of the energy business demerger, reflecting optimism among investors about the restructuring. Although Siemens India faced challenges earlier in 2025, the separation of the energy business is seen as a strategic move that will create more value for investors. With experienced leadership taking charge of Siemens Energy India, both companies are poised for a bright future, which could result in positive Siemens India share price movement in the coming months.
