Siemens Energy India Limited (SEIL) has reported a strong start to FY26, delivering solid operational performance in the first quarter while outlining a major capacity expansion plan to support India’s rapidly growing power sector. For Q1 FY26, the company posted a profit from operations margin of 18.8%, excluding foreign exchange and commodity gains. This compares with 16.8% in the preceding quarter on a comparable basis, adjusted for one-time impacts and forex and commodity losses recorded in Q1 FY25. The improved margin reflects healthy execution across projects and sustained demand across the energy value chain.
Profit after Tax for the quarter was impacted by a one-time expense of INR 52 crore related to the implementation of the New Labour Codes announced by the Government of India on November 21, 2025. Excluding this exceptional item, underlying profitability remained strong, supported by disciplined cost management and efficient project delivery.
In a significant strategic move, the company’s Board of Directors has approved a capital expenditure of INR 2,060 crore to expand its large power transformer manufacturing capacity by approximately 30,000 MVA. The additional capacity is expected to become operational between 2030 and 2032. This expansion is aimed at addressing rising domestic and international demand for transmission infrastructure as India accelerates grid modernization and renewable energy integration.
The investment aligns with the Government of India’s Make in India initiative and supports the country’s ambition to strengthen local manufacturing capabilities in critical energy equipment. By enhancing domestic transformer production, SEIL seeks to reinforce supply chain resilience and reduce dependency on imports while positioning itself to capture long-term growth opportunities.
Commenting on the results, Guilherme Mendonca, Managing Director and Chief Executive Officer of Siemens Energy India Limited, stated that the first quarter performance underscores the sustained strength of the energy market and the company’s ability to convert its order backlog into revenue effectively. He added that the transformer capacity expansion demonstrates SEIL’s commitment to supporting India’s power infrastructure development and contributing to the vision of a developed nation.
SEIL operates across the full energy spectrum, offering technologies for power and heat generation, transmission, and energy storage. Its portfolio spans conventional and renewable solutions, including gas and steam turbines, hydrogen-enabled hybrid power plants, generators, and transformers. Through continued investment and operational excellence, the company aims to remain a trusted partner in India’s energy transition journey.
