ABB India shares tumble nearly 4% as Q2 profit slides 21% YoY

Shares of ABB India on Monday tumbled 3.7% to their day’s low of Rs 5205.10 on the BSE on Monday after the company reported a 20.7% year-on-year decline in its net profit to Rs 351.7 crore for the quarter ended June 2025 (Q2CY25), compared to Rs 443.5 crore in the same quarter last year.Revenue from operations during the quarter rose 11.8% to Rs 3,175.4 crore, up from Rs 2,829.9 crore reported in Q2CY24. The company’s EBITDA for the period stood at Rs 414 crore, marking a decline of 23.7% from Rs 542 crore in the corresponding quarter last year.

Meanwhile, the EBITDA margin contracted by 612 basis points to 13%, compared to 19.4% in the year-ago quarter.

A note by Motilal Oswal stated that the order inflows were weak during the quarter (-12% YoY) at Rs 30.4 billion. Base orders formed Rs 30.2 billion (+5% YoY), while large orders at Rs 130 million were impacted by subdued market conditions.
This resulted in the order book moving up to Rs 100.6 billion.

ABB also has mentioned that after strong growth periods, the company experienced a cyclic correction in ordering activity that is seen across multiple sectors, but it expects a gradual uptick in demand driven by easing inflation and deeper market reach.

According to management commentary, orders during the quarter declined due to the impact of large order timing, although base orders increased.
ABB India’s order backlog crossed Rs 10,000 crore in the first half of the calendar year 2025 for the first time. Profitability for the quarter was affected by forex volatility and one-off items.
“ABB’s results came lower than estimates on margin and PAT due to forex fluctuations and one-off exceptional expense during the quarter. Order inflows declined 12% YoY due to a cyclical correction in ordering activity across multiple segments. We would look out for order inflow and margin improvement commentary from the call for both electrification and robotics & motion segments,” said domestic brokerage firm Motilal Oswal in its report.

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