ABB India reported steady underlying demand during the July–September quarter, driven by a 13 percent rise in base orders even as delays in large project finalisations softened overall order growth, the management said in a Q3CY25 earnings call on November 7. Revenue climbed 14% for the period, supported by a healthy backlog of Rs 9,895 crore. The company follows a January-December reporting calendar, and its Q3CY25 corresponds to Q2FY26.
CFO TK Sridhar said the base-order trend reflects broad market engagement. “We have grown for the quarter a 13% growth...This is pretty healthy because it gives us the visibility of revenue conversions going forward and (we are) just not depending on the large orders which are there in the backlogs at this point of time.” He added that the growth is “spread across all the business divisions in the respective business segments.”
The company executed strongly against its order book, with ABB India's Sridhar noting the backlog figure of nearly Rs 9,900 crore and stating, “Everything are lined up for execution in the few quarters to come.”
Managing Director Sanjeev Sharma described the current investment climate as a period of cooling after several years of strong expansion. “We have had a very good cycle post-COVID, wherein we enjoyed very good growth both in expansion of orders, revenues, profitability and all elements.” However, he acknowledged a recent easing. “At this point of time for last few quarters, now there is sluggishness in the market in terms of CapEx formation as well as expansion projects," he explained but added that the cycle is expected to return. “The growth is going to come back and we will ride that cycle," he said.
ABB India noted stable activity across multiple sectors, including renewables, cement, steel, and data centers. Sharma said the company’s positioning across 23 market segments enables it to benefit quickly when growth cycle comes back. He highlighted that once order formation restarts, “it will directly reflect in our books, in the orders, revenues as well as in the capacity utilization.”
Margins for the quarter were affected by product mix, competition, foreign exchange swings, and the ongoing impact of Quality Control Order (QCO) rules, which have forced the company to temporarily switch from locally developed components to imported ones due to certification bottlenecks. Sridhar explained,“We need to serve our customers because we have committed delivery lines for the backlogs and we have done a conscious strategic stocking up… and we have no other option but to use imported material to serve the customers," he said.
He added that certification delays are tied to limited BIS laboratory capacity and high industry demand. “It could continue to another two to three quarters minimum.”
Looking ahead, the management expressed confidence that base-order strength and ongoing execution in its Electrification and Motion businesses will support revenue growth. Sharma said, “We will see an uptick of revenue growth with that as we go forward both in Electrification and Motion business.” He added that the remaining order flow in these divisions will continue to push the revenues upwards.
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