India’s ABB Posts Modest Profit Rise on Steady Demand

Bangalore, May 9 (Reuters) – ABB India Ltd (ABB.NS), the Indian arm of Swiss engineering giant ABB Ltd (ABBN.S), reported a modest 3.3% rise in its first-quarter profit on Friday, buoyed by consistent demand across its electrification and motion segments, despite broader economic uncertainties and inflationary pressures in global markets.

Steady Profit Growth in Q1

The company posted a net profit of ₹4.75 billion ($55.63 million) for the quarter ended March 31, up from ₹4.59 billion in the same period a year earlier. While the growth was moderate, it underscores ABB India’s operational resilience and the ongoing infrastructure development and industrial expansion that continue to drive demand for engineering solutions in India.

The company’s total revenue rose 2.6% to ₹31.6 billion, supported by higher execution of existing orders and stable order inflows from key sectors including utilities, manufacturing, and transportation.

Segment-wise Performance

Electrification Division

ABB India’s electrification business, which includes products such as solar inverters, low-voltage systems, and electrical installation accessories, registered a 4.7% year-on-year revenue growth. This segment contributed approximately 43% of the company’s total revenue in the quarter. The steady performance reflects ongoing investments in energy infrastructure and the country’s transition to cleaner, more sustainable power systems.

Motion Division

The motion segment, responsible for manufacturing electric motors, generators, and drives, accounted for 34% of the company’s revenue. It reported a strong 8.2% growth in the quarter, fueled by continued demand from the industrial automation and process manufacturing sectors.

Order Intake and Backlog Execution

ABB India reported a total order intake of ₹37.51 billion during the quarter, representing a 4% increase compared to the same period last year. This growth in orders suggests healthy momentum in capital expenditure by both public and private sector clients. Analysts expect that the timely execution of these orders, especially from backlogged projects, will help bolster the company’s revenue growth in the upcoming quarters.

The Indian government’s ongoing emphasis on Make in India, electrification, and infrastructure upgrades continues to serve as a tailwind for capital goods manufacturers like ABB India.

Parent Company Performance and Global Outlook

In a related development, ABB Ltd, the company’s Swiss parent, reported better-than-expected Q1 results last month, citing strong demand across its global markets and improved order conversion rates. ABB’s global strategy of digital transformation, energy efficiency, and smart automation is expected to continue supporting its regional arms, including India.

Stock Market Reaction

ABB India’s shares rose by 2.9% on Friday following the announcement of its quarterly earnings, reflecting investor confidence in the company’s business fundamentals and future prospects. The stock has been among the top performers in the Indian engineering sector this year, supported by a solid order book and growing interest in green and smart technologies.

(1 USD = ₹85.3810)

Conclusion

ABB India’s first-quarter results highlight the company’s ability to deliver consistent growth amid a dynamic and competitive market landscape. With a strong pipeline of orders, balanced segment performance, and favorable government policies supporting industrial expansion, ABB India appears well-positioned to maintain its growth trajectory throughout 2025.

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