Siemens Share Price Declines 18% in CY2025 So Far; Here’s What Led to the Decline

Siemens Limited, the Indian arm of Siemens AG, operates across multiple domains, including industry, infrastructure, transport, and power transmission and generation. The company plays a key role in developing resource-efficient factories, resilient supply chains, smart buildings, and modern grids.

Despite its strong market presence, Siemens’ stock has faced significant volatility in 2025, with a notable decline in its share price.

Sharp Decline in Siemens’ Share Price: What Happened?

The stock of Siemens witnessed back-to-back losses on February 1 and 3, 2025, leading to a 14% drop in just 2 trading sessions. However, the stock showed some recovery, gaining 2.5% by 10:20 AM on February 4, 2025.

As of February 4, 2025, Siemens’ share price is down 18% year-to-date.

Budget 2025: The Key Trigger Behind the Decline

The primary reason for the stock’s decline was the Budget 2025 announcement, which left investors disappointed due to lower-than-expected capex allocation.

• The government set a capital expenditure (capex) target of ₹11.21 lakh crore for FY26, marking a 0.9% increase from the previous fiscal.
• As per the news report expectations were significantly higher, in the range of ₹13-14 lakh crore. The lower outlay was perceived as a minor negative for capital goods and infrastructure stocks, including Siemens.

Impact on Infrastructure Spending

One of the key sectors affected was road and highway development, a significant area of capital goods demand.

• The Ministry of Road Transport and Highways (MoRTH) was allocated ₹2.72 trillion for FY25-26, largely unchanged from the previous year.
• The flattish allocation suggests a shift in government strategy towards build-operate-transfer (BOT) models and asset monetisation rather than direct spending.

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