Abb India Downgrade: Emkay Global Cuts Target Price to Rs 5600

ABB India Financial Report

Key Highlights

• Adjusted EBITDA declined by 406bps YoY, but exceeded our estimates by 50bps, standing at 15.5%.
• The company reported a 52% YoY growth in overall order inflow, reaching Rs41bn.
• Order inflow growth was driven by a 27% YoY increase in base orders and the inflow of large orders during the quarter.

Outlook and Recommendations

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

• The management expects order inflow to pick up, driven by green shoots in core industries.
• Base orders are expected to see sustained growth, supported by ABB's diversified end-market exposure and increasing penetration into tier 3/4 markets.
• We raise our estimates for CY26-27E revenue/earnings by 5%/2% on average, factoring in the order-inflow and backlog (+12% YoY).
• We downgrade ABB India to REDUCE from Add, while increasing our target price by ~6% to Rs5,600 from Rs5,300.