Synopsis: ABB India shares rose 8% after a strong Q1 CY26 performance, with 26% YoY order inflow growth, robust demand across segments, and plans for a $75 million investment to expand manufacturing and R&D in India. 

The shares of this company are an integrated power equipment manufacturer supplying the complete range of engineering, products, solutions and services in areas of Automation and Power technology are in the spotlight after it rose by 8% in today’s market session after reporting a strong start to CY26 from its India operations.

With a market capitalisation of Rs.  1,61,881 cr, the shares of ABB India Ltd were trading at Rs. 7639.20, jumping 8% in today’s market session, making a high of Rs. 7824.95, up from its previous close of Rs. 7254.80 per share. 

What’s the News

ABB Ltd reported a strong start to CY26 from its India operations, with order inflows rising 26% year-on-year in Q1, significantly higher than analyst expectations of 7–9% growth. This sharp outperformance highlights robust demand across key segments such as electrification, motion, and automation solutions. 

The company also noted that India has now emerged as one of its most important markets, tied as the fourth-largest globally, reflecting the country’s growing role in ABB’s overall business strategy and long-term growth outlook.

Building on this momentum, ABB India Ltd has outlined plans to invest around $75 million in expanding its manufacturing footprint and strengthening research and development capabilities in India. This investment is aimed not only at catering to rising domestic demand but also at positioning India as a strategic export and innovation hub for regional markets. 

Reinforcing the positive outlook, IIFL Capital Services expects even stronger growth, projecting order inflows to increase by 30–32% in rupee terms. If achieved, this would represent a meaningful beat over Street estimates and signal sustained growth momentum for the company in the near term. 

About the company 

ABB India Ltd is the Indian subsidiary of the global ABB Group, a leader in electrification, robotics, automation, and industrial digitalisation. The company provides advanced technologies and solutions that help industries improve efficiency, productivity, and sustainability, serving sectors like utilities, transportation, infrastructure, and manufacturing. 

The company recorded its highest-ever order inflow of Rs. 14,115 crore, reflecting an 8% year-on-year growth. Its order backlog also strengthened significantly to Rs. 10,471 crore, indicating a healthy pipeline of future execution and demand visibility. Revenue for the year reached Rs. 13,203 crore, marking another record performance with steady growth supported by strong industrial demand and execution efficiency. Orders were also received for propulsion systems from Indian Railways, indicating demand from the organisation.

Profitability metrics also showed robust improvement. Profit before tax (PBT), excluding exceptional items, stood at Rs. 2,230 crore with a margin of 16.9%. Profit after tax came in at Rs. 1,669 crore with a margin of 12.6%. Earnings per share (EPS) increased to Rs. 78.78, reflecting improved shareholder value creation.

On the capital efficiency front, ROCE stood at a strong 21%, indicating effective utilisation of invested capital. The company also generated a healthy free cash flow of Rs. 693 crore, which grew significantly by 80%. Additionally, a final dividend of Rs.  29.59 per share was declared, reinforcing its strong cash generation and shareholder return policy. 

Overall, the CY2025 highlights reflect ABB India’s sustained growth momentum, strong order execution, improving profitability, and solid financial discipline across its operations.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Railway stock jumps 8% after announcing strong order inflows and expansion plans appeared first on Trade Brains.