Prime Highlights
- ABB India expects volume-led growth as margin recovery takes longer.
- Data centres account for 15-17% of the order book.
Key Facts
- ABB India makes industrial automation, electrification and engineering products.
- The company plans ₹300-350 crore in annual organic capex.
Background
ABB India expects growth to remain volume-led in the near term as higher commodity costs, currency swings and geopolitical uncertainty continue to pressure margins.
CFO TK Sridhar said the company expects margin recovery to take more time. He said ABB India remains confident of returning to earlier margin levels once market volatility eases.
The company reported a standalone net profit of ₹362.3 crore for the second quarter of calendar year 2026, up 3% from ₹352 crore a year earlier. Revenue reached a record ₹3,559 crore for the quarter, while first-half revenue stood at ₹6,743 crore. Both periods posted double-digit growth.
EBITDA rose 11.4% year-on-year to ₹447.1 crore, but the margin fell to 13% from 14% in the year-earlier period. Sridhar attributed the pressure mainly to higher material and commodity costs and foreign exchange volatility.
ABB India’s order inflows rose 50% during the quarter. This was lower than the 81% growth reported by the ABB Group. Management said the gap mainly came from two large opportunities booked at the group level for strategic reasons, including a marine and ports project.
The company plans to invest ₹300-350 crore every year in organic capacity expansion. It aims to keep capacity utilisation at 85-90%, leaving room for further growth.
Data centres remain a major growth driver, accounting for around 15-17% of the order book. ABB India still expects strong demand from the segment.