When Sunil Mathur was given a five-year extension two years ago, Siemens in India was already a compelling story. Today, with three years still left on his clock, the narrative has shifted from promise to proof.
The numbers speak plainly: revenues doubled at Siemens Ltd, as the Indian unit of the German conglomerate is named, margins tripled, the share price is up 380% over five years, and India is now ranked the fourth-largest country in Siemens AG's €78.9 billion ( ₹8.44 trillion) universe and, like several other MNCs, is its fastest-growing market.
And now, after years of waiting, the one missing ingredient in India may finally be arriving for Siemens. The government's reductions in income tax and good and services tax (GST) rates are beginning to stir private consumption, and Mathur believes that by April the first real signs of a revival in private sector capital expenditure should be visible.
The investment community has taken notice. In a 15 December, 2025 note titled "Ready to Roll," ICICI Securities upgraded Siemens shares to a buy with a revised target price of ₹3,700 each, arguing that earnings are likely to grow more than 15% over the next two years. Analyst Mohit Kumar, who had earlier put the stock on hold, concluded that a strong order book in the company's smart infrastructure and mobility businesses, an uptick in margins led by the locomotive ramp-up, and the exit from the low-margin low-voltage motors business together create a case for re-rating the stock.
At the recent Siemens Transform event in Mumbai, Peter Koerte, Chief Technology Officer and Chief Strategy Officer of Siemens AG, and Mathur, managing director and chief executive officer (CEO) of Siemens Ltd, in an exclusive conversation with Mint, laid out a vision to capture the shifts reshaping the industry globally.
A bet on the macro economy
Mathur has long argued that India's growth story is structural, not cyclical. At an analyst meet post announcing Siemens Ltd's FY2025 results, he pointed to the macro economy: “6.5% growth, from my perspective, is more or less a given. The question is, can we get to 7-7.5%?”
He pointed to the government's twin interventions in reducing income tax and GST rates as the catalysts that could unlock the private consumption cycle that has been stubbornly muted. "The consumption story always takes 5 to 6 months to kick in," he noted, suggesting that by April, the first real signals of a private sector capex revival should emerge. The government had changed GST rates late-September with an eye on consumption.
This matters enormously for Siemens because digital industries, which comprises its automation and industrial software business, is almost entirely private-sector facing. With that segment growing at just 1.5x over five years amid muted private capex, the upside from a genuine revival is substantial. "The expectation is that this will now grow from around 5% to 8%, possibly more," Mathur told analysts.
The leapfrog argument
Perhaps the most compelling thread running through both conversations is the idea that India can leapfrog the conventional industrial development curve. Mathur drew an analogy to telephony when India skipped fixed-line phones and went straight to mobiles. The question now is whether it can do the same with industrial automation, bypassing the slow, sequential ladder of electrify-automate-digitize and reach AI-enabled manufacturing in one bound.
CTO Koerte was unequivocal: "I think you [India] will take major steps at the same time. You would not go into the deterministic automation level, but maybe you already go the autonomous way. But that's AI-empowered." He added pointedly that India's openness to AI adoption gives it an edge over more mature industrial economies. "When it comes to the adoption of AI, I see it clearly—US, China, India—as very open to embracing that. I see the ones you mentioned earlier—Europe, Germany, and Japan—actually not leading."
His hypothesis for this paradox is striking: Germany and Japan, built on precision engineering and deterministic systems, find probabilistic AI culturally difficult to embrace. India, unburdened by that legacy mindset, can jump faster.
Mathur spoke of the situation on the ground: “For a large number of small and medium enterprises, many of them are still in the electrification phase.”
Three businesses, one direction
One reason for Mathur's confidence is that all three of Siemens India's segments: digital industries, smart infrastructure, and mobility are structurally aligned with India's investment themes.
The smart infrastructure line of business, serving power utilities, data centres, and commercial buildings, delivered 14% revenue growth and expanded margin by 20 basis points in fiscal 2025. The data centre opportunity, in particular, has become a signature theme. As Koerte described in detail, Siemens participates across the entire data centre value chain from grid planning software and medium/low voltage systems to cooling automation and building management.
ICICI Securities estimates the smart infrastructure business will contribute approximately 70% of Siemens Ltd's earnings before interest and tax over the next two years, making it the undisputed engine of the company. [Siemens Ltd reported net profits of ₹1,769 crore on a revenue of ₹17,364 crore for its last financial year that ended September 2025.]
Mobility is the segment with the most drama and the most upside. The 9,000 horsepower locomotive project, a ₹26,000 crore order won in nine months flat, which Mathur called "the fastest an order of this size has been done anywhere in Siemens," is now ramping. The delivery schedule steps up from 40 locomotives over two years to 80, then 100, then 160. "Every time there is a step-up, there will be that step-up in volumes, and then there will be continuous growth," the India CEO said.
The Kavach signalling programme represents another long runway, with Siemens holding a developmental order and firm intent to be a serious player in the market. ICICI Securities expects mobility order inflows, which surged 50% year-on-year to ₹5,000 crore in FY25, to keep building as locomotive production scales and signalling tenders flow through.
Building for India, the world
Underpinning all of this is a manufacturing expansion story that is still unfolding. Since 2015, Siemens has invested over ₹9,000 crore in India, with an additional ₹1,100 crore announced in November 2023. That push has accelerated. Siemens announced the expansion of two of its factories: a new gas insulated switchgear and clean Air GIS facility in Goa costing ₹333 crore, and a greenfield metro train assembly facility in Aurangabad, taking total capex above ₹1,000 crore.
Both locations will also play a key role as export hubs. "…we will be able to better address customer requirements with a stronger portfolio and go-to-market," Mathur said.
The strategic logic is clear. Localization is not just about cost but it is about embedding Siemens more into India's supply chains, qualifying for government programmes, and building an export platform. With 32 factories and over 34,000 employees in India, Siemens is well-positioned in that direction.
As Koerte noted, almost any piece of software written by Siemens for its global products now has a footprint in India, with R&D teams here developing not just for the local market but for Siemens globally. The manufacturing build-out is the physical complement to that digital depth.