ABB India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
ABB India's recent performance reflects a strong demand environment, particularly in the Electrification segment, driven by robust order inflows and a healthy backlog. Management's focus on capacity expansion at the Nelamangala facility is crucial for capturing long-term demand, especially in data centers. However, near-term margin pressures persist due to commodity inflation, forex volatility, and a lag in price transmission, which could hinder profitability. Vista's financial outlook anticipates stable revenue growth aligned with historical performance, but margins are expected to remain under pressure, reflecting the competitive landscape and rising input costs. The automation industry is in a growth phase, supported by increased private sector investments, yet competitive pressures may challenge margin recovery. Over the next 12-24 months, key opportunities include leveraging the strong order backlog and expanding into high-growth segments, while watchpoints include managing input cost inflation and geopolitical uncertainties that could impact execution timelines
Why We Like This Stock
- Strong order inflows and a record backlog, particularly in the Electrification segment, provide robust revenue visibility
- Strategic capacity expansion at the Nelamangala facility is expected to support long-term growth in high-demand sectors like data centers
- Continued investments in innovation and localization are likely to enhance competitive positioning
Things To Watch Out For
- Margin pressures are expected to persist due to elevated input costs and a lag in price pass-through
- Geopolitical uncertainties and forex volatility could impact revenue recognition and execution timelines
- Competitive intensity in the automation sector may hinder margin recovery and profitability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 10,447 | 12,188 | 13,203 | 14,118 | 16,364 |
| Profit Before Tax (Cr.) | 1,666 | 2,519 | 2,230 | 2,158 | 2,728 |
| PBT Margin | 15.9% | 20.7% | 1689.0% | 15.3% | 16.7% |
| Net Profit (Cr.) | 1,234 | 1,880 | 1,668 | 1,619 | 2,046 |
| Earnings Per Share | 58.3 | 88.7 | 78.7 | 76.4 | 96.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BofA | ▼ Reduce | 5,200 | 11-May-2026 |
| Elara Capital | ▼ Reduce | 6,180 | 10-May-2026 |
| Emkay Global | ▼ Reduce | 7,600 | 03-Aug-2026 |
| HDFC Securities | ► Add | 5,950 | 10-Apr-2026 |
| HSBC | ▼ Reduce | 5,400 | 03-Aug-2026 |
| JPMorgan | ► Neutral | 6,751 | 03-Aug-2026 |
| Jeffries | ▼ Underperform | 5,915 | 11-May-2026 |
| Macguire | ▼ Underperform | 5,470 | 17-Jul-2026 |
| Motilal Oswal | ► Neutral | 6,700 | 01-Aug-2026 |
| Nomura | ▼ Reduce | 5,958 | 23-Apr-2026 |
| Prabhudas Liladhar | ► Hold | 6,944 | 03-Aug-2026 |
| UBS | ▲ Buy | 8,030 | 17-Jul-2026 |
Company Overview
Show Company Profile
ABB India Limited develops and sells products and system solutions to utilities, industries, channel partners, and original equipment manufacturers in India and internationally. It operates through Motion, Robotics and Discrete Automation, Electrification, and Process Automation segments. The Motion segment offers motors, generators, and drives that provide power, motion, and control for a range of automation applications; as well as solutions and related services. Its Robotics and Discrete Automation segment provides value-added solutions in robotics, machine, and factory automation. The Electrification segment offers a range of digital and connected solutions for low- and medium-voltage applications, including EV infrastructure, solar inverters, modular substations, distribution automation, power protection, wiring accessories, switchgear, enclosures, cabling, sensing, and control. Its Process Automation segment provides products, systems, and services, such as turnkey engineering, control systems, measurement products, life cycle services, outsourced maintenance, and industry specific products for the optimization of the productivity of industrial processes in oil and gas, power, chemicals and pharmaceuticals, pulp and paper, metals and minerals, marine, and turbocharging industries. The company was formerly known as ABB Limited and changed its name to ABB India Limited in June 2013. ABB India Limited was incorporated in 1949 and is headquartered in Bengaluru, India. ABB India Limited operates as a subsidiary of ABB Asea Brown Boveri Ltd