ABB India Q2 Results: Motilal Oswal Maintains 'Buy', Revises Target Price — Here's Why

ABB India’s Q2 CY25 results were lower than estimates as margins contracted significantly owing to forex fluctuations, quality control order implementation and competitive pricing. Order inflows declined 12% YoY, while base ordering was strong.

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Motilal Oswal Report

We believe that in the near term, ABB India Ltd. can underperform due to margin pressure and sluggish ordering activity in the private and government sectors. However, in the long run, we expect ABB to improve its margins once the QCO implementation is over in the next few quarters and revenues once ordering activity starts ramping up.

We, thus, maintain Buy with a revised DCF-based target price of Rs 6,000, implying 55x Sep’27E earnings. The scope of re-rating back to higher multiples will emerge once inflows and margins start showing an improving trend.

Key risks and concerns

Slowdown in order inflows, pricing pressure across segments, increased competition, supply chain issues, and geopolitical risks could affect our estimates and valuations.

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