Skip to content

    A B B

    ABB
    Capital Goods·8 May 2026
    Management Summary

    ABB India reported a strong 25% order growth and 6% revenue growth to INR 3,184 crores for Q1 CY2026, supported by a robust INR 11,000 crores order backlog. Profitability was muted due to external factors like the West Asia crisis, metal price volatility, and rupee depreciation, which impacted material costs. The company announced a $75 million investment in manufacturing and R&D, and sees resilient demand across its diverse market segments, particularly in data centers and renewables.

    Highlights

    5

    • Overall order growth of 25% and base orders growth of 9%, indicating resilient demand across segments.

    • Strong total order backlog of INR 11,000 crores, providing good revenue visibility for coming quarters.

    • Cash position remains strong at INR 6,042 crores (excluding Robotics sale) or INR 7,600 crores (including Robotics sale).

    • Strategic investment of $75 million announced for expanding manufacturing and R&D in India.

    • First locally manufactured wind power converter dispatched from Nelamangala facility, opening new revenue streams.

    Concerns

    5

    • Revenue of INR 3,184 crores was slightly subdued, impacted by last-minute West Asia crisis affecting offtake and supplies.

    • Muted profit growth attributed to cascading impact of subdued revenue, metal price volatility (copper, silver, aluminum), and Indian Rupee depreciation.

    • Material costs were up by 3-3.5% YoY (Q1 '25 vs Q1 '26), contributing to margin pressure.

    • Electrification segment profitability declined from 21.4% to 15.2% due to revenue mix and higher material costs.

    • Automation division experienced subdued order intake and slower decision-making speed, though pipeline remains strong.

    Key financials

    Single quarter

    06 metrics
    1. 01Order Growth25%
    2. 02Base Order Growth9%
    3. 03Revenue₹3,184 Cr+6%YoY
    4. 04Material Cost Percentage61.3%
    5. 05Exchange Commodity Losses₹27.5 Cr

    Segment breakdown

    Order GrowthProfitability
    Electrification36%15.2%
    Motion22%12.8%
    Automation——
    Heatmap· 2 shared metrics

    Order Book

    high confidence

    Total Value

    ₹ 11,000 crores

    as of 2026-03-31

    quantified
    25.0% YoY

    Execution

    Electrification backlog of INR 4,000 crores is executed below the next 5 to 6 quarters.

    Composition

    Mix2 products
    • Data Center12.0%
    • Data Center16.0%

    Share of order book by product · partial disclosure (28.0% of book)

    Pipeline

    deal pipeline tcv

    Good opportunity pipeline in Automation, expected to convert into orders.

    "The company has a very solid order backdrop of INR 11,000 crores, providing good visibility for future revenues, despite some last-minute issues impacting current quarter's revenue execution."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Liquidity

    Cash ₹6,042 crores

    Cash position is INR 6,042 crores without the cash from the sale of Robotics, and roughly INR 7,600 crores including it.

    Revenue execution from order backlog

    next quarter
    CurrentINR 3,184 crores revenue, INR 11,000 crores backlog
    TargetImproved revenue conversion from backlog

    Why it matters

    To assess if the company can convert its strong order book into revenue more effectively, mitigating past execution headwinds.

    But overall, I think we are in a very solid position in terms of order backdrop. INR11,000 crores, I think this is a good backdrop, which gives the nice visibility for the coming quarters. That's what we can go through.

    How to verify

    key_financials.metrics[label='Revenue']

    Risks & concerns

    5
    RiskSeverity

    West Asia crisis impact on revenue execution

    Last-minute West Asia crisis stifled offtake and supplies, leading to subdued revenue. — Management acknowledged

    high

    Metal price volatility and currency depreciation

    Sharp depreciation of Indian Rupee against European and US dollar, along with copper, silver, and aluminum price volatility, impacted profitability. — Management acknowledged

    high

    Competition intensity

    Increased competition, especially from Japanese, Korean, and Chinese players, impacts market segments as the market grows. — Management acknowledged

    medium

    Slow decision-making in Automation sector

    While there is a good opportunity pipeline, the speed of decision-making in the Automation division is slower. — Management acknowledged

    medium

    Short cycle weakness

    Analyst noted short cycle weakness, but management stated robust demand in the last two quarters and no direct concern from West Asia crisis yet. — Analyst downplayed

    medium

    Q&A highlights

    8

    “So Renu, I think the first question is around the market. I think we have on the private capex, we have Kiran and Ganesh, who could give an electrification view of how the private capex happening, and we have Balaji. And so for the motion piece of it, I think they will all their commentary will also cover in a way directionally that's because we don't have Sanjeev on the line. So, but I but I think we will try to answer that from this, right?”

    Analyst questioned if customer sentiment and inflationary trends are impacting decision-making and project closures beyond process automation, which management partially addressed by segment leads.

    asked by Renu Pugalia

    2 min read5 chapters

    Detailed Narrative

    01

    Robust Order Growth Amidst External Headwinds

    ABB India reported a strong 25% overall order growth in Q1 CY2026, with base orders growing by 9%. This indicates resilient demand across its diverse market segments. Despite this, revenue for the quarter was INR 3,184 crores, a 6% year-on-year increase, but slightly subdued due to last-minute impacts from the West Asia crisis affecting offtake and supplies. The total order backlog stands at a healthy INR 11,000 crores, providing significant revenue visibility for the upcoming quarters.

    02

    Profitability Pressures from Commodity and Currency Volatility

    Profitability for the quarter was muted, primarily due to external factors. Material costs increased by 3-3.5% compared to Q1 CY2025, reaching 61.3-61.4% sequentially. This was exacerbated by the sharp depreciation of the Indian Rupee against the Euro and US Dollar, and volatility in metal prices (copper, silver, aluminum). The company also incurred INR 27.5 crores in exchange commodity losses, further impacting the bottom line.

    03

    Segmental Performance Overview

    The Electrification division saw a 36% increase in orders, driven by data centers and building segments, but its profitability declined from 21.4% to 15.2% due to revenue mix and higher material costs. The Motion division grew orders by 22% and reported revenues of INR 1,200 crores with a profitability of 12.8%, driven by rail, renewables, and private industries. The Automation division experienced subdued order intake, though management noted a strong opportunity pipeline expected to convert in future quarters, with a backlog of INR 2,100 crores.

    04

    Strategic Investments and Localized Manufacturing

    ABB India announced a $75 million investment aimed at expanding manufacturing and R&D capabilities within the country. This strategic capital allocation is intended to support new product pipelines and increase capacities for both domestic and export markets. A significant milestone was achieved with the dispatch of the first locally manufactured wind power converter from the Nelamangala facility, opening new revenue and order streams.

    05

    Focus on Data Centers and Sustainability

    The company highlighted strong demand from the data center space, which constitutes 12-16% of its total order book, covering low-voltage power distribution, UPS, drives, motors, and automation solutions. ABB also emphasized its sustainability efforts, reporting an 82% reduction in Scope 1 and 2 greenhouse gas emissions and a 46% increase in water recyclability. The company secured rank 3 in the Electrical & Electronic sector for sustainable companies.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.