Mumbai, December 22, 2025 – Shares of Siemens Energy India Limited (NSE: ENRIN, BSE: 544390) experienced a notable decline in Monday trading, falling over 5% as investors reacted to the disappointing outcome of a high-profile HVDC project award.
By midday, ENRIN was trading at approximately ₹2,615 on the NSE, reflecting a swift reassessment of the company’s near-term order prospects following the announcement that GE Vernova T&D India had secured a significant multi-year HVDC contract from AESL Projects Limited. This project, a 2,500 MW, ±500 kV VSC terminal station aimed at the renewable power evacuation from Khavda to South Olpad, was highly anticipated as a potential win for Siemens Energy.
The unexpected news of GE Vernova’s success has raised concerns among investors, highlighting how sensitive ENRIN’s stock price is to the outcomes of major HVDC contracts. Though HVDC projects are infrequent and technically demanding, they play a critical role in determining quarterly revenues and the overall market perception of growth prospects.
Long-Term Potential Remains Strong
Despite the recent dip in stock price, many analysts maintain that the demand for HVDC technology in India is robust. Pankaj Pandey, Head of Research at ICICIdirect, pointed out the ongoing shift toward grid modernization and the increased need for renewable energy evacuation, which supports a multi-year demand cycle for HVDC projects.
Typical HVDC projects can be worth upwards of ₹20,000 crore, with equipment procurement comprising a significant portion of this value. Thus, a single missed contract does not detract from Siemens Energy India’s long-term growth trajectory, especially as India strives to integrate more renewable energy into its grid.
Strong Operations Amid Short-Term Challenges
Siemens Energy India has showcased solid financial health despite the recent market fluctuations. For the fourth quarter of FY2025, the company reported a revenue increase of 27% to ₹2,646 crore and a net profit rise of 31% to ₹360 crore. Notably, its order backlog reached ₹16,205 crore, reflecting a 47% increase, while new orders for the quarter remained stable at ₹2,351 crore.
The company boasts a significant operational footprint in India, with ten manufacturing facilities and a workforce exceeding 4,200 employees. Ongoing expansions at its Kalwa transformer facility further position Siemens Energy India for future growth. Additionally, a proposed final dividend of ₹4 per equity share offers tangible returns to investors amid current market challenges.
Market Sentiment and Analyst Predictions
Brokerages are adopting a cautious stance on ENRIN’s stock performance. ICICI Securities maintains a “HOLD” rating with a target price of ₹3,125, citing the stock’s high valuation relative to earnings. The market consensus shows price targets fluctuating between ₹2,536 and ₹4,000, demonstrating varied perspectives about the timelines for revenue realization from major project awards.
Investors are advised to monitor upcoming HVDC project announcements, execution quality, and margin trends closely. Although structural factors like long-term transmission investments and local manufacturing scale support Siemens Energy India’s prospects, the competitive landscape and the irregular nature of large contracts present continued short-term risks.
Conclusion
The recent decline in Siemens Energy India’s stock illustrates how investor sentiment can shift dramatically based on project outcomes in the high-voltage transmission sector. Nevertheless, the company remains well-positioned in India’s energy modernization journey, backed by a strong order backlog, promising dividend prospects, and ongoing operational expansions.
Future project announcements and execution results will be pivotal in determining whether this recent dip is transient or part of a broader valuation recalibration.
