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Informist, Tuesday, Feb. 11, 2026

By Astha Oriel

MUMBAI – Capital goods company ABB India Ltd. is likely to post a double-digit year-on-year decline in its bottom line for the December quarter, according to brokerages tracking the company. The company's top line is expected to remain flat due to the high base of its order inflows in the previous quarters.

The company's operating margin is likely to contract due to the high cost of raw materials such as copper, an increase in competition especially in the motor and electrification business verticals, as well as higher import content in raw materials. The depreciation of the rupee against the dollar is also expected to hit the company's operating margin, according to analysts.

The company's net profit for the December quarter is expected to be INR 4.35 billion, down over 18% on year but up more than 6% on quarter, according to the average of estimates from 10 brokerages. The net profit was INR 5.32 billion for the year-ago quarter. The highest estimate of net profit is INR 4.70 billion by Kotak Securities Ltd., whereas the lowest estimate is INR 4.07 billion by Nomura Equity Research.

The Bengaluru-based company's net sales are expected to be INR 34.38 billion, up over 2% on year and nearly 4% on quarter, according to the average of brokerages' estimates. The company's revenue was INR 33.65 billion for the year-ago quarter. The highest estimate of top line is INR 36.81 billion by Elara Securities (India) Pvt. Ltd., whereas the lowest estimate is INR 32.03 billion by Emkay Global Financial Services Ltd.

Nomura expects the company's order inflow to be INR 33.9 billion, up nearly 26% on year and nearly 5% on quarter. The company's order inflows were INR 26.95 for the year-ago quarter. 

Kotak Securities and Elara Securities expect electrification segment to drive revenue growth. Prabhudas Lilladher Pvt. Ltd. expects ABB India's revenue to be driven by healthy execution of order book across robotics and motion business, which will be partially offset by likely weakness of order book in the electrification segment.

For the September quarter, electrification business accounted for nearly 42% of ABB India's revenue. The motion business accounts for more than 35% of the company's revenue. Process automation accounts for around than 18%, whereas robotics and discreet automation accounts for more than 5% for the company's revenue.

The company's earnings before interest, tax, depreciation, and amortisation are expected at INR 5.31 billion, down nearly 17% on year, but up almost 27% on quarter, according to the average of brokerages' estimates. The company's EBITDA was INR 6.39 billion in the year-ago quarter. The highest estimate of EBITDA is INR 5.66 billion by YES Securities (India) Ltd., whereas the lowest estimate is INR 4.61 billion by Emkay Global Financial Services Ltd.

Nomura, Prabhudas Lilladher, and HDFC Securities Ltd. expect the company's EBITDA margin to decline to 15.3-15.4% for the December quarter from 19% a year ago. Motilal Oswal and Kotak Securities expect the company's EBITDA margin around 19.5%.

Nuvama said that short-cycle momentum in base orders and margins are expected to sustain order inflows from new-age areas such as data centres, electronics, warehouse or logistics, railways or metros etc. These areas are driving growth and are likely to offset weakness of order inflows from moderate growth areas.

Analysts will watch the management's commentary on guidance on order inflows, prospects of large orders, pricing power, competition in the motors segment, launch of new products, and update on potential robotics divestment.

The company will announce December quarter results on Feb. 19. Shares of ABB India ended Wednesday at INR 5,825 apiece on the National Stock Exchange, down nearly 1%. Shares of the company have risen 16% since it reported its September quarter earnings.

Of the 10 brokerage reports on the company available with Informist, five have a 'buy' recommendation on the stock with an average target price of INR 5,672 per share. This is almost 3% lower than the current market price. One has a 'hold' recommendation on the stock with target price of INR 5,230 per share. Four have a 'sell' call on the stock with an average target price of INR 4,873 per share.

Following are the December quarter earnings for ABB India Ltd. from 10 brokerage firms in descending order of the estimate of net profit in INR billion:

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Edited by Akul Nishant Akhoury

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