This article first appeared on GuruFocus .
Release Date: November 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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ABB India Ltd ( BOM:500002 ) reported a 13% growth in base orders and a 14% increase in revenue, indicating strong business performance.
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The company maintained a strong cash position with nearly 5,000 crores, providing financial stability.
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ABB India Ltd ( BOM:500002 ) successfully introduced IE5 ultra-premium adhesion CLV motors, expanding its product portfolio with innovative technology.
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The company achieved its sustainability targets, with all motion factories certified as zero waste to landfill and significant progress in water recyclability.
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ABB India Ltd ( BOM:500002 ) continues to focus on diverse market segments, showing high engagement in data centers, electronics, and renewables, which are expected to drive long-term growth.
Negative Points
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Profitability faced challenges with a 16% quarter-on-quarter increase but only a 7% year-on-year rise, impacted by material costs and market dynamics.
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The company is experiencing delays in large order finalizations, affecting the overall order growth rate.
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The QCO (Quality Control Order) impact is causing higher import costs and forex volatility, expected to persist for 3 to 4 more quarters.
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There is a sluggishness in the market for CapEx formation and expansion projects, leading to slower growth in certain segments.
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The robotics business is undergoing a strategic review, with potential divestment, which may impact future growth prospects in this segment.
Q & A Highlights
Q: Your profit margins for the quarter are closer to the lower end of the 12-15% range. Are margin pressures from material costs and market dynamics factored in, or could this be the new normal for profitability? A: Sanjeev Sharma, Country Managing Director, explained that the current margins reflect cyclical impacts and market dynamics, including competition and foreign exchange fluctuations. The company expects the QCO (Quality Control Order) impact to be addressed in 3-4 quarters, and future profitability will depend on market developments and investment decisions.
Q: Given the current macroeconomic environment and geopolitical tensions, is the current level of base orders likely to persist before we see a breakout? A: Sanjeev Sharma noted that while there has been a sluggishness in CapEx formation, the company expects growth to return. ABB India is well-positioned to benefit from future order intake due to its diverse market segments and expects the growth cycle to resume.
Q: With the recent engagement with Nvidia for AI data centers, when can we expect the products to be available in India, and how might this impact ABB's market share? A: Sanjeev Sharma stated that while he doesn't have complete details, ABB's technologies are generally available globally, including in India, once developed. The collaboration with Nvidia is expected to enhance ABB's offerings in the data center market.
Q: Can you elaborate on the QCO impact and how long it will continue? A: The QCO requires products to be tested and certified by Indian standards, leading to higher imports due to certification delays. This impact is expected to continue for another 3-4 quarters. ABB is working to navigate these challenges while maintaining customer service.
Q: Regarding the robotics arm, how will Indian shareholders be compensated following the global sale to SoftBank? A: Sanjeev Sharma explained that the separation of the robotics business in India will be evaluated by the local board, including independent directors. The process will follow due diligence and governance standards, similar to past asset separations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
