Shares of ABB India Ltd. pared all gains after the company posted better-than-expected profit in the fourth-quarter ended December, while revenue lagged consensus view.
"ABB India reported unusually strong Ebitda margins despite revenue missing our estimates," said Nomura in its investor note dated Feb. 12.
ABB India Q4 Earnings Highlights (YoY)
Total revenue from operations rose 15% to Rs 2,426.9 crore versus Rs 2,101.5 crore last year.
Net profit for the period gained 62% to Rs 305.32 crore versus Rs 188.20 crore.
Ebitda at Rs 364.28 crore versus Rs 185.20 crore.
Ebitda margin was at 15% versus 8.8%.
Recommended a dividend of Rs 5.50 per share for financial ended Dec. 31, 2022.
Nomura expected the company to post a profit after tax of Rs 200.7 crore and an EBITDA margin of 10.5%. It predicted a revenue of Rs 2,497 crore.
Meanwhile, Macquarie pegged the "strong double-digit EBIT margins across segments" as the key standout of the quarter.
The scrip closed 2.74% lower at Rs 3,079.65, compared with a 0.48% decline in the benchmark Nifty 50. It opened 0.91% higher at Rs 3,195 per share and rose as much as 1.38% before paring all gains.
The total traded quantity stood at 5.1 times the 30-day average.
Of the 34 analysts tracking the stock, 17 analysts maintained 'buy,' 11 suggested 'hold,' and six recommended 'sell.' The average 12-month consensus price target implied a potential upside of 1.2%, according to Bloomberg.
Here's what analysts have to say:
Nomura
Kept a 'neutral' rating with a target price of Rs 3,121 apiece.
The company reported unusually strong Ebitda margins despite revenue lagging brokerage estimates.
Await management commentary on the outlook for order inflows and drivers of profitability.
Continued strong momentum in order inflow is a key upside risk, while Ebitda margin underperformance can be a key downside risk.
Macquarie
Maintains an 'outperform' rating on the stock with a price target of Rs 3,500, implying a potential upside of 11.9%.
Key standouts this quarter were the strong double-digit EBIT margin across all segments, leading the company to report a robust 15% Ebitda margin.
Order inflows remained robust.
The company's Q4 profit after tax came in 49% and 47% ahead of brokerage and consensus expectations, respectively.
Revenue growth was slightly below the brokerage's expectations.
Reliance Securities
Maintains a 'buy' rating on the stock, factoring in higher order inflow, a strong uptick in the capex cycle, execution pick-up, and rising penetration of automation.
The company posted a healthy operating performance led by a consistent focus on execution, a value-added volume mix, and consistent deliveries to customers.
ABB is the best play on the capex revival with its strong expertise and portfolio of light switches, robots, and control systems.
Believes automation and energy efficiency will drive a strong order pipeline for ABB.
RECOMMENDED FOR YOU
Rallis India Shares Surge Nearly 9% After Q1 Profit Doubles
Jul 15, 2025
Uniparts India Targets 20% Ebitda Margin By FY28 On Cost Control, Strong Order Book
Jul 11, 2025
 061020.jpeg?rect=0%2C0%2C3500%2C1969&w=75)
South Indian Bank Shares Gain After Strong Q1 Business Update
Jul 02, 2025
Adani Group's Revenue Up By 7% In FY25; Anticipate Annual Capex Of $15–20 Billion For Five Years: Gautam Adani
Jun 24, 2025
POPULAR