ABB India (ABB) | News Based Sentiment Analysis

• On August 29, 2025, ABB India announced a significant order worth ₹173.55 crore from Siemens Gamesa for the supply of wind turbine converters and electrical cabinets, manufactured at their Nelamangala factory with deliveries scheduled throughout 2026. This win reinforces ABB India’s position in the renewable energy sector and supports India’s broader renewable energy goals, leading to a 0.77% share price gain on the NSE that day.
• Despite the positive order news, ABB India’s Q2 CY2025 earnings, reported on August 29, 2025, revealed a 20% decline in net profit to ₹352 crore, primarily due to forex volatility and higher expenses, even as revenue increased to ₹3,175 crore. This mixed performance highlights the challenges ABB India faces in maintaining profitability amidst external economic pressures.
• Further illustrating these challenges, preliminary Q3 CY2025 financials, released on September 1, 2025, showed a slight 0.7% revenue growth to ₹3,275 crore, but a substantial 23.94% decline in EBITDA to ₹513.5 crore and a 25.89% drop in net profit to ₹351.74 crore compared to the June 2025 quarter. These declines suggest ongoing profitability concerns despite top-line growth.
• Investor sentiment appears cautious, with analyst ratings as of September 5, 2025, showing a split between 'Buy' (43.48%), 'Hold' (43.48%), and 'Sell' (13.04%) recommendations, resulting in a mean 'Hold' rating and an average target price of ₹5551.83 – a modest 8.49% upside from the ₹5117.4 trading price. Motilal Oswal Financial Services maintains a 'Buy' rating with a higher target of ₹8500.
• ABB India’s share price has experienced a decline, falling 25.62% year-to-date and 33.18% over the past year as of September 5, 2025, reaching ₹5,117.40, though a weekly 'Buy' signal appeared on September 5th, historically leading to a 7.61% price gain within seven weeks. This suggests potential for a near-term rebound, but also highlights recent investor concerns.
• During the company’s 32nd Annual General Meeting on September 6, 2025, the re-appointment of Mr. Jain as Company Secretary was approved, commencing March 1, 2026, and continuing until February 28, 2031, ensuring continuity in corporate governance.
• Looking ahead, ABB India has scheduled its 39th Annual General Meeting for September 29, 2025, where a final dividend of ₹4 per equity share for the financial year 2024-25 will be considered and potentially approved.

The Investment Story: ABB India is navigating a complex period of strong order inflows offset by declining profitability due to external factors like forex volatility and rising expenses, creating a mixed picture for investors. Despite these challenges, the company remains a key player in the growing renewable energy sector.

What It Means for Investors: The recent performance suggests caution is warranted, but the robust order backlog and potential for a near-term price rebound (indicated by the 'Buy' signal) offer some optimism. Investors should closely monitor the company’s ability to manage costs and capitalize on its strong position in the renewable energy market.

Looking Ahead: Investors should pay close attention to the upcoming Annual General Meeting on September 29, 2025, for updates on the dividend and financial performance. Monitoring the impact of forex fluctuations and cost pressures on future earnings will also be crucial.

The Bottom Line: ABB India presents a nuanced investment opportunity. While short-term headwinds exist, the company’s long-term prospects in the renewable energy sector and its substantial order book suggest potential for future growth, but require careful monitoring of profitability and external economic factors.