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Informist, Monday, Jul. 27, 2026

 

By Astha Oriel

 

NEW DELHI – Capital goods company ABB India Ltd. is likely to report a slight year-on-year growth in its revenue and profit for the June quarter of financial year 2026-27 (Apr-Mar), according to the brokerages tracking the company. Healthy execution of order book in the electrification and motion division, recent price hikes, an ease in quality control order-related costs, and stable currency movements are expected to support earnings. However, the rise in commodity prices, limited pricing power and rise in competition are likely to limit these gains, according to analysts.

 

The company's net profit is expected to rise over 6% on year and over 9% on quarter to INR 3.74 billion, according to the average of estimates by 10 brokerages. Nomura Equity Research has the highest estimate of net profit at INR 4.29 billion, and Elara Securities (India) Pvt. Ltd. has the lowest estimate at INR 3.47 billion. If realised, this will be the second consecutive quarter when the company sees an on-year increase in net profit. It will, however, be slower than the previous quarter. 

 

The company's net sales are expected at INR 33.82 billion, up nearly 5% on year and sequentially, according to the average of brokerage estimates. Nuvama Wealth Management Ltd. has the highest net sales estimate at INR 35.52 billion, and Motilal Oswal Financial Services Ltd. has the lowest estimate at INR 30.26 billion. This is likely to be the fifth consecutive quarter of an on-year increase in net sales.

 

Analysts expect the automation segment to post slower growth due to declining order backlog. In the March quarter, the electrification segment accounted for nearly 49% of the company's revenue, followed by the motion segment at nearly 40%, with the automation segment contributing the remainder. 

 

Nuvama Wealth Management Ltd. expects the company's order inflows to be beyond INR 38 billion-INR 40 billon from the current INR 35 billion-INR 40 billion. JM Financial Institutional Securities Pvt. Ltd. said the order inflows may witness deferrals due to the sharp run-up in commodity prices following the West Asia crisis, which can potentially impact base orders for ABB. 

 

ABB India's earnings before interest, tax, depreciation and amortisation are expected to be INR 4.41 billion, according to estimates of brokerages. In the year-ago quarter, the company's EBITDA was INR 4.14 billion. Nomura Equity Research has the highest EBITDA estimate at INR 5.15 billion, whereas Kotak Securities Ltd. has the lowest estimate at INR 4.04 billion.

 

Five brokerage firms expect the company's EBITDA margin to expand to 13.10-15.7% from 13% in the year-ago quarter. Prabhudas Lilladher expects the EBITDA margin to remain flat on year due to lower gross margin and higher employee expenses. Kotak Securities expect around 270 basis points on year contraction in EBITDA margin, reflecting continued impact of quality control order guidelines in electrification segment, competitive intensity in motion segment.

 

The brokerage also expects approximately 50 basis points headwind from higher commodity prices. Nomura Equity Research expects the gross margins to remain under pressure for ABB India due to inflationary pressures and reduced ability to pass on the full cost increase to customers amid moderate demand.

 

The company will announce June quarter earnings on Friday. Analysts will watch the management's commentary on sustainability of inflows across base and large orders, commodity prices, revival of execution across segments, competitive intensity in motors market, commentary on new product launches and capital expenditure.

 

At 1247 IST, shares of the company traded 1.6% lower at INR 7,207 on the National Stock Exchange. Shares of the company have risen nearly 13% since the company announced March quarter results on May. 8.

 

Of the 13 brokerage reports on the company available with Informist, seven have given a "sell" recommendation with an average target price of INR 5,884. This is 20% lower than the current share price. Two brokerages have given a "buy" recommendation with an average target price of INR 6,061 and four brokerages have given a "hold" rating with an average target price of INR 6,648. 

 

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

 

BROKERAGES	NET SALES	NET PROFIT	EBITDA
Nomura Equity Research	35.34	4.29	5.15
PhillipCapital (India) Pvt Ltd	33.92	4.00	4.89
Bank of America global research	33.52	3.88	4.39
Nuvama Wealth Management Ltd	35.52	3.86	4.62
Prabhudas Lilladher Pvt Ltd	35.03	3.86	4.59
Kotak Securities Ltd	32.78	3.56	4.04
Motilal Oswal Financial Services Ltd	30.26	3.52	4.06
HDFC Securities Ltd	33.10	3.50	4.10
JM Financial Institutional Securities Pvt Ltd	31.93	3.49	4.14
Elara Securities (India) Pvt Ltd	31.44	3.47	4.11
Average	33.28	3.74	4.41

End

 

Edited by Deepshikha Bhardwaj

 

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