Siemens Energy India Ltd (ENRIN) Stock: Dips Amid Market Reassessment on HVDC

TLDRs;

• Siemens Energy India shares fall 5% after losing a major HVDC project, spurring investor caution.
• Market reaction highlights near-term order timing sensitivity in India’s high-voltage transmission sector.
• Analysts remain positive on long-term HVDC demand despite short-term stock pressure.
• Company maintains strong backlog, dividend plans, and ongoing factory expansion despite dip.

Mumbai, December 22, 2025,  Shares of Siemens Energy India Limited (NSE: ENRIN, BSE: 544390) fell sharply in Monday trading as investors digested the outcome of a high-profile HVDC project award.

Siemens Energy AG, ENR.DE

By midday, ENRIN was trading around ₹2,615 on NSE, down roughly 5% from Friday’s close, reflecting a swift market reassessment of near-term order prospects.

HVDC Order Miss Triggers Investor Caution

The immediate catalyst for the stock decline was news that GE Vernova T&D India had won a major multi-year HVDC contract from AESL Projects Limited. The project, a 2,500 MW, ±500 kV VSC terminal station for renewable power evacuation from Khavda to South Olpad, had been widely anticipated as a potential Siemens Energy win.

The surprise result sent shares lower, illustrating the high sensitivity of ENRIN stock to mega-order outcomes in the HVDC segment.

While HVDC orders are technically complex and infrequent, they significantly influence quarterly order inflows and medium-term revenue visibility. Market observers noted that even in a favorable transmission investment environment, losing a marquee order can trigger near-term volatility for a stock priced for growth.

Long-Term HVDC Demand Remains Intact

Despite Monday’s dip, analysts emphasize that the broader HVDC opportunity in India remains robust. ICICIdirect’s Head of Research, Pankaj Pandey, highlighted the multi-year demand cycle for grid modernization and renewable power evacuation.

Typical HVDC projects can reach ₹20,000 crore in value, with equipment procurement accounting for roughly half of that figure.

For Siemens Energy India, this structural tailwind means that a single lost contract does not diminish the company’s long-term prospects. As India continues its renewable integration push, HVDC projects remain a central element of grid stability and energy transmission strategy.

Solid Backlog and Operational Strength

Siemens Energy India has reported strong fundamentals despite the market setback. For Q4 FY2025, the company posted revenue of ₹2,646 crore, up 27%, and net profit of ₹360 crore, up 31%. Its order backlog stands at ₹16,205 crore, up 47%, while new orders for the quarter remained stable at ₹2,351 crore.

The company also maintains a significant manufacturing footprint in India, including ten factories and over 4,200 employees, with ongoing capacity expansion at its Kalwa transformer facility. This operational scale, coupled with a proposed final dividend of ₹4 per equity share, provides investors with tangible value even as the stock reacts to short-term market developments.

Analysts’ Outlook and Market Sentiment

Brokerages continue to adopt a cautious stance on ENRIN. ICICI Securities maintains a “HOLD” rating with a 12-month target of ₹3,125, citing the stock’s elevated valuation relative to earnings. Market consensus shows a wide range of targets between ₹2,536 and ₹4,000, reflecting differing views on how quickly mega-project awards convert into revenue.

Investors will be closely watching upcoming HVDC order announcements, execution quality, and margin trends. Structural positives such as multi-year transmission capex, local manufacturing scale, and India’s renewable expansion roadmap continue to support ENRIN’s long-term story. Yet, competitive intensity and the lumpy nature of mega-orders remain key near-term risks for the stock.

Bottom Line

Monday’s decline highlights how perception of HVDC order wins can sway investor sentiment in the high-voltage transmission sector. Siemens Energy India remains well-positioned in India’s energy modernization journey, with a strong backlog, healthy dividend prospects, and ongoing factory expansions.

The next set of major project awards and execution results will likely determine whether the recent dip is temporary or the beginning of broader valuation recalibration.

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