As ABB India faces the impact of margin pressure and weak order inflows in Q2CY25, investors are weighing its long-term growth potential against near-term volatility.
ABB Share Price Reacts to Q2CY25 Earnings
ABB India’s stock declined nearly 4% intraday to ₹5,205.10 on August 4, 2025, after Q2CY25 earnings fell short of street expectations.. While revenue rose 11.8% YoY to ₹3,175.4 crore, net profit dropped 20.7% YoY to ₹351.7 crore. The decline in profitability, along with a 23.7% drop in EBITDA and contracting margins, triggered negative sentiment around the capital goods stock.
The market’s reaction was swift. ABB India, a key Nifty Next 50 engineering stock, experienced notable selling pressure amid high volumes, reflecting investor caution amid cyclical slowdown and margin stress.
Earnings Breakdown: Profit Slides Despite Revenue Growth
Despite top-line growth, ABB’s earnings failed to impress. Here’s a breakdown of the key Q2CY25 financials:
Metric | Q2CY25 | Q2CY24 | YoY Change |
---|---|---|---|
Revenue from Operations | ₹3,175.4 Cr | ₹2,829.9 Cr | +11.8% |
EBITDA | ₹414 Cr | ₹542 Cr | -23.7% |
Net Profit | ₹351.7 Cr | ₹443.5 Cr | -20.7% |
EBITDA Margin | 13.0% | 19.4% | -612 bps |
Motilal Oswal noted in its earnings summary that foreign exchange fluctuations and one-off expenses further weighed on the profit margin. Additionally, order inflows declined 12% YoY to ₹3,040 crore due to subdued demand and delayed large orders.
Valuation Check: Is ABB Overpriced or Underestimated?
Despite short-term pressure, ABB India continues to command a premium valuation — reflecting investor optimism on long-term electrification, automation, and industrial digitization trends.
Valuation Metric | Value |
---|---|
52-Week Price Range | ₹4,125 – ₹5,590 |
Basic EPS (TTM) | ₹88.32 |
Book Value per Share | ₹333.90 |
Dividend Yield | ~0.85% |
P/B Ratio | 20.71x |
ROCE (FY24) | 35.54% |
Debt-to-Equity | 0.00 (Zero Debt) |
With a zero-debt structure, solid return ratios, and consistent dividend payouts, ABB India remains one of the few low-debt industrial stocks that offer both safety and scalability.
What to Watch: Order Book Momentum & Dividend Signals
💡Did You Know? Despite a 12% YoY decline in fresh orders this quarter, ABB India’s order backlog surpassed ₹10,000 crore in H1CY25, signaling sustained project execution strength.The company expects demand revival as inflation stabilizes and private capex resumes in H2CY25.
Key Corporate Updates:
- ✅ Board Meeting: August 2, 2025 – post-result discussion
- ✅ Investor Meet: July 28, 2025 – management commentary on growth outlook
- ✅ Final Dividend: ₹33.50/share (declared in Feb 2025, effective May 2)
- ✅ Interim Dividend: ₹10.66/share (August 2024)
Management Commentary:
ABB’s leadership highlighted that order softness was due to timing delays in large projects, not structural weakness. They emphasized strong base order growth (+5% YoY) and pipeline visibility in robotics, smart buildings, and motion control segments.
Why ABB Still Holds Long-Term Promise
ABB India’s fundamentals reflect a well-capitalized balance sheet, expanding addressable markets in energy automation, and high-end manufacturing. It’s also riding the global shift toward sustainability, electrification, and smart infrastructure.
Risk Factors to Monitor:
- Volatile input costs
- Delays in industrial capex
- Weak large order visibility
- High P/B valuation risk in a correction phase
FAQ – ABB Share Price & Investment Outlook
Q1: Is ABB a buy after Q2CY25 results?
A: Near-term pressure from margin compression and order slowdown exists. However, long-term growth outlook, strong ROCE, and zero debt make it a fundamentally resilient bet. Investors may accumulate on dips with a 2–3 year horizon.
Q2: How does ABB compare with Siemens and L&T in 2025?
A: While L&T is a diversified infra-conglomerate and Siemens India is heavily focused on automation, ABB leads in smart electrification and robotics, offering a sharper play on Industry 4.0 trends with asset-light balance sheet.
Q3: What are the risks ahead for capital goods stocks in India?
A: Delay in private capex recovery, global macro uncertainty, and cost-side inflation are key risks. However, India’s manufacturing shift and PLI-driven opportunities provide structural support.
Conclusion: Should You Track ABB Post-Q2CY25?
While margin headwinds and cyclical softness have dampened ABB’s short-term performance, its long-term fundamentals remain strong, backed by robust order visibility and zero-debt financials. With a debt-free balance sheet, consistent dividend payouts, and ₹10,000+ crore order book, the company offers a rare combination of growth visibility and financial prudence in the capital goods sector.
👉 Before your next portfolio rebalance, analyze ABB’s Q2CY25 results in detail and compare its valuation with sector peers like Siemens and Cummins India.
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