Why Did ABB India’s Q2 Net Profit Plummet 21% to Rs 352 Crore?
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Synopsis
ABB India Limited has reported a significant drop in net profit for Q2 FY26, raising questions about its operational performance. The company saw a 21% decline in profits despite a rise in revenue, prompting concerns among investors. Find out more about the implications and future outlook for ABB India.
Key Takeaways
- Q2 FY26 net profit fell by 21% to Rs 352 crore.
- Revenue increased by 12.2% to Rs 3,175 crore.
- EBITDA declined by 23.7% to Rs 414 crore.
- Interim dividend of Rs 9.77 per share declared.
- Stock down 22.06% this year.
Mumbai, Aug 2 (NationPress) ABB India Limited announced on Saturday a significant 21% decline in its net profit for the quarter that concluded in June (Q2 FY26). The company's earnings fell to Rs 352 crore, down from Rs 443 crore during the same quarter last year (Q2 FY25).
The company's revenue for this quarter surged by 12.2%, reaching Rs 3,175 crore, compared to Rs 2,831 crore a year earlier, as per their filing with the stock exchange.
Despite the revenue increase, the company's operational performance showed signs of strain, with EBITDA dropping 23.7% to Rs 414 crore from Rs 542 crore. Additionally, margins decreased to 13%, down from 19.2%.
In conjunction with the financial results, ABB India also declared an interim dividend of Rs 9.77 per share, according to their regulatory announcement.
Prior to the earnings release, ABB India’s shares closed down by 2.22% at Rs 5,387.50 on the Bombay Stock Exchange (BSE), contrasting with a 0.72% decline in the benchmark Sensex.
Over the last five days, the stock has decreased by Rs 230, or 4.1%, according to official reports.
Year-to-date, the stock has fallen by 22.06%, and over the preceding 12 months, it has dropped 30.66%.
ABB India, a subsidiary of the global entity ABB Limited, specializes in technology focused on electrification and automation.
It caters to various sectors, including utilities, industry, transport, and infrastructure. With over a century of operation in India, the company boasts multiple manufacturing facilities, engineering centers, and global feeder factories within the country.
ABB integrates its engineering acumen with digital solutions such as ABB Ability to enhance performance and efficiency.
The firm prioritizes sustainable solutions, efficient resource utilization, and ongoing innovation to address the evolving requirements of its clientele.
Point of View
I believe that ABB India's recent performance signals important trends in the technology sector. The balance between revenue growth and declining profits highlights the challenges faced by companies in adapting to market demands. It’s crucial for ABB India to address these operational issues to regain investor confidence and maintain its market position.
NationPress
07/09/2025
Frequently Asked Questions
What caused the decline in ABB India's profit?
The decline in ABB India's profit was primarily due to weakened operational performance, which saw a significant drop in EBITDA despite a rise in revenue.
How does ABB India's revenue compare year-over-year?
ABB India's revenue for Q2 FY26 increased by 12.2%, reaching Rs 3,175 crore, compared to Rs 2,831 crore in the same quarter last year.
What is the interim dividend declared by ABB India?
ABB India declared an interim dividend of Rs 9.77 per share alongside its financial results.
How have ABB India's shares performed recently?
ABB India's shares closed 2.22% lower ahead of the earnings announcement and have dropped 22.06% this year.
What sectors does ABB India serve?
ABB India serves various sectors, including utilities, industry, transport, and infrastructure, leveraging its expertise in electrification and automation.
