ABB Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹3,559 Cr
verified against source
Revenue YoY
21%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
ABB India delivered a strong Q2 FY2026-27 with orders surging 50% YoY to Rs 11,900 crore backlog, while revenue grew 21% YoY supported by robust execution from the order book. PAT increased 8% YoY to Rs 566 crore despite EBITDA margin compressing to 12.8% from approximately 13% last year, pressured by elevated commodity prices (copper, silver) and forex volatility. Management noted a 2-3 percentage point benefit from operating leverage but faced ~3% headwind from material costs that couldn't be fully offset due to pricing lag inherent in short-cycle product businesses. Segment-wise, Electrification grew 77% on orders with data centers contributing 15-17% of total orders; Motion delivered 26% revenue growth driven by railways and metro; Automation grew 24% on orders with ~30% from services. Management expressed caution on near-term margin visibility due to persistent commodity headwinds but remains confident in converting the strong backlog (40% executable in next two quarters) and guiding capacity expansion to support 15-20% annual incremental growth. Key risks include subnormal monsoon impact on rural demand and geopolitical-related sluggishness in oil & gas capex.
Colored figures show movement against the previous available record.
Guidance to track
- 40% of Rs 11,900 crore order backlog executable in next two quarters with balance flowing through FY2027.
- Maintain 15-20% annual headroom in manufacturing capacity to capture incremental growth of 15-20% annually.
- Operating leverage benefits expected in next two quarters if commodity prices stabilize at current levels, though headwinds to persist.
- Quality Control Order (QCO) impact has relaxed with extended timelines and clarity on requirements now established.
Risks flagged
- Elevated copper, silver and metal prices continue to create 2-3 percentage point EBITDA margin headwinds with pricing pass-through lagging by 1-2 quarters due to competitive market dynamics.
- West Asia geopolitical tensions have caused oil & gas companies to pull back on services spending, though essential activities and announced projects continue with sluggish movement.
- Reverse auction tendering in system/infrastructure business prevents full price pass-through during periods of cost inflation, creating margin pressure in the project segment.
- Weak monsoon could impact rural demand and residential building segment decisions, creating uncertainty in near-term order flow from these verticals.
Key quotes
- The question could be is that so the scale benefits should technically be higher than the uh other than the expenses what you see compensating for other uh increases so that is something which we would like to see going forward but also the price increases to the market being and flow from being the flow products it always takes a lag it does not uh we the timing cannot not be matched with the material cost increases obviously price increase which will give to the market so therefore there's a lag which will come up.
- The good part is that the data centers which are helping us is continuing to give orders every time either directly or indirectly to channel partners.
- Most of the customers are aware of what's happening in the commodity price, but I think it's very important to very clearly explain to the customer what is in depth the content of silver or copper which is present in our uh products.
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