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Informist, Friday, Jul. 31, 2026

By Astha Oriel and Rajesh Gajra

MUMBAI/NEW DELHI – ABB India Ltd. expects commodity prices to remain elevated over the next few quarters, management said at a post-earnings analyst conference call. The margin for the company's electrification segment narrowed to 14.8% in the June quarter from 16.1% a year earlier due to higher copper and silver prices and the depreciation of the rupee.

The company implemented two price hikes during the quarter as corrective measures to offset margin pressure from higher input costs. "This is really supporting us in terms of trying to compensate the EBIT, which is coming into picture. When I look at the acceptance, yes, there have been a lot of challenges in the market with respect to the customer accepting the price... customers for sure are quite logical in accepting something as a product with very high reliability and sustainable performance. I think they are coming back to us and paying the price that we need," a company official said. 

For its flow measurement products and services business, the company has already passed on commodity price increases and expects to see that reflected in the September quarter, management said.

The management said the company was well positioned to leverage megatrends from the emerging industries division, which covered renewables, electronics, and data centres, and also in the infrastructure and transport division. In the core industries division, although the growth rate may be slower, the weightage of the orders from this division is "very heavy", which presents the company with as much growth in order inflows as the other two divisions, the management said. The company's core industries division covers sectors such as food and beverages, textiles, automotive, plastic and rubber, cement, pulp and paper, and metals and mining.

The company said its core sector's downstream operations were sluggish in the June quarter amidst the West Asia crisis. "So I would say that little bit of sluggishness definitely on the refining side, on the downstream, other core industries, which had a direct relationship with the crude oil prices... We did see a little bit of a sluggish moment, but I would not say that we pressed the panic button. Since the crude oil prices are still settling, even though the situation is quite volatile," a company official said. Of the INR 118.98 billion order backlog as of Jun. 30, the company will consume at least 40% in the next two quarters' revenue.

The company received orders worth INR 43.63 billion during the June quarter, up 50% on year. Of this, 15% were from the metal and mining segment, 9% from the oil and gas segment, 8% from the buildings and infrastructure segment, 6% from the renewables segment, and the rest from other segments, the management said. 

For its motion business, the company has long-term contracts with railway exposures and those are not difficult. "I think there's only a time element of execution based on the configuration being changed by the railways," a senior official said.

For the June quarter, the company's net profit rose 3% on year to INR 3.62 billion. Its revenue from continuing operations for the quarter rose 21% on year to INR 35.59 billion. Friday, shares of the company closed 0.1% lower at INR 7,284.50 on the National Stock Exchange. The company announced the June quarter results after market hours. End

Edited by Saji George Titus

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