ABB India (500002) Q1 25/26 earnings summary

Executive summary

• Orders grew 25% year-over-year, with strong contributions from data centers and railways, and revenue increased 6% YoY, though below expectations due to geopolitical and supply chain disruptions.

• Profit after tax declined 25% YoY, impacted by higher input costs, rupee depreciation, and slower project execution.

• Cash position remained robust at INR 6,042 crore, excluding robotics sale, and rose to INR 7,600 crore including it.

• Announced $75 million investment to expand manufacturing and R&D, including new product launches and sustainability achievements, with an 82% reduction in Scope 1 and 2 GHG emissions.

• Total income for the quarter ended March 31, 2026, was ₹3,283.70 crore, with profit for the period at ₹1,783.65 crore, mainly due to a large gain from discontinued operations.

Financial highlights

• Revenue for Q1 CY2026 was INR 3,184 crore (+6% YoY), impacted by geopolitical issues and commodity price volatility.

• Profit from continuing operations after tax was ₹341.91 crore, with profit before tax at ₹461.87 crore.

• EBITDA margin was 12.8% (down from 18.6% YoY); PAT margin was 10.7% (down from 15.2% YoY).

• Material costs increased to 61.3% of revenue due to commodity inflation and rupee depreciation.

• Exchange and commodity losses impacted results by INR 27.5 crore.

Outlook and guidance

• Strong order backlog and robust demand across core and emerging segments provide visibility for future revenue growth.

• Management expects to mitigate risks from forex and commodity volatility through volume growth and price adjustments.

• No formal profitability guidance, but margin recovery is anticipated as market stabilizes and price hikes take effect.

• The sale of the Robotics business is expected to impact future segment results and overall business focus.