Siemens reports record order backlog amid margin pressure

Siemens reported a significant increase in business activity for the first quarter of 2027, with new orders rising 16.50 percent year-over-year to 63.28 billion rupees. The company's total order backlog reached a record 466.70 billion rupees, representing a 9.60 percent increase.

Despite the growth in orders and revenue, which stood at 47.14 billion rupees, Siemens faced pressure on its operating margins. The operating margin fell to 9.10 percent from 12.60 percent in the previous year, driven by higher material costs, raw material price volatility, exchange rate effects, and the depreciation of the rupee against the euro. Specific segments, including Smart Infrastructure and Digital Industries, experienced margin compression.

ICICI Direct Research has maintained a 'hold' rating on Siemens stock with a price target of 4,150 rupees, noting that while the record backlog provides a foundation for medium-term execution, margin recovery remains the critical short-term indicator.