ABB India Limited (ABB) AI Stock Analysis

• Market Cap: ₹1.24T
• Dividend Yield: 0.83%
• Average Volume (3M): 10.92K
• Price to Earnings (P/E): 76.9
• Beta (1Y): 1.61
• Revenue Growth: 12.35%
• EPS Growth: 4.87%
• Country: IN
• Employees: 3,625
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 22.80
• Shares Outstanding: 211,908,370
• 10 Day Avg. Volume: 12,255
• 30 Day Avg. Volume: 10,922
• PEG Ratio: -5.97
• Price to Book (P/B): 13.98
• Price to Sales (P/S): 8.30
• P/FCF Ratio: 85.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹6,700.00
• Price Target Upside: 28.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 92.9
• Revenue Forecast (FY): ₹146.32B

• Rating: 72 Outperform
• Price Target: ₹6,344.00 ▲(21.48% Upside)
• Action: Upgraded Date: 02/20/26
• Date: Action: Upgraded 02/20/26

The score is driven primarily by strong financial quality (growth and profitability improvements with very low leverage). Technicals are supportive but show overextended momentum that may limit near-term upside. The main drag is valuation, with a very high P/E and low dividend yield.

Positive Factors

Conservative balance sheet

Very low leverage gives ABB India durable financial flexibility: it reduces refinancing risk, supports competitive bidding on large projects, and permits continued investment in services, digital and execution capabilities. This structural strength helps the company weather cyclicality and fund growth internally.

Multi-year revenue growth

Sustained top-line expansion across 2021–2025 reflects secular demand for electrification, automation and infrastructure. Persistent growth expands the installed base, which in turn supports recurring service, spare-parts and upgrade revenues—strengthening long-term revenue visibility and customer lock-in.

Diverse, solutions-led business model

A mix of product sales, engineered projects, lifecycle services and digital/solutions revenue reduces single-cycle dependence. Recurring service and aftermarket work provide steadier cash flow while projects and software increase wallet share per customer, creating durable revenue and margin optionality.

Negative Factors

2025 growth and margin slowdown

A step-down in growth and compressed gross/EBIT/net margins signals emerging mix, pricing or cost pressures that can persist if structural demand or pricing weakens. Reduced operating leverage undermines earnings scalability and raises uncertainty about medium-term margin sustainability.

Modest cash conversion / FCF volatility

While free cash flow has been healthy historically, low operating-cash-to-profit conversion and FCF volatility imply working-capital swings and timing risks. This makes internal funding of capex, services expansion or larger projects less predictable and can constrain strategic flexibility in tougher cycles.

Unconfirmed return sustainability for 2025

Absent 2025 ROE disclosure creates uncertainty about whether historically high returns persist after the recent slowdown. If returns have weakened, the company may face limits on self-funded growth and shareholder returns, making long-term profitability and capital allocation less certain.

ABB India Limited Business Overview & Revenue Model

Company Description

ABB India Limited develops and sells products and system solutions to utilities, industries, channel partners, and original equipment manufacturers in India and internationally. The company operates through Motion, Robotics and Discrete Automation, Electrification, and Process Automation segments. The Motion segment produces and provides motors, generators, and drives that provide power, motion, and control for a range of automation applications; and offers solutions and related services. The Robotics and Discrete Automation segment provides value-added solutions in robotics, machine, and factory automation. The Electrification segment offers a range of digital and connected solutions for low- and medium-voltage applications, including EV infrastructure, solar inverters, modular substations, distribution automation, power protection, wiring accessories, switchgear, enclosures, cabling, sensing, and control products. The Process Automation segment provides products, systems, and services, such as turnkey engineering, control systems, measurement products, life cycle services, outsourced maintenance, and industry specific products for the optimization of the productivity of industrial processes in oil and gas, power, chemicals and pharmaceuticals, pulp and paper, metals and minerals, marine, and turbocharging industries. The company was formerly known as ABB Limited and changed its name to ABB India Limited in June 2013. ABB India Limited was incorporated in 1949 and is based in Bengaluru, India. ABB India Limited is a subsidiary of ABB Asea Brown Boveri Ltd.

How the Company Makes Money

ABB India Limited generates revenue through multiple streams, primarily by selling products and providing services across its core sectors. Key revenue streams include the manufacturing and distribution of electrical equipment such as switchgear, transformers, and wiring accessories, as well as automation solutions that enhance industrial processes. The company also earns income from service contracts, maintenance, and upgrades for its installed systems. Additionally, ABB India engages in strategic partnerships and collaborations with other companies and government entities, which can lead to large-scale projects and contracts that significantly contribute to its earnings. The increasing demand for automation and digitalization solutions in various industries further bolsters ABB's revenue potential, allowing it to tap into emerging markets and technological advancements.

ABB India Limited Financial Statement Overview

Summary

Strong overall financial profile supported by meaningful multi-year revenue growth, improved profitability versus 2020–2021, and an exceptionally low-debt balance sheet. Offsets include a noticeable 2025 slowdown versus 2024 (slower growth and margin compression) and somewhat uneven cash-flow dynamics with modest cash conversion vs earnings.

Income Statement

Revenue has scaled meaningfully from 2021 to 2025 (annual revenue up strongly over the period), supporting a clear multi-year growth trajectory. Profitability improved sharply versus 2020–2021, with net margins rising into the low-to-mid teens in 2022–2025. However, 2025 shows a noticeable step-down versus 2024: revenue growth slowed to mid-single digits and gross, EBIT, EBITDA, and net margins all compressed, indicating some mix/price or cost pressure and slightly less operating leverage in the most recent year.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (debt-to-equity consistently around ~1–2% or less), giving strong financial flexibility and low refinancing risk. Equity has steadily expanded alongside asset growth, reflecting retained profitability over time. The main drawback is that returns on equity, while solid in 2022–2024 (roughly low-20s to mid-20s), are not provided for 2025 and therefore recent return sustainability cannot be fully confirmed from the available data.

Cash Flow

Cash generation is generally healthy, with free cash flow tracking a large share of net income (roughly ~0.73–0.86 across the years), which supports earnings quality. Operating cash flow and free cash flow also expanded materially versus 2020–2022 as the business grew. Offsetting this, the cash conversion vs earnings appears modest (operating cash flow is only about a quarter of net income in recent years), and free cash flow growth has been uneven (including a decline in 2024), suggesting working-capital swings or timing effects that can introduce volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	125.00B	132.03B	120.88B	103.67B	84.98B	68.64B
Gross Profit	46.50B	40.28B	45.83B	34.15B	26.79B	20.26B
EBITDA	25.64B	20.43B	26.58B	17.91B	14.79B	8.36B
Net Income	17.95B	16.68B	18.72B	12.42B	10.16B	5.20B
Balance Sheet
Total Assets	128.00B	136.38B	123.91B	110.01B	93.18B	80.73B
Cash, Cash Equivalents and Short-Term Investments	52.62B	58.35B	56.04B	48.15B	36.40B	26.85B
Total Debt	732.20M	1.40B	518.80M	489.80M	330.90M	366.60M
Total Liabilities	56.05B	58.02B	53.16B	50.57B	43.79B	40.28B
Stockholders Equity	71.94B	78.36B	70.75B	59.45B	49.39B	40.45B
Cash Flow
Free Cash Flow	0.00	12.80B	11.18B	11.68B	5.74B	4.77B
Operating Cash Flow	0.00	15.19B	13.32B	13.51B	7.42B	6.49B
Investing Cash Flow	0.00	502.60M	-5.03B	-33.52B	18.26B	-20.08B
Financing Cash Flow	0.00	-9.53B	-7.70B	-2.69B	-1.40B	-1.27B

ABB India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5222.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ABB, the sentiment is Positive. The current price of 5222.45 is below the 20-day moving average (MA) of 5802.04, below the 50-day MA of 5342.63, and below the 200-day MA of 5407.72, indicating a bullish trend. The MACD of 215.43 indicates Negative momentum. The RSI at 70.51 is Negative, neither overbought nor oversold. The STOCH value of 63.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ABB.

ABB India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HONAUT	74 Outperform	₹279.40B	55.30	―	0.32%	13.28%	-2.20%
ABB	72 Outperform	₹1.24T	76.90	―	0.83%	12.35%	4.87%
CUMMINSIND	72 Outperform	₹1.36T	60.77	―	1.14%	20.23%	18.69%
SCHAEFFLER	72 Outperform	₹638.12B	55.47	―	0.73%	14.14%	16.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BHEL	58 Neutral	₹911.95B	112.00	―	0.18%	13.30%	137.07%
THERMAX	58 Neutral	₹374.78B	51.95	―	0.48%	3.37%	-19.95%

ABB India Limited Corporate Events

ABB India Publishes FY2025 Audited Results Extract in Leading Dailies

ABB India Limited has notified the stock exchanges that it has published an extract of its audited financial results for the fourth quarter and financial year ended December 31, 2025 in leading newspapers. The disclosure, made under Regulation 47 of SEBI’s Listing Obligations and Disclosure Requirements, underscores the company’s compliance focus and ensures wider public access to its annual financial performance data.

The results extract appeared on February 20, 2026 in the English daily Business Standard across all editions and in the Kannada daily Vijay Karnataka’s Bengaluru edition. By disseminating its audited numbers through both national and regional publications, ABB India is broadening transparency for shareholders and potential investors, reinforcing its governance standards and supporting informed decision-making in the market.

ABB India Wins Major Propulsion Order for Mumbai Metro Expansion

ABB India has secured a major order from Titagarh Rail Systems to supply integrated propulsion equipment and Train Control and Management System (TCMS) software for 40 six‑car trainsets serving Mumbai Metro’s upcoming Lines 5 and 6, key corridors designed to improve connectivity, cut travel times and ease congestion across the city’s extended suburbs. The contract, which marks ABB’s entry into India’s 25 kV AC metro segment, will be fulfilled largely through its Bengaluru and Vadodara facilities and local engineering teams, reinforcing its role as a preferred provider of energy‑efficient, low‑emission rail technologies and deepening its footprint in India’s urban transport build‑out, with implications for stronger positioning in future metro tenders and a broader push toward sustainable mobility solutions.

ABB India Clears Rs 1,568-Crore Transfer of Robotics Business to New Subsidiary

ABB India Limited has approved a restructuring of its robotics operations in line with the global ABB group’s previously announced spin-off and divestment of its robotics business to SoftBank Group. The company has incorporated a wholly owned subsidiary, ABB Robotics India Private Limited (INRBT), and its board has cleared the sale of ABB India’s shareholding in INRBT to ABB Robotics Schweiz AG for Rs 1 lakh plus related expenses, followed by the transfer of ABB India’s robotics business to INRBT on a slump sale basis for at least Rs 1,568.2 crore, subject to shareholder approval via a postal ballot for the material related-party transaction. This move realigns the ownership of the Indian robotics business with ABB’s global robotics structure and the planned divestment, potentially reshaping ABB India’s portfolio mix and revenue composition while clarifying the corporate positioning of its robotics operations within the wider ABB and SoftBank ecosystem.

ABB India Forecloses MOTR Division Head’s Contract, Installs Interim Leadership

ABB India Limited has announced a change in senior management, foreclosing the fixed-term employment contract of Mr. Moonish Ghuge, who was serving as Local Division President – MOTR and classified as senior managerial personnel under SEBI Listing Regulations, with his duties ending immediately on 19 January 2026. To maintain leadership continuity in the MOTR division, the company has appointed Mr. Roger Buchmann, currently Global Product Line Manager for traction packages, as the ad-interim head of the MOTR division effective the same date, signalling an internal stopgap arrangement while ABB India searches for a permanent successor, a move that aims to ensure operational stability in a key business unit and regulatory compliance in its market disclosures.

ABB India Ships First Locally Made Wind Power Converter After Gamesa Electric Acquisition

ABB India has dispatched its first locally manufactured wind power converter from its Nelamangala facility in Bengaluru following the acquisition of Gamesa Electric’s power electronics business in December 2025, marking a key step in integrating proven wind energy conversion technologies into its portfolio. The milestone underlines ABB’s commitment to accelerating the energy transition through advanced, India-made wind, solar, and battery energy storage solutions, reinforcing both its own position in the renewable energy value chain and India’s role as a global renewable manufacturing hub as the country targets a sharp expansion in wind capacity by 2030.

ABB India Limited Announces Board Meeting and Trading Window Closure

ABB India Limited has announced a scheduled Board of Directors meeting on February 19, 2026, to approve the audited financial results for the fourth quarter and the financial year ending December 31, 2025. The meeting will also consider recommending a dividend on equity shares and address matters related to the upcoming Annual General Meeting. Additionally, the company has implemented a trading window closure from December 15, 2025, to February 21, 2026, in compliance with insider trading regulations, affecting directors and designated employees.

ABB India Receives ESG Rating of 76 for FY 2025

ABB India Limited announced that it has received an ESG rating of ’76’ for the fiscal year 2025 from NSE Sustainability Ratings & Analytics Ltd. This rating was independently prepared based on publicly available information, without direct engagement from ABB India. The rating reflects the company’s commitment to environmental, social, and governance standards, potentially impacting its industry positioning and stakeholder perceptions positively.

ABB India Unveils Advanced Machinery Drive for Enhanced Automation

ABB India has launched the ACS380-E drive, a next-generation machinery drive designed to enhance automation-centric machine building with advanced connectivity, cybersecurity, and ease of commissioning. This launch aligns with India’s manufacturing shift towards digitalization and smart-factory upgrades, supporting industries such as textile, cable and wire, and plastics in meeting evolving regulatory standards and improving efficiency.

ABB India Unveils Advanced ACS380-E Machinery Drive

ABB India Limited has launched the ACS380-E, a next-generation machinery drive designed for high performance, connectivity, and cybersecurity. This product supports the digitalization and smart-factory upgrades in India’s manufacturing sector, offering advanced connectivity and easy commissioning. It is engineered for various industrial applications, helping machine builders meet evolving regulatory standards and improve operational efficiency.