Why ABB India shares tanked 6% today?

The electrification and automation major reported a 20% decline in net profit at ₹352 crore during the June quarter compared to the year-ago period, primarily due to the impact of forex volatility and higher expenses.

The company had reported a profit after tax of ₹443 crore in the same quarter of 2024, a company statement said. The company follows a January-December financial year.

According to the firm’s statement, ABB India has achieved a revenue of ₹3,175 crore for the second quarter, higher than ₹2,831 crore in the same period a year ago.

The company's total expenditure jumped to ₹2,801.1 crore in Q2 CY2025 from ₹2,323.9 crore a year ago. Its cash position continues to remain robust at ₹5,154 crore at the end of Q2 2025.

Total orders were at ₹3,036 crore for Q2 CY2025, down from ₹3,435 crore in April-June 2024 due to the impact of large order timing, while base orders increased.

The market segments for order momentum include electronics, railways, data centres, energy, metals and mining, and building and infrastructure.

However, ABB India continues to have a strong executable order backlog of ₹10,064 crore as of June 30, 2025 (compared to ₹9,517 crore a year ago).

The company reported an earning per share (EPS) of ₹16.62 for the quarter and ₹38.99 for H1 CY2025, reflecting the profitability of the operations.

Along with its second quarter earnings, ABB India’s Board of Directors also declared an interim dividend of ₹9.77 per equity share of face value of ₹2 each.

"With a strong revenue and backlog expansion, we have delivered yet another resilient performance for the second quarter and first half of the year. While profitability was impacted by forex volatility and one-offs during the quarter, we continued to deliver double-digit PAT margins for the 11th consecutive quarter. Cash position of the company remains healthy due to consistent efforts in collection," said Sanjeev Sharma, Country Head and Managing Director, ABB India.

Meanwhile, the company’s overall cash position continues to remain healthy at ₹5,154 crore at the end of Q2 and H1 CY2025 due to consistent efforts in collection. There was a short-term impact due to stocking up of inventory to meet future delivery, ABB said in a statement.

Following the earnings, ABB India shares were trading at ₹5,071 apiece, falling 5.87% on the National Stock Exchange.

Over the last five trading days, the stock has lost almost 10%, while for a month’s period, it has declined over 14%. Year-to-date, ABB India shares have plunged 28%.

Its market capitalisation stands at ₹1.07 lakh crore.

ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalisation expertise, ABB helps industries run at high performance while becoming more efficient, productive, and sustainable so they outperform.