ABB India (ABB.NS): JuneQ26: A Mixed Bag; Risk-Reward Unfavourable

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ABB India (ABB.NS): JuneQ26: A Mixed Bag; Risk-Reward Unfavourable

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02 Aug 2026 16:32:57 ET │ 15 pages

ABB India (ABB.NS)

JuneQ26: A Mixed Bag; Risk-Reward Unfavourable

CITI'S TAKE

Sell JuneQ presented a mixed picture – orders grew +50% YoY, supported in

part by a favourable base, though they were softer than the heightened Price (31 Jul 26 15:30) Rs7,284.50

expectations post the parent disclosure of India region orders (of +81%). Target price Rs5,750.00↑

Forex adjusted EBITDA fell ~290bps YoY to 12.6%; EBITDA at Rs4.5bn from Rs5,700.00

missed our estimate by 5% though revenue was 5% ahead. RM pressures Expected share price return -21.1%

and import dependencies are limiting the benefit of demand resulting in a) Expected dividend yield 0.5%

-ve impact of INR depreciation; b) higher freight costs (other expenses up

Expected total return -20.6% +22% YoY in JuneQ limiting operating leverage benefits). Further,

Market Cap Rs1,543,647M management flagged in its earnings presentation that "Balancing between

pricing and market share has become more challenging due to inflationary US$16,182M

pressures and expanded industry capacity, intensifying market

competition" - consistent with our earlier views. While ABB's

datacentre/electrification exposure is appealing, at current trading

Mohit PandeyAC

valuations, we find risk-reward unfavourable given margin headwinds and +91-22-6175-9734

competitive market conditions. mohit.pandey@citi.com

Anusha Madireddy

Margins — ABB reported headline operational EBITDA expansion of 20bps YoY to +91-22-6175-9866

13%, though forex adjusted margins fell. The YoY margin bridge reflects a 2.7% drag

anusha.madireddy@citi.com

from material costs (copper/metal inflation) and higher execution expenses (+2.2%),