Engineering major ABB India is likely to report a mixed quarter as slower order inflows and muted margin performance offset steady revenue growth from core segments. The company is scheduled to announce its earnings on May 9. ABB India provides electrification, automation, motion, and digital solutions to the industrial, utility, and infrastructure sectors.
According to a Moneycontrol poll of five brokerages, revenue for Q1CY25 (or Q4FY25) is expected to increase by 11 percent year-on-year (YoY) to Rs 3,080 crore. ABB India follows a calendar year earnings cycle. Net profit is projected to rise 9 percent YoY to Rs 502 crore, while the EBITDA margin is expected to remain flat at around 18.3 percent, reflecting stable but unexciting operating performance.
Among brokerages, PL Capital has the most conservative estimates, forecasting a 12 percent YoY rise in revenue and just 6 percent growth in net profit, citing caution over near-term capex trends. Elara Capital remains the most bullish, projecting 8 percent YoY growth in net profit (despite a 6 percent quarter-on-quarter decline) and 10 percent YoY revenue growth.
The stock has fallen around 23 percent over the last one year.
What will impact the earnings?
The company noted that it had benefited from strong demand for premium products and saw growth potential in industries like chemicals, pharmaceuticals, automotive, power, water, electronics, and data centres. ABB is also exploring emerging fields such as green hydrogen and battery storage.
Here's what brokerages believe can impact the Q1 earnings.
Strong demand in select sectors
Most brokerages remain positive on ABB’s exposure to high-growth sectors like data centres, renewables, and railways. This demand is expected to support overall growth, even if the broader industrial recovery remains uneven.
Weak order inflows
Motilal Oswal Financial Services noted that lower order inflows during early 2024 and sluggish capex may limit near-term revenue momentum. Order pipeline trends will be a critical monitorable for future growth visibility. Nuvama said that ABB will need to ramp up its quarterly order inflow run rate to Rs 40–45 billion in CY25–26 (from Rs 32–35 billion currently) to sustain topline momentum and drive operating leverage. Efficient execution will be key.
Input cost pressure
While ABB has maintained margins in the 17–18 percent range, rising input costs and product mix changes could pressure profitability. Motilal Oswal expects some sequential margin moderation due to higher input costs and slower demand.
What will analysts watch out for?
Analysts will keep an eye on management commentary on order flows and capex plans for the rest of the year.
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