Siemens Q3 Results: Siemens Ltd reported a sharp jump in net profit for the quarter ended June 30, with the bottom line getting a significant boost from discontinued operations.
The company’s net profit surged to Rs 2,143 crore from Rs 423 crore in the year-ago period.
For context, Siemens follows an October-September financial year. This means the April-June period is its third quarter, or Q3, even as most Indian companies are currently reporting their Q1 FY27 results.
Revenue from operations rose 14.8 per cent year-on-year to Rs 4,714 crore from Rs 4,108 crore. However, the growth at the top line did not translate into higher operating profit.
EBITDA fell 16.8 per cent to Rs 431 crore from Rs 518 crore in the corresponding period last year. Consequently, EBITDA margin narrowed sharply to 9.1 per cent from 12.6 per cent.
Discontinued operations lift net profit
The key driver behind Siemens’ sharp profit growth was the contribution from discontinued operations. Profit from discontinued operations stood at Rs 1,800 crore during the quarter, compared with just Rs 1 crore in the year-ago period.
This means the headline jump in net profit does not fully reflect the performance of the company’s continuing operations. While revenue growth remained healthy, the decline in EBITDA and margin contraction point to pressure on operating profitability.
The divergence between revenue and operating profit is therefore the key takeaway from Siemens’ quarterly numbers. Revenue grew at a double-digit pace, but lower EBITDA suggests that profitability remained under pressure.
With the bulk of the net profit growth coming from discontinued operations, investors are likely to look beyond the headline profit number and focus on the performance of Siemens’ continuing business.