ABB India had a double whammy in Q2 — Here are the key factors explaining why

ABB India Ltd. reported its second quarter results for calendar year 2025 after market closing hours on Friday, which were a double whammy for the company, despite its topline growth meeting street expectations.Revenue growth of 12% from last year, was inline with estimates of ₹3,175 crore. However, rest of the parameters were pressured on a year-on-year basis.

The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter fell 24% from the year-ago quarter to ₹414.9 crore, while the street was working with a figure of ₹582 crore.

EBITDA margin for the quarter declined by over six percentage points to 13% from 19.2% last year. A 21% increase in Cost of Goods, driven by a 26% increase in raw material costs, 24% higher subcontracting charges and a 38% jump in purchase of stock-in-trade, led to the pressure on ABB India’s operating performance for the quarter.
Net profit for the period also declined by 21% from last year.The other major negative factor this quarter for ABB India was the decline in order inflow, which fell to ₹3,036 crore, a 12% decline from last year and 19% sequentially. Order book crossed the ₹10,000 crore mark, but increased only 6% from last year and 1% from March.

Additionally, the board has given its approval to appoint registered valuers to evaluate the Robotics division, which will now be incorporated in a wholly-owned subsidiary. However, no decision has been taken to divest the robotics business to either the parent company or any third party.

Shares of ABB India ended 2.3% lower on Friday at ₹5,384. The stock has declined 8.1% over the last one month.

Also Watch | Sanjeev Sharma, MD of ABB Indiaand T.K. Sridhar, CFO of ABB India, discuss Q2CY25 figures in an interview with CNBC-TV18.