ABB India shares plunge 7% in trade; Nomura decodes stock strategy

ABB India shares plunged nearly 7 per cent in trade on Monday, August 4, 2025, logging an intra-day low at ₹5,014.50 per share on the National Stock Exchange. The selloff on the counter came after the company announced its results for the first quarter of the financial year 2025-2026 (Q1FY26).

At 12:55 PM, ABB India's share price was down by 6.32 per cent at ₹5,046 per share. In comparison, Nifty50 was trading in the green territory, above 24,700 level, up by 137 points or 0.56 per cent. At the time of writing this report, around 1.3 million shares had changed hands on the counter, cumulatively, on the NSE and BSE.   READ STOCK MARKET LIVE UPDATES TODAY

 

ABB India Q1 earnings

The company reported a 21 per cent decline in profit after tax (PAT) figure to ₹352 crore during the quarter ended June 30, 2025, as against ₹443 crore reported in the corresponding period of the previous fiscal year. ABB's revenue figure stood at ₹3,175 crore during the quarter under review, marking a rise of 12 per cent. The company had reported revenue of ₹2,831 crore in the same quarter of the previous fiscal year. As for the orders, ABB India continues to maintain a strong order backlog, which reached ₹10,000 crore market during the first half of the current year (H1FY25).

However, total orders for the quarter declined by over 11 per cent to ₹3,036 crore during the quarter under review. The decline was largely owing to sluggish order activity and a mixed response in the manufacturing vertical. Order growth in electrification and motion was impacted by the lack of large orders this quarter, unlike the same period last year, when the company had secured major contracts. Order inflows in process automation (PA) and robotics and discrete automation were softer due to subdued demand, rising input costs and ongoing geopolitical and trade-related challenges.

The company's earnings before interest, taxes, depreciation and amortization (Ebitda) stood at ₹414 crore during the quarter, down from ₹542 crore reported in the year-ago period.

"The company posted its highest second-quarter revenue in the last five years. Significant step up in Electrification across divisions, especially export revenues, which was offset by softness in Process Automation. Process Automation witnessed a downslide due to large order revenues in Q2 CY2024 and delays in clearances and decisions in certain sectors. It is likely to fructify and stabilize in the coming quarters," the regulatory filing read.  ALSO READ | Aptus Value stock jumps 7% in 2 days on Q1 results; analysts say 'Buy'

Brokerage View-Nomura

Global brokerage firm Nomura has reduced its CY25 sales forecast by 2 per cent due to muted order inflows, anticipating only a gradual recovery as competitive pressures mount, especially in the motion/PA segments. Nomura has also trimmed its Ebitda margin forecasts for CY25 and CY26 by 92 basis points (bps) and 15 bps, respectively, citing waning pricing power and weaker-than-expected operating leverage.

"We estimate order inflow growth of 8 per cent/11 per cent in CY25/27F (vs. 13 per cent in CY19-24) led by electronics, renewables, data-center, railways, metros, water, pharma. Our PAT estimates are now lower by 5-7 per cent. We maintain 'Reduce' with a lower target price of ₹4,870, implying a core PE of 59x (vs the long-term average PE of 61.7x). Our target core PE reflects a muted estimated earnings compound annual growth rate (CAGR) of 4 per cent over CY24-CY27F," the brokerage firm said in its report.