Earnings Outlook
Slow order execution likely to weigh on ABB India
This story was originally published at 10:22 IST on 5 May 2025
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By Narayana Krishna
HYDERABAD - Slower pace of order book execution and weak order accruals are likely to influence ABB India Ltd.'s March quarter earnings, though the company is expected to continue reporting net profit and revenue growth for the quarter, according to analysts.
The engineering and automation services company is expected to report an 8% year-on-year rise in its March quarter net profit to nearly INR 5 billion, while its revenue is seen up 9% on year at INR 33.7 billion, according to an average of estimates from seven brokerages. Sequentially, the company's net profit is expected to fall 6% while revenue is seen flat, the estimates show.
Analysts' estimates for ABB's March quarter net profit range from a low of INR 4.4 billion, projected by Equirus Securities Pvt. Ltd., to a high of INR 5.2 billion, estimated by Elara Securities (India) Pvt. Ltd. Revenue estimates vary from INR 32.6 billion, the lowest by Equirus, to INR 35.7 billion, the highest by Elara. The company is scheduled to announce its March quarter earnings on Friday.
Elara Securities, which projected the highest earnings estimates for the quarter, said execution of the order backlog is expected to drive ABB's March quarter revenue growth to 16% on year. Equirus, which projected the lowest estimates, said weak order accruals and the high base of last year may limit revenue growth to 6% on year.
Nomura Equity Research has projected a moderation in ABB's order book execution growth, as base order backlog accretion has witnessed a slowdown for the quarter.
Motilal Oswal Financial Services Ltd. said ABB's revenue growth is likely to be largely flat quarter-on-quarter and is expected to grow 9.5% year-on-year. The moderation in growth is due to lower order inflows during 2024 and the transient impact of slow government and private capital expenditure, Motilal Oswal said.
Projecting a similar view, Kotak Institutional Equities said revenue growth is expected at 8% on year, while its industrial automation revenues are likely to decline on a high year-on-year base.
ABB India provides industrial engineering, electrification, automation, and robotics services across industries.
MARGINS
ABB India's March quarter earnings before interest, tax, depreciation and amortisation margin may see some pressure due to increased raw material costs and higher operating expenses. HDFC Securities has projected a 28-basis-point year-on-year and a 204-bps sequential fall in ABB's March quarter EBITDA margin to 18.1%. Equirus expects margins to contract 175 basis points on year and 294 basis points quarter-on-quarter to 16.6%.
Nuvama said for ABB to sustain operating profit margins at 17–18%, quarterly order inflows, which are currently at INR 32 billion to INR 35 billion, need to increase to INR 40 billion to INR 45 billion over 2025 and 2026.
At 1013 IST, shares of ABB India were at INR 5,475 on the National Stock Exchange, up 0.4% from the previous close. The ABB India stock has gained nearly 7% in the past 30 days but lost nearly 21% so far in 2025.
Market participants will watch out for ABB's order inflows in the coming quarters, competitive intensity in new-age businesses such as data centres and artificial intelligence-linked projects, and projections for private sector order inflows.
Following are the Jan-Mar earnings estimates for ABB India Ltd. based on reports from seven brokerage firms in the descending order by the estimate of net profit:
Brokerage name | Net Sales | Net Profit | EBITDA |
| --in million rupees-- | ||
Elara Securities (India) Pvt Ltd | 35,730.00 | 5,157.00 | 6,374.00 |
Motilal Oswal Financial Services Ltd | 33,733.00 | 5,112.00 | 6,286.00 |
Kotak Institutional Equities | 33,383.00 | 5,059.00 | 6,198.00 |
HDFC Securities Ltd | 34,000.00 | 5,000.00 | 6,100.00 |
Nomura Equity Research | 33,000.00 | 4,983.00 | 6,050.00 |
Nuvama Wealth Management Ltd | 33,105.00 | 4,959.00 | 6,124.00 |
Equirus Securities Pvt Ltd | 32,638.00 | 4,407.00 | 5,417.00 |
Average | 33,655.57 | 4,953.86 | 6,078.43 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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