ABB India reported a 21% revenue increase to ₹3,559 crore in the second quarter, supported by record order inflows of ₹4,363 crore. The company declared a special dividend of ₹90 per share, though profitability remained under pressure due to rising commodity costs. Investors are now assessing the balance between strong order growth and the impact of input price volatility on margins.
ABB India has delivered a mixed performance for the second quarter of the 2026 calendar year. The company reported a 21% year-over-year revenue growth, reaching ₹3,559 crore, as demand from sectors like data centers and electrification remained robust. Alongside the financial results, the company announced a special dividend of ₹90 per equity share, a move largely supported by cash proceeds from the divestment of its robotics business.
Record Order Book Strength
The company's order book provides a clear view of its growth momentum. During the quarter, ABB India secured orders worth ₹4,363 crore, a 50% increase compared to the same period last year. The total order backlog has now reached a record ₹11,898 crore. This provides the company with significant visibility for future revenue. Much of this demand is fueled by the ongoing expansion of digital infrastructure and data centers in India, alongside traditional infrastructure projects that require electrification and motion technologies.
Margin Pressures and Cost Factors
While the top-line growth and order book expansion have been positive, profitability metrics have faced challenges. Profit After Tax (PAT) grew by 8% to ₹370 crore, a slower pace compared to the 21% revenue growth. This indicates that rising input costs have prevented profits from keeping pace with revenue. The company is dealing with price volatility in key commodities, such as copper and silver, which are essential for its manufacturing processes. Additionally, fluctuations in foreign exchange rates have added to the cost burden, putting pressure on profit margins. Investors should track whether the company can pass these higher costs on to customers in future quarters.
Valuation and Market Context
The company’s stock has shown a mixed reaction to these results, trading near ₹7,424, which is below its 52-week high of ₹7,924.50. Market observers have noted that ABB India trades at a demanding valuation, reflecting high investor expectations for future growth. Because the company is valued at a premium, the market remains sensitive to any fluctuations in margin performance.
Looking ahead, the key monitorable for shareholders will be the company's ability to maintain or improve margins despite fluctuating commodity prices. Any stabilization in raw material costs or successful pricing strategies could support earnings growth. Conversely, persistent cost pressures or a slowdown in industrial demand could impact future valuation, making the management’s commentary on pricing and cost management crucial in the coming months.