ABB India Limited Q2 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Mixed
Executive Summary
ABB India Q2 FY2026: Revenue ₹3,310.72 Cr (+13.7% YoY), PAT ₹409.04 Cr (-7.1% YoY)
Quarter ended September 30, 2025 (Q2 FY2026) consolidated revenue was ₹3,310.72 Cr, up 13.7% YoY driven by higher sales across Electrification and Motion; total income was ₹3,394.67 Cr. Profit before tax declined to ₹542.11 Cr (-9.2% YoY) and PAT fell to ₹409.04 Cr (-7.1% YoY) as higher raw material costs and lower PBT margins weighed on profitability. Electrification segment expanded strongly with revenues of ₹1,378.25 Cr and segment profit of ₹270.79 Cr, while Motion segment PBT contracted QoQ and YoY. Board-approved corporate action: incorporation of ABB Robotics India Private Limited on...Total revenue (Q2 FY2026)
₹3,310.72 Cr+13.7% YoY
Total income (Q2 FY2026)
₹3,394.67 Cr+12.9% YoY
Profit before tax (Q2 FY2026)
₹542.11 Cr-9.2% YoY
Profit after tax / PAT (Q2 FY2026)
₹409.04 Cr-7.1% YoY
Basic EPS - continuing ops (Q2 FY2026)
₹19.30-7.1% YoY
Cost of materials (Q2 FY2026)
₹1,755.97 Cr+24.2% YoY
Total expenses (Q2 FY2026)
₹2,852.56 Cr+18.5% YoY
PBT margin (Q2 FY2026)
16.37%-414 bps YoY
Key Highlights
10
Electrification segment revenue rose to ₹1,378.25 Cr in Q2 FY2026, up ₹224.27 Cr or 19.4% YoY, supporting consolidated top-line growth
Electrification segment profit increased to ₹270.79 Cr in Q2 FY2026, up ₹31.07 Cr or 13.0% YoY, indicating improved segment-level margins
Motion segment revenue was ₹1,174.58 Cr in Q2 FY2026, up ₹95.12 Cr or 8.8% YoY but segment PBT fell to ₹181.63 Cr, down ₹67.97 Cr or 27.2% YoY reflecting margin compression
Cost of raw materials increased to ₹1,755.97 Cr in Q2 FY2026, up ₹342.50 Cr or 24.2% YoY, which materially pressured PBT despite revenue growth
Robotics & Discrete Automation revenue jumped to ₹181.11 Cr in Q2 FY2026, up ₹69.81 Cr or 62.7% YoY, driven by higher order conversion ahead of planned spin-off preparation
Other expenses were ₹525.79 Cr in Q2 FY2026, marginally higher by ₹5.46 Cr or 1.0% YoY, indicating controllable opex but insufficient to offset input cost rise
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Key Highlights
10
Electrification segment revenue rose to ₹1,378.25 Cr in Q2 FY2026, up ₹224.27 Cr or 19.4% YoY, supporting consolidated top-line growth
Electrification segment profit increased to ₹270.79 Cr in Q2 FY2026, up ₹31.07 Cr or 13.0% YoY, indicating improved segment-level margins
Motion segment revenue was ₹1,174.58 Cr in Q2 FY2026, up ₹95.12 Cr or 8.8% YoY but segment PBT fell to ₹181.63 Cr, down ₹67.97 Cr or 27.2% YoY reflecting margin compression
Cost of raw materials increased to ₹1,755.97 Cr in Q2 FY2026, up ₹342.50 Cr or 24.2% YoY, which materially pressured PBT despite revenue growth
Total expenses rose to ₹2,852.56 Cr in Q2 FY2026, up ₹444.79 Cr or 18.5% YoY, outpacing revenue growth and reducing operating leverage
PBT declined to ₹542.11 Cr in Q2 FY2026 from ₹597.28 Cr in Q2 FY2025, a drop of ₹55.17 Cr or 9.2% YoY, translating to a 414 bps fall in PBT margin YoY
Robotics & Discrete Automation revenue jumped to ₹181.11 Cr in Q2 FY2026, up ₹69.81 Cr or 62.7% YoY, driven by higher order conversion ahead of planned spin-off preparation
Other expenses were ₹525.79 Cr in Q2 FY2026, marginally higher by ₹5.46 Cr or 1.0% YoY, indicating controllable opex but insufficient to offset input cost rise
Company incorporated wholly owned subsidiary ABB Robotics India Private Limited on September 22, 2025 to house the Robotics segment as a precursor to a potential spin-off
Discontinued Power Grids operation contributed a nominal profit of ₹0.21 Cr in Q2 FY2026 and is disclosed separately, remaining immaterial to consolidated profitability
Guidance & Outlook
4
Board-approved corporate action to house Robotics in a separate subsidiary signals strategic intent to spin off Robotics; this may unlock value in subsequent quarters
Margin recovery will depend on moderation of raw material costs and improvement in Motion segment profitability over the next quarter
Management's near-term outlook implies continued revenue momentum from Electrification and Motion, with implied focus on order conversion in coming quarters
No explicit incremental capex guidance disclosed in the quarter; incorporation of subsidiary suggests corporate-structuring costs may be incurred in late FY2026
Risks & Concerns
5
Sharp YoY increase in cost of raw materials to ₹1,755.97 Cr (+24.2% YoY) poses a risk to near-term operating margins if not recovered via pricing
PBT margin contracted by 414 bps YoY to 16.37% in Q2 FY2026, indicating vulnerability to margin pressure if expenses continue to outpace revenue
Motion segment PBT decline of ₹67.97 Cr YoY (-27.2%) highlights demand or mix risk in that business which could drag consolidated profitability
Dependence on successful execution of the Robotics carve-out presents execution and regulatory risk related to valuation, approvals and integration costs
Other unallocated expenditure and interest (₹24.64 Cr and ₹5.64 Cr respectively in Q2 FY2026) could increase with corporate actions and debt servicing, pressuring net income
AI-generated analysis. May contain inaccuracies — verify against original sources.