ABB India reported a net profit of ₹362.3 crore for the second quarter of 2026, missing market expectations. While revenue climbed to a record ₹3,559 crore and order intake surged 50% year-on-year, rising commodity costs weighed on profit margins. The company declared a special dividend of ₹90 per share, supported by recent divestment proceeds.
ABB India Ltd. has announced a special dividend of ₹90 per share, a move that follows the company's recent divestment of its Robotics business. This payout, representing a 4,500% dividend on shares with a face value of ₹2, is scheduled to be distributed on or before August 29, 2026, to shareholders who are on the company's records as of August 7, 2026. This distribution reflects both the cash inflow from the asset sale and operational profits from the first half of the year.
Revenue Growth Versus Margin Pressure
For the second quarter ending in 2026, the company achieved its highest-ever second-quarter revenue of ₹3,559 crore. This growth was fueled by strong performance across its Electrification, Motion, and Automation business segments. However, net profit rose only marginally by 3% to ₹362.3 crore compared to the same period last year, falling short of analyst expectations. The disparity between record revenue and modest profit growth highlights a challenge in maintaining profitability during a period of rising expenses.
While the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 11.4% to ₹447.1 crore, the EBITDA margin declined to 13%, down from 14% in the previous year. This pressure on margins was primarily caused by increased costs for freight, energy, and raw materials such as copper, silver, and electrical steel. Investors may closely monitor whether the company can successfully pass these higher input costs to customers in future quarters, as a lag in price revisions currently affects bottom-line growth.
Order Backlog and Demand Drivers
Despite the margin challenges, the company’s business pipeline remains robust. ABB India recorded a 50% year-on-year surge in order intake, reaching ₹4,363 crore for the quarter. This brings the total order backlog to ₹11,898 crore, a 22% increase from last year, which provides visibility for future revenue. Growth in orders was driven by sectors such as data centres, renewable energy, food and beverage, automotive, and building infrastructure.
Management has maintained an optimistic outlook, citing India’s ongoing investments in energy transition, digitalization, and manufacturing as long-term drivers for the business. The ability of the company to execute this large order backlog efficiently will be a key factor for shareholders, as any potential delay in project completion or further increase in raw material costs could keep profitability under pressure. Investors will continue to track how the company balances its aggressive order growth with the need to restore profit margins to previous levels in the coming quarters.