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View Promises →ABB India Limited — Q2 FY26
ABB India reported 14% YoY revenue growth in Q3 FY2025-26, driven by a 13% base order growth across divisions, though total orders fell 3% due to absence of large contracts.
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ABB India reported 14% YoY revenue growth in Q3 FY2025-26, driven by a 13% base order growth across divisions, though total orders fell 3% due to absence of large contracts. Profit after tax declined 7% YoY, with margins pressured by unfavorable revenue mix, intensified competition, QCO-related import costs, and forex volatility. Management highlighted delayed investment decisions and sluggish capex formation, but noted green shoots in base orders and strong demand in renewables, data centers, and process industries. Guidance remains cautious: QCO headwinds may persist for 3-4 quarters, and margin recovery hinges on market normalization. Key risk: potential Chinese import surge could further pressure pricing and order conversion.
एबीबी इंडिया ने जुलाई-सितंबर 2025-26 तिमाही में पिछले साल की तुलना में 14% ज्यादा कमाई की। इसकी वजह सभी विभागों में 13% ज्यादा छोटे ऑर्डर मिलना था, लेकिन बड़े ऑर्डर न मिलने से कुल ऑर्डर 3% घट गए। मुनाफा 7% कम हुआ क्योंकि कम मुनाफे वाले उत्पाद ज्यादा बिके, प्रतिस्पर्धा बढ़ी, कच्चे माल पर लगे नए नियमों (QCO) से लागत बढ़ी और डॉलर के मुकाबले रुपया कमजोर हुआ। कंपनी का कहना है कि निवेश के फैसले टल रहे हैं और पूंजी खर्च धीमा है, लेकिन छोटे ऑर्डर बढ़ रहे हैं और नवीकरणीय ऊर्जा, डेटा सेंटर व उद्योगों में मांग मजबूत है। आने वाले 3-4 तिमाहियों तक QCO की मुश्किलें रह सकती हैं और मुनाफा सुधरने के लिए बाजार सामान्य होना जरूरी है। चीन से सस्ते माल की बाढ़ आने पर कीमतें और ऑर्डर पर दबाव बढ़ सकता है।
Promises0 met · 3 missedRisks4 trackedTranscriptfull text
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QCO-driven cost inflation
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Base Order Growth
13%
+13% YoY
Base orders (short-cycle) grew 13% YoY, indicating healthy underlying demand despite large order delays.
Order Backlog
₹9,895 Cr
Flat YoY
Backlog provides 12-18 months revenue visibility; 70% comprises shorter-cycle orders.
Cash Balance
₹4,500 Cr
Flat QoQ
Strong cash position supports strategic inventory buildup for QCO compliance and potential M&A.
Large Orders (Quarter)
₹400 Cr (cumulative 4 quarters)
Down vs prior year
Large order inflow slowed; only ₹400 Cr in last four quarters vs. higher base, reflecting capex delays.
What Changed vs Last Quarter
NEW
QCO impact to persist 3-4 quarters
Management expects QCO-related margin headwinds to continue for another 3-4 quarters as certification processes remain slow.
NEW
Double-digit revenue growth ambition
Management aims to maintain double-digit revenue growth trajectory, supported by base orders and backlog execution.
NEW
Focus on bolt-on acquisitions
ABB India is actively pursuing bolt-on acquisitions to complement existing portfolio and enter new segments.
DROPPED
QCO compliance to impact margins near-term
Management expects continued mix of imported and localized content over next 6 months to meet QCO deadlines, pressuring margins.
DROPPED
Large order pipeline conversion expected in H2
Management sees reasonable pipeline of large projects, expecting conversion in Q3/Q4 CY2025.
DROPPED
Margin band of 12-15% remains target
Management reiterated the 12-15% PAT margin band as a directional target, but noted near-term headwinds from QCO and forex.
NEW RISK
QCO-driven cost inflation
Mandatory BIS certification for locally manufactured products forces imports, increasing material costs and forex exposure.
NEW RISK
Delayed large order finalization
Customers are deferring capex decisions, leading to sluggish large order inflows and potential revenue growth moderation.
NEW RISK
Margin pressure from mix and competition
Shift toward lower-margin segments and intensified competition have compressed profitability, with no near-term recovery visibility.
RISK GONE
QCO compliance costs and margin pressure
QCO guidelines require imported content to meet delivery commitments, increasing costs and pressuring margins for next few quarters.
RISK GONE
Forex volatility impact
Euro and CHF appreciated >10% in the quarter, causing ₹56.5 crore forex loss; management noted difficulty in passing on volatility to customers.
RISK GONE
Delayed private capex recovery
Large order decisions postponed due to global uncertainty; management expects recovery only by next year.
Fast read
Guidance and risk preview
Management expects QCO-related margin headwinds to continue for another 3-4 quarters as certification processes remain slow.
Mandatory BIS certification for locally manufactured products forces imports, increasing material costs and forex exposure.
View Risks →