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Informist, Thursday, May 7, 2026

By Astha Oriel

NEW DELHI – Capital goods company ABB India Ltd. is likely to post a double-digit year-on-year increase in its bottom line for the March quarter, according to brokerages tracking the company. The company's top line is expected to rise in single-digit on year due to low base of the order inflows in the previous quarters.

The company's net profit is expected at INR 5.50 billion, up nearly 16% on year, according to the average of estimates from 10 brokerages. The Bengaluru-based company's net sales are expected at INR 34.38 billion, up nearly 9% on year and down more than 3% on quarter, according to the average of estimates from 11 brokerages. The company will report March quarter earnings on Friday. 

The highest estimate of net profit is INR 16.12 billion by YES Securities (India) Ltd. and the lowest of INR 3.50 billion by Elara Securities (India) Pvt. Ltd. Emkay Global Financial Services Ltd. has the highest estimate of net sales at INR 35.99 billion, whereas the lowest estimate is INR 31.80 billion by Elara Securities. 

Analysts expect an improvement in execution of order in electrification and motion business to drive the company's revenue. The company's revenue from process automation business is likely to remain weak due to a deteriorating order book, Equirius Securities Pvt. Ltd. said in an earnings preview report. YES Securities expects a 10% on-year and 13% on-year growth in electrification and motion business, respectively, to drive the company's revenue. The divestment of the company's robotics business in January is also likely to boost the company's revenue, YES Securities said.  

For the December quarter, electrification business accounted for nearly 45% of ABB India's revenue. The motion business accounts for nearly 34% of the company's revenue. Process automation accounts for more than 18%, whereas robotics and discreet automation accounts for nearly 4% for the company's revenue.

Nomura Equity Research and Kotak Securities expect the company's order inflows to be INR 45 billion and INR 40 billion for the March quarter, respectively. In the year-ago quarter, the company received orders worth INR 37.51 billion. 

The company's earnings before interest, tax, depreciation, and amortisation are expected at INR 5.31 billion, unchanged from the December quarter, according to the average of estimates from 11 brokerages. Analysts expect the company's EBITDA margin to decline by 220-280 basis points on-year in the March quarter, weighed down by high raw materials cost, higher import content in raw materials and the depreciation of rupee against the US Dollar.

"Copper, aluminum, and hot rolled coil prices have increased by ~16%/~13%/~13% quarter-on-quarter during Jan-Mar'26. Since ~50-55% of EPC (engineering, procurement, and construction) order books are fixed-price in nature, a sustained rise in commodity prices could weigh on margins, even with some protection from hedging and price variation clauses," Motilal Oswal Financial Services Ltd. said in its earnings preview report. 

Kotak Securities and Elara Securities expect issues related to quality control orders in the electrification business to drag the company's EBITDA margin. 

Analysts will watch management's commentary on order inflow trajectory, given the moderation in fresh capex at macro level and slowing global demand, exports and services performance, impact of issues related to quality control orders, and normalized margins for motion and electrification segments, and any impact on operations from West Asia conflict.

Wednesday, shares of the company closed nearly 2% lower at INR 7,182. Shares of the company have increased nearly 20% since the company reported its December quarter results on Feb. 19. 

Of the 12 brokerage reports on the company available with Informist, five brokerages have given a 'buy' rating with an average target price of INR 6,298 per share. This is more than 12% lower than the current share price. Two have given a 'hold' rating with an average target price of INR 6,330 per share, and five brokerages have given a 'sell' rating. 

Following are the March 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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