ABB India reports a 50% rise in quarterly orders and a new high in revenue, as demand from data centres, electrification, and automation accelerates, signalling a shift towards digital-driven growth in India’s capital goods sector.
ABB India ended the June quarter with record orders and revenue as demand from data centres, electrification and industrial automation continued to build, underscoring how India’s capital goods cycle is increasingly being shaped by digital infrastructure as well as manufacturing and public works spending. The company said quarterly orders rose 50% from a year earlier to Rs. 4,363 crore, while revenue climbed 21% to Rs. 3,559 crore, both company highs for a second quarter. ABB India also pointed to stronger demand across buildings and infrastructure, data centres, renewable energy, metals and mining, food and beverage and the energy sector. The stock, however, slipped on Friday to Rs. 7,600.
The bigger signal for investors was the backlog. ABB India finished the quarter with an order book of Rs. 11,898 crore, up 22% from a year earlier and close to its entire CY2025 revenue of Rs. 12,504 crore. That gives the company close to a year of future billings already in hand, which usually improves visibility for hiring, capacity planning and working capital management. Management said the rise was driven by smart power products, low- and medium-voltage switchgear and other electrification solutions, with Electrification orders up 77% in the quarter and gains also seen in Motion. Automation was the weaker pocket, with orders down slightly.
Profitability improved too, though not as quickly as revenue. Operational EBITA rose 23% to Rs. 461 crore and margin improved by 20 basis points to 13%, helped by operating leverage as volumes increased. Higher input costs, including copper, silver and electrical steel, and delays in passing through some price rises limited the upside. Profit before tax was affected by mark-to-market and foreign exchange movements, while profit after tax increased 8% to Rs. 370 crore.
The broader backdrop is important. According to the company, demand from electrification, automation, digitalisation, grid modernisation and the energy transition is structural rather than cyclical. That view is echoed by ABB’s parent, which recently reported an 81% year-on-year increase in India order inflows for the quarter, driven by customer spending on energy expansion, efficiency and grid resilience. Even so, the market is already valuing ABB India richly, with the shares trading on a trailing price-to-earnings multiple of about 54.86 times and a market value of roughly Rs. 1,61,050 crore, leaving little room for execution missteps.
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