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ABB India’s share price slipped 7 per cent today (August 4, 2025) after its Q2 FY25 results revealed a rare drop in profit. Revenue grew well, yet currency swings and project-related claims dented margins, leaving investors to assess whether valuations still hold water.
Q1 FY26 results at a glance
| Metric | Q2 FY25 | Q2 FY24 | YoY change |
| Revenue from operations | Rs 3,175.4 crore | Rs 2,830.9 crore | 12.2 per cent |
| Total income | Rs 3,175.4 crore | Rs 3,159.6 crore | 0.5 per cent |
| EBITDA | Rs 414 cr | Rs 541 cr | - 23.5 per cent |
| EBITDA margin | 13 per cent | 19.1 per cent | - 610 bps |
| Net profit | Rs 352 crore | Rs 443 crore | - 20.7 per cent |
Reasons behind the numbers
Revenue growth was broad‑based across segments, but profit took a hit from two key factors: Foreign‑exchange losses (Rs 56.5 crore) and a Rs 39.5 crore customer claim tied to the Electrification business. Together, they shaved off around Rs 100 crore from operating profit, leading to a sharp EBITDA and net profit contraction despite healthy topline growth.
What it means for investors
Investors need to weigh ABB India’s high return ratios (ROE and ROCE) and premium growth fundamentals against the risks posed by valuation and volatile profit delivery:
- Growth visibility remains strong, as the order backlog surpassed Rs 10,000 crore in Q2. The pipeline across energy, transit and industrial automation continues to support revenue momentum.
- Earnings volatility poses caution. Margins are sensitive to forex and one‑off projects, making profits less stable than peers.
- Valuation risk looms, with P/E and P/B multiples trading significantly above industry along with high expectations baked in.
The bottom line
ABB India shows strong sales momentum and solid fundamentals, but the Q2 earnings wobble signals that premium valuation comes with performance accountability. For investors with a growth‑tilted mindset, it remains a candidate—but only if execution stays consistent and valuation pressure eases.
About the company
ABB India Ltd is a Bengaluru‑based large‑cap industrial machinery and automation firm, operating across four core segments: Motion (motors, drives), Electrification (EV infrastructure, wiring, switchgear), Robotics & Discrete Automation and Process Automation. It serves sectors such as utilities, industrial and infrastructure.
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