ABB India Q4 CY25 earnings, profit up 18% YoY

Metro India News | BENGALURU

ABB India reported an inline set of results for the fourth quarter of calendar year 2025 (Q4 CY2025, October-December), with revenue growth offset by margin pressures from rising input costs, forex volatility, and other factors. The company posted revenue of ₹3,557 crore, up approximately 6% year-on-year (YoY) from rS 3,365 crore, driven by resilient demand across its diversified portfolio spanning 23 market segments and 18 business divisions. 

Key growth drivers included automotive, renewables, data centers, and core sectors like metals and cement, which contributed strong order placements.Net profit (or profit after tax) stood at around ₹434 crore, reflecting an 18% YoY decline from Rs  532 crore, primarily due to elevated material costs (which rose to about 61% of revenue from 48% in the prior period, accounting for roughly 300 basis points of margin contraction out of a total ~400 bps drop), currency fluctuations as a net importer, and product/project mix impacts. Profit before tax (PBT) fell to Rs 578 crore (down 18% YoY), with PBT margin at 16.2% versus 21.0% a year earlier. 

Operational EBITA margin contracted to 14.6% from 19.0%.Despite the profitability dip, order momentum accelerated sharply, with Q4 inflows surging 52% YoY to a five-year high of ₹4,096 crore—the strongest Q4 intake in recent history—supported by broad-based base business strength and timely large orders in segments like data centers, automotive, railways, metals, and infrastructure. For the full calendar year 2025, ABB India achieved record highs: orders reached Rs 14,115 crore (up 8% YoY), and revenue hit Rs 13,203 crore (also up 8% YoY). The order backlog grew 12% YoY to ₹10,471 crore as of December 31, 2025, providing solid revenue visibility.

In an exclusive interview with CNBC-TV18, Managing Director and Country Head Sanjeev Sharma and CFO TK Shridhar highlighted the reversal of earlier slowdown trends observed in the first half of 2025. Sharma noted resilience and accelerating demand across key segments, with renewables, data centers, and automotive leading the charge amid rising private capex and emerging sector investments. 

He expressed confidence in revenue momentum building into 2026, supported by the substantial order book—where 30-35% consists of large, long-cycle projects (execution beyond one year), offering visibility for the next 4-5 quarters. The book-to-bill ratio has historically ranged 30-45%, and the company anticipates similar execution patterns this year, including new orders booked and fulfilled within 2026.On margins, management acknowledged near-term headwinds, including commodity inflation, forex volatility, and the ongoing impact of Quality Control Orders (QCO), expected to persist for a couple more quarters. 

They emphasized that these are largely external factors requiring adaptive management, while focusing on disciplined execution, operational efficiencies, and leveraging the diversified portfolio to navigate cycles.The results underscore ABB India's strong positioning in India's infrastructure, energy transition, and digitalization themes, with the robust order pipeline signaling potential for double-digit revenue growth acceleration in 2026 as tailwinds from private investments in renewables, data centers, and manufacturing strengthen. Shares reacted positively to the order strength, jumping in trade on February 20, 2026, despite the profit moderation.