ABB India Q2 profit misses estimates; declares ₹90 special dividend as order intake surges 50%

Electrification and automation major ABB India Ltd on Friday (July 31) reported a standalone net profit of ₹362.3 crore for the second quarter of calendar year 2026, rising 3% year-on-year from ₹352 crore in the same quarter last year.

The company follows the January to December financial year.

The company reported its highest-ever second-quarter revenue of ₹3,559 crore, while revenue for the first half of CY2026 stood at ₹6,743 crore, registering double-digit year-on-year growth in both periods.

Revenue growth was supported by effective price management and higher volumes across Electrification divisions. In Motion, all divisions contributed to growth, while Automation revenue was led by the Energy Industries division.

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At the operating level, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 11.4% to ₹447.1 crore from ₹401.2 crore a year earlier. The EBITDA margin stood at 13% during the quarter, compared with 14% in the year-ago period.

ABB India’s operational EBITA margin increased by 20 basis points to 13% during the quarter. The improvement was supported by volume growth and cost optimisation, partly offset by higher freight, energy and commodity costs, including copper, silver and electrical steel, along with revenue mix and time lag in implementing price revisions.

ABB India’s second-quarter performance was below CNBC-TV18 poll estimates on profitability metrics. Net profit was estimated at ₹388.5 crore, EBITDA at ₹461.7 crore, and EBITDA margin at 14%. However, revenue came in above the poll estimate of ₹3,322.4 crore.

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The company reported profit before tax (PBT) of ₹499 crore for the quarter and ₹961 crore for H1 CY2026. Despite growth in operational EBITA, PBT growth was impacted by mark-to-market movements and foreign exchange volatility.

Tax cost stood at ₹128.7 crore for the quarter, with an effective tax rate of 25.8%. For the first half of CY2026, tax cost was ₹248.7 crore, with an effective tax rate of 25.9%. ABB India reported earnings per share (EPS) of ₹17.46 for Q2 CY2026 and ₹33.61 for H1 CY2026.

Orders

ABB India reported total orders of ₹4,363 crore in the second quarter of calendar year 2026, the highest-ever second-quarter order intake for the company, with orders rising 50% year-on-year.

For the first half of CY2026, total orders stood at ₹8,643 crore, up 36% year-on-year. The company’s order backlog stood at ₹11,898 crore at the end of H1 CY2026, increasing 22% year-on-year, with orders spread across segments.

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Order growth was driven across all business areas, led by base orders in Electrification and higher export orders in Motion and Automation. Demand remained strong across core and emerging segments, including metals and mining, data centres, renewables, food and beverage, cement, automotive and building infrastructure.

Key orders during the quarter included low and medium voltage switchgears and Ring Main Units for data centres, smart power products for renewable energy, electrics and drives for container terminals, e-houses for metals companies and propulsion equipment for locomotives.

During the quarter, key revenue-driving segments included buildings and infrastructure, data centres, metals and mining, food and beverage, renewables, energy and chemicals.

On sustainability initiatives, ABB India said circularity remained a key focus during the first half of CY2026, with 99.7% of waste diverted from landfill.

Special Dividend

ABB India’s board of directors has declared a special dividend of ₹90 per share for the financial year 2026. The dividend amounts to 4,500% on the company’s equity shares with a face value of ₹2 each. The company said the dividend reflects proceeds from the Robotics divestment and operational profits for the first half of calendar year 2026.

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The special dividend has been declared on 21,19,08,375 fully paid-up equity shares of the company. The payment will be made on or before August 29, 2026, to shareholders whose names appear in the company’s Register of Members or in the records of depositories as beneficial owners as on the record date of August 7, 2026.

Sanjeev Sharma, Country Managing Director, said, "The record orders we delivered in Q2 CY2026 reflect the confidence customers place in ABB India's technologies and execution capabilities.

Combined with 21% revenue growth, a 23% increase in Operational EBITA as well as robust cash generation, the quarter demonstrates our ability to convert strong demand into profitable growth. I would like to thank our employees whose commitment, agility, and customer focus made these results possible.

We enter the second half with confidence, supported by a strong backlog and active opportunity pipeline across a diverse set of industries. India's ongoing investments in infrastructure, manufacturing, energy transition, and digitalisation continue to create long-term opportunities for ABB.

With our technology leadership, local expertise and execution excellence, we are well positioned to capture this growth while continuing to advance our sustainability ambitions and create lasting value for all stakeholders."

Shares of ABB India Ltd ended at ₹7,285.95, down by ₹6.00, or 0.082%, on the BSE.