Profit Slips 20%, But ABB’s ₹10K Cr Order Book Grows – Is This a Buying Opportunity?

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.