ABB India Q1 CY26: Orders Surge 25%, Revenue Grows 6%

ABB India saw orders surge 25% in the first quarter of CY2026, pushing its backlog to ₹11,000 crore. Revenue grew more moderately by 6% to ₹3,184 crore.

What Happened

ABB India reported strong order growth of 25% for the first quarter of CY2026, significantly boosting its backlog to ₹11,000 crore. This indicates robust demand for its products and services.

Revenue for the quarter rose 6% to ₹3,184 crore. Growth was particularly strong in the Electrification segment (up 36% in orders) and the Motion segment (up 22% in orders).

The company also announced plans for a $75 million (approximately ₹620 crore) investment to expand its manufacturing and R&D capabilities in India.

Milestones for the quarter included dispatching the first locally manufactured wind power converter from its Nelamangala facility and launching the ARTU Formula low-voltage switchgear platform.

Why This Matters

The significant increase in orders provides ABB India with strong visibility for future revenue over the coming quarters and years.

The planned capital expenditure signals ABB India's commitment to long-term growth and strengthening its domestic manufacturing.

New product introductions and enhanced local manufacturing capabilities aim to improve its competitive edge and market position.

The Backstory

ABB India has been strategically expanding its operations. In 2023, it opened a new R&D and manufacturing facility in Nelamangala, Karnataka, focused on power converters for renewable energy projects. This facility is key to fulfilling its current order book.

What Changes Now

A robust order pipeline is expected to boost shareholder confidence, indicating sustained business momentum.

The planned $75 million investment aims to enhance production capacity and R&D innovation, potentially opening new revenue streams and improving margins.

Manufacturing key components locally, such as wind power converters, reduces import reliance and can improve cost structures.

Introducing new platforms like ARTU Formula is designed to capture market share in the evolving power distribution sector.

Risks to Watch

Profitability faces pressure from rising material costs, including copper, silver, and aluminum, as well as currency depreciation against the Euro and US dollar.

Slower revenue growth was partly due to supply chain and order fulfillment issues, influenced by geopolitical events such as the West Asia crisis.

Intense market competition, ongoing volatility in commodity prices, and currency fluctuations remain challenges for margin stability.

Peer Comparison

ABB India operates in competitive electrification and automation markets alongside peers like Siemens India and Schneider Electric India.

Siemens India has seen strong order inflows, driven by infrastructure spending, while Schneider Electric India is focused on expansion and digitalization.

These competitors also face similar challenges related to supply chains and input costs.

Context Metrics

For the full fiscal year FY24, ABB India reported consolidated revenue of approximately ₹10,990 crore. Its consolidated Profit After Tax for FY24 was approximately ₹1,300 crore. At the end of FY24, the consolidated order backlog stood at approximately ₹10,500 crore.

What to Track Next

Management's commentary on the pace of private sector investment revival.

The phasing and execution of the $75 million capital expenditure and its expected contribution to future growth.

ABB India's strategy for managing input cost volatility and implementing price adjustments for improved profitability.

Trends in commodity prices and currency fluctuations that may impact margins.

The speed of decision-making for automation projects and their conversion into orders.