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Informist, Monday, Aug. 4, 2025

--ABB India: Expect pharma market to continue to grow in future

--CONTEXT: Comments by ABB India management in post-earnings analyst call

--ABB India: See some momentum in large projects in Oct-Mar

--ABB India: Base orders growth in electrification ops good post-COVID

--ABB India: Did not get any large order in Apr-Jun

--ABB India: Expect automation ops revenue to pick up in next two quarters

--ABB India: Have reasonable order log in automation business

--ABB India: Believe govt capex started picking up but yet to catch pace

--ABB India: Have 90% of business in India, most products highly localised

--ABB India: Expanding base in India; we welcome competition

--ABB India: Large projects pipeline reasonable now

--ABB India: Hoping to convert large order pipeline in Q3 or Q4

--ABB India: Minor part of 10% overall exports accounts from US ops

By P. Madhu Kumar

MUMBAI – ABB India Ltd. said it did not get any large orders in the June quarter but expects momentum for such orders to pick up in the second half of 2025-26 (Apr-Mar). The large order pipeline looks reasonable and they are likely to start generating revenue during the December and March quarters, the company's management said in a post-earnings call with analysts Monday. 

The management was confident about the company's quality-driven product base and said they continue to remain among the big players in the automation and electrification businesses. The company will also tap into two-tier and three-tier cities along with expanding its portfolio for customers offering large deals. The base orders require "channelising" of resources and marketing whereas the large orders are totally based on "hit rates", the management said. 

When asked about competition in the motion business, the company also said it welcomes competition. "This competition in one form or the other exists in many markets globally for us. And we deal with it and we know how to play this out."

The automation solutions provider said the government's capital expenditure has started picking up but is yet to gather pace. This will become a decisive factor for the company's as well as the sector's growth moving forward, it said. However, some caution remains on the private capital expenditure side. "...especially on the private capex, during these times, people become more cautious in terms of how much capital they want to commit, till the clarity comes in terms of domestic market as well as for the export participation for our customers." ABB India's comments come in the context of higher uncertainty caused by US tariffs.  

The company said 90% of its business is done in India and that it is a domestically-focused entity. Only a minor part of the remaining 10% of its overall exports business accounts for operations in the US. Due to its low exposure to the US market, ABB India said it may remain unaffected from the 25% tariffs imposed on India.

"...we don't see a major impact (of tariffs). And we hope this situation, like in other countries, will resolve itself given the tactics of negotiation in place. So, we don't see significant impact on us at this point of time." When asked if the risks of inflation will lead to any price hikes for ABB India's products, the management said "the market should be able to absorb it."

Talking about its various business segments, the management said the order log of its automation business is "reasonable" and expects the revenue from this operation to pick up in the next two quarters. This segment's revenue was slightly subdued to the extent of INR 5 billion, the management said.

Most business operations of ABB India, including motion electrification, saw a jump in its base orders after COVID-19. The company said its motion electrification business on regular scale is a good market to set up going forward, but not 'super strong' compared to the previous quarter.

The management expects the pharmaceutical market to grow in the near future and the company said it will continue to engage with its solutions for the sector. "...in robotics side, there are pharma majors who apply into certain applications as well." 

The company said its inventory stands at the highest at this point of time and roughly sums up to INR 18 billion-INR 23 billion. The company released its quarterly results Saturday. At 1436 IST, its shares were down almost 5.3% at INR 5,100 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Vandana Hingorani

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