ABB India (500002) Q1 25/26 earnings summary

Executive summary

• Orders grew by 25% year-over-year, with strong contributions from data centers and railways, and Q1 CY2026 revenue increased 6% YoY, though slightly below expectations due to West Asia disruptions and commodity volatility.

• Profit after tax declined 25% YoY to INR 342 crore, impacted by higher input costs, rupee depreciation, and slower project execution, while a one-time gain from the Robotics business sale drove total profit for the period to ₹1,783.65 crore.

• Robust order backlog of INR 11,094 crore (+17% YoY) provides strong revenue visibility for upcoming quarters.

• Announced $75 million investment to expand manufacturing and R&D, including new product localization.

• Sustainability achievements include 82% reduction in Scope 1 and 2 GHG emissions and recognition in sustainability rankings.

Financial highlights

• Q1 revenue at INR 3,184 crore (+6% YoY), impacted by supply chain issues and commodity price increases; total income for the quarter was ₹3,283.70 crore.

• Profit from continuing operations after tax was INR 341.91 crore, with a significant one-time profit from discontinued operations (Robotics) of ₹1,658.48 crore.

• EBITDA margin declined to 12.8% (from 18.6% YoY); PAT margin at 10.7%.

• Material cost ratio rose to 61.4%, up from 61.3% sequentially and 3% higher YoY, driven by commodity inflation and rupee depreciation.

• Cash position remains strong at INR 6,042 crore (excluding robotics sale proceeds); including sale, cash is INR 7,600 crore.

Outlook and guidance

• Order pipeline remains robust across core and emerging sectors, especially data centers, renewables, and infrastructure, with strong demand expected to continue, supported by government CAPEX.

• Management expects continued strong order inflow and revenue execution, with temporary headwinds from geopolitical issues.

• Margin recovery anticipated as commodity and forex volatility stabilizes and price hikes take effect.

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