ABB India posted record quarterly orders for July-September 2026, prompting Motilal Oswal to upgrade its stock rating while the company's EBITDA margin remained below its year-earlier level.
Motilal Oswal Financial Services raised its rating to Buy from Neutral and set a target price of ₹8,200. That is about 16% above the ₹7,045 reference price in its report. The brokerage said its valuation uses 60 times estimated December 2028 earnings.
ABB India’s order intake reached ₹4,733 crore, compared with ₹3,030 crore a year earlier. The company’s order backlog stood at ₹12,927 crore on Sept. 30, an increase of 36% year over year. The figures provide a snapshot of industrial demand in India across areas including data centers, utilities, metals and mining, and buildings and infrastructure.
Revenue from operations grew 19.4% to ₹3,738.13 crore. Profit after tax from continuing operations rose about 10.5% to ₹439.82 crore, according to the company’s filed results.
EBITDA increased 14% to ₹552 crore, but the margin narrowed to 14.8% from 15.5% a year earlier. It was higher than the 12.6% margin in the June quarter. Operational EBITA margin was 12.9%, down from 13.4% in the year-earlier quarter. ABB linked margin pressure to higher commodity and logistics costs, currency volatility, pricing pressure in some markets and lower volumes in certain businesses.
Electrification led the growth in orders, ABB said. Some Motion activities, including railways and services, also advanced. The company said the timing of system-order deliveries partly weighed on Automation.
Motilal Oswal forecast compound annual growth rates for CY2026-28 of 23% for revenue, 32% for EBITDA and 31% for profit after tax. The brokerage said price increases from prior quarters should support revenue and margins, and that Electrification helped the quarter’s margin exceed its estimate. Its listed risks include slower order inflows, pricing pressure, competition, supply-chain problems and geopolitical risks.
