ABB India Q1CY26 profit falls 25% on margin pressures, higher input costs

ABB India reported a 25 per cent decline in profit after tax to ₹342 crore for Q1 CY2026. The company attributed the decline in profitability to an adverse revenue mix, execution of lower-margin orders, elevated input costs amid forex volatility, and slower project execution.

The Electrification segment had benefited from the revenue conversion of a large order in Q1 CY2025. The Motion business experienced price declines across some markets and products, while Automation profit was softer year-on-year due to lower revenues. Geopolitical tensions in West Asia led to limited export disruptions but materially increased logistics complexity across the value chain, resulting in higher costs and elongated supply timelines.

Orders

Total orders in the first quarter stood at ₹4,280 crore, up 25 per cent year-on-year, reflecting strong demand momentum. Electrification and Motion delivered robust order growth, supported by sustained industrial activity in India. Automation performance was softer, reflecting limited opportunities in select core segments. Overall, order trends underscored resilient domestic fundamentals and healthy customer activity levels.

The quarter saw rising opportunities from emerging industries such as data centres and renewable energy. However, orders from railways and metros, as well as core industries including metals and mining, energy and chemicals, and food and beverage, witnessed limited growth on a higher base.

Revenues rose 5.7 per cent year-on-year to ₹3,184 crore.

Commenting on the quarter, Sanjeev Sharma said revenue growth was driven by demand momentum across emerging and core industries. “Our effective conversion of market opportunities into higher order inflows has further strengthened our diversified order book and enhanced revenue visibility,” he said.



During the quarter, ABB announced a $75 million investment to expand manufacturing and R&D capabilities for critical segments. The expansion will support infrastructure sectors including renewable energy, metro rail, and data centres across five locations.

ABB India also dispatched its first locally manufactured wind power converter from its Nelamangala facility, marking a milestone in the integration of Gamesa Electric’s wind technologies and reinforcing India’s role in global wind manufacturing.

The company launched the ARTU Formula family, a next-generation low-voltage switchgear platform for industrial and commercial applications. ABB India also completed the automation, monitoring, and cybersecurity upgrade of BPCL’s 937-km Vadinar–Bina crude pipeline using the ABB Ability SCADAvantage system. ABB-supplied electrification and drives solutions at the Noida International Airport also became operational during the period.

Looking ahead, the company said geopolitical tensions, including those in West Asia, could intermittently impact energy prices, input costs, logistics, and near-term margins. However, a constructive macroeconomic environment, along with disciplined execution and a strong order backlog, is expected to support ABB India’s performance.

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