ABB India share price surged over 4% on Friday, February 20, following the announcement of its fourth quarter earnings for the 2025 calendar year (Q4 CY25).
In this quarter, the company reported a consolidated net profit of ₹432.85 crore, marking an 18.08% decline year-on-year (YoY) from ₹528.41 crore in the December quarter of the prior year (Q4 CY24).
The decrease in profitability was primarily driven by rising material costs, currency fluctuations, the use of imported materials related to the QCO, and the effects of the Labor Code. However, the impact was partially mitigated through effective commodity hedging and efficiency gains, as detailed in a regulatory filing.
Revenue from operations climbed 5.71% YoY to ₹3,557.01 crore for Q4 CY25, up from ₹3,364.93 crore in the same period last year. Export revenue remained a vital growth driver across all major business divisions.
In terms of operational performance, the EBITDA (earnings before interest, tax, depreciation, and amortization) for the December quarter of CY25 stood at ₹546 crore, reflecting a decline from ₹657 crore during the same quarter last year.
The company achieved a significant milestone by securing the highest fourth-quarter orders in the last five years, totaling ₹4,096 crore—a remarkable 52% increase. This surge was powered by strong base business performance, along with the timing of large orders.
Furthermore, the board of directors has confidently recommended a final dividend of ₹29.95 per share on 21,19,08,375 equity shares with a face value of ₹2 each.
This proposal is set to receive shareholder approval at the upcoming Annual General Meeting (AGM). Upon approval, the dividend will be distributed after May 9, 2026. The board has also established May 2, 2026, as the record date for this dividend.
Brokerages are currently taking a neutral stance, driven by mixed signals from earnings, margins, and order growth across key sectors such as data centers, railways, and metals.
Should you buy, sell or hold?
According to a CNBC TV 18 news report, UBS has firmly issued a ‘neutral’ rating for ABB India, setting a target price at ₹5,310 per share, which signifies a potential downside of 7% from its previous close.
The company’s fourth-quarter results clearly outperformed consensus expectations, with orders, revenue, and adjusted EBITDA exceeding estimates by 23%, 2%, and 12%, respectively, and showing impressive year-on-year increases of 52%, 6%, and 7%.
Similarly, Macquarie has assigned a ‘neutral’ rating to ABB India, establishing a target price of ₹5,420 per share, pointing to a 5% downside from the previous close.
Their analysis confirms that fourth-quarter earnings met expectations, with revenue climbing 6% year-over-year, driven primarily by notable growth in motion (up 7%) and electrification (up 6%). However, the adjusted profit after tax (PAT) faced a decline of 9% compared to last year.
Nomura has taken a more cautious stance with a ‘reduce’ rating for ABB India, recommending a target price of ₹4,620 per share, reflecting a significant 19% downside from its previous close.
Their report highlights a remarkable surge in fourth-quarter order inflows, which skyrocketed by 52% to ₹4,100 crore, while the adjusted EBITDA exceeded estimates by 19%.
Nomura asserts that ABB is well-positioned to seize substantial opportunities from sustained investments in infrastructure, rail, grid modernization, and renewables across diverse sectors, including metals, mining, energy, chemicals, data centers, and electronics.
ABB India share price today
ABB India share price today opened at an intraday low of ₹5,700 apiece on the BSE, the stock touches an intraday high of ₹6,118 apiece.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, after a flat start, the stock witnessed strong traction, breaking above its recent consolidation range and confirming a flag breakout on the daily chart. The move is supported by price and volume expansion, indicating strength in the ongoing uptrend.
“We expect the rally to extend in the near term, with any dip towards the breakout zone around 5,950 likely to offer a buying opportunity. As per the pattern implication, prices can gradually move towards 6,700 over time,” said Bhosale.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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