ABB
ABB
Capital Goods F&OKey Fundamentals
LargecapElectrical EquipmentCapital GoodsTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
3- Company is almost debt free.
- Company has delivered good profit growth of 57.1% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 50.0%
Weaknesses
2- Stock is trading at 15.7 times its book value
- Earnings include an other income of Rs.1,799 Cr.
Growth Rate
AI Analysis — Bull vs Bear
ABB India is a debt-free capital goods company with a market capitalisation of about Rs 1,51,377 Cr. Over five years it grew profit at a 57% CAGR and sales at an 18% CAGR, with a 3-year average ROE of 25%. Trailing twelve-month profit is down 13% while sales rose 10%. The stock trades at 50.5x earnings and 16.1x book value, and reported earnings include Rs 1,799 Cr of other income.
- Profit compounded at 57% CAGR over 5 years and 30% over 3 years, well ahead of sales growth. This points to sustained operating leverage and margin expansion over the medium term.
- Sales growth has picked up, with a 3-year CAGR of 16% and a 5-year CAGR of 18%, compared with only 5% over 10 years. This suggests the business has entered a stronger demand phase tied to electrification, automation and infrastructure spending.
- Return on equity has risen steadily, from a 10-year average of 17% to a 5-year average of 22% and a 3-year average of 25%. This reflects better capital efficiency.
- The company is almost debt free, so it has balance sheet flexibility and little exposure to interest rates in a capital-intensive sector.
- The company keeps a healthy dividend payout ratio of 50% and currently yields 1.26%. That signals cash generation and a return of capital to shareholders.
- The stock has delivered long-term compounding, with price CAGRs of 21% over 10 years, 31% over 5 years and 36% over the past year.
- Sales still grew 10% on a TTM basis despite the profit decline, so the revenue base is intact.
- The stock trades at 16.14x book value and 50.5x earnings. The implied earnings yield of about 2% leaves little room for error if growth disappoints.
- TTM profit fell 13% while TTM sales grew 10%. This points to margin compression and breaks from the 30% 3-year profit CAGR.
- Reported earnings include Rs 1,799 Cr of other income. Against implied trailing earnings of about Rs 3,000 Cr (market cap divided by P/E), that is a large non-operating component, so core operating earnings may be materially lower than headline profit.
- The stock rose 36% over the past year while TTM profit fell 13%. The gap means returns came from multiple expansion rather than earnings growth.
- The 10-year sales CAGR is only 5%, well below the recent 16-18%. This shows the business is exposed to capex cycles, and growth could return to lower historical levels.
- ROE for the last year was 22%, below the 3-year average of 25%. Return ratios may be moderating from their peak.
- The dividend yield of 1.26% is modest despite a 50% payout ratio, because the valuation is high. That limits income support if the price corrects.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- AI-led IT may trim costs Sep 2
Wipro says moving ABB's workplace services to AI-driven automation (self-service tools, virtual agents, automated issue resolution) should lower operating costs and speed up service delivery. The benefit goes mainly to the ABB group's internal IT for about 105,000 employees, so any effect on ABB India's margins is likely small.
- Wipro renews ABB workplace contract Sep 2
Wipro renewed its Digital Workplace Services contract with the ABB group. The first five-year deal, signed in February 2022, was worth over $150 million and covered 105,000 employees. The renewal had already been counted in Wipro's results for the year ended March 31, 2026, and it is a vendor deal where ABB is the customer, not a revenue-generating order for ABB India.
- Wipro-specific details not relevant Sep 2
The article also covers Wipro's TimeScope productivity-tracking tool (first rolled out to 5,000 employees) and its Q1 FY27 numbers: net profit of ₹3,357 crore (up 0.75% YoY), revenue of ₹24,479 crore (up 10%) and a 16% operating margin (down 130 bps). None of this affects ABB India's fundamentals.
TL;DR: The only news item is a Wipro story about renewing an IT services contract with the global ABB group, so it does little to change the outlook for ABB India Ltd. The AI-led workplace modernisation may bring small internal cost savings at the group level, but there is no new order, revenue or margin effect for the listed Indian business. The batch has no headwinds and no real positive catalysts, so it gives no read on whether the trend is improving or worsening. Investors should look instead to ABB India's order inflows, electrification and automation demand, and upcoming quarterly results.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,509 | 2,769 | 2,757 | 3,080 | 2,831 | 2,912 | 3,365 | 3,010 | 2,940 | 3,311 | 3,423 | 3,184 | 3,559 |
| Expenses | 2,160 | 2,331 | 2,340 | 2,515 | 2,288 | 2,372 | 2,708 | 2,450 | 2,539 | 2,810 | 2,896 | 2,776 | 3,112 |
| Operating Profit | 349 | 439 | 417 | 565 | 542 | 540 | 657 | 560 | 401 | 500 | 527 | 408 | 447 |
| OPM % | 14% | 16% | 15% | 18% | 19% | 19% | 20% | 19% | 14% | 15% | 15% | 13% | 13% |
| Other Income | 75 | 78 | 71 | 87 | 88 | 93 | 83 | 110 | 109 | 84 | 89 | 1,541 | 85 |
| Interest | 1 | 1 | 8 | 4 | 5 | 3 | 5 | 5 | 4 | 6 | 5 | 4 | 2 |
| Depreciation | 29 | 30 | 33 | 31 | 31 | 33 | 34 | 34 | 35 | 37 | 39 | 42 | 39 |
| PBT | 393 | 485 | 447 | 617 | 595 | 597 | 702 | 631 | 471 | 542 | 571 | 1,904 | 491 |
| Tax % | 25% | 25% | 24% | 26% | 25% | 26% | 25% | 25% | 25% | 25% | 24% | 6% | 26% |
| Net Profit | 296 | 363 | 339 | 459 | 443 | 440 | 528 | 475 | 352 | 409 | 433 | 1,784 | 362 |
| EPS in Rs | 13.95 | 17.12 | 15.98 | 21.67 | 20.93 | 20.79 | 24.94 | 22.4 | 16.6 | 19.3 | 20.43 | 84.17 | 17.1 |
Profit & Loss
| Particulars | Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 7,730 | 8,136 | 8,642 | 6,094 | 6,690 | 7,315 | 5,821 | 6,934 | 8,568 | 10,447 | 12,188 | 13,203 | 13,477 |
| Expenses | 7,154 | 7,402 | 7,932 | 5,669 | 6,224 | 6,777 | 5,553 | 6,368 | 7,600 | 8,950 | 9,877 | 11,158 | 11,594 |
| Operating Profit | 576 | 734 | 710 | 425 | 466 | 538 | 268 | 566 | 968 | 1,497 | 2,311 | 2,045 | 1,883 |
| OPM % | 7% | 9% | 8% | 7% | 7% | 7% | 4.6% | 8% | 11% | 14% | 19% | 15% | 14% |
| Other Income | 14 | 6 | 122 | 267 | 339 | 26 | 170 | 266 | 506 | 289 | 344 | 349 | 1,799 |
| Interest | 122 | 106 | 108 | 62 | 60 | 28 | 25 | 19 | 15 | 13 | 16 | 20 | 16 |
| Depreciation | 113 | 160 | 151 | 101 | 93 | 90 | 120 | 103 | 105 | 120 | 129 | 146 | 158 |
| PBT | 355 | 475 | 573 | 528 | 652 | 445 | 293 | 711 | 1,353 | 1,653 | 2,510 | 2,229 | 3,508 |
| Tax % | 36% | 37% | 35% | 21% | 22% | 32% | 25% | 27% | 25% | 25% | 25% | 25% | — |
| Net Profit | 229 | 300 | 374 | 420 | 511 | 303 | 219 | 520 | 1,016 | 1,242 | 1,872 | 1,668 | 2,988 |
| EPS in Rs | 10.78 | 14.15 | 17.67 | 19.82 | 24.11 | 14.32 | 10.35 | 24.53 | 47.96 | 58.61 | 88.33 | 78.73 | 141 |
| Div. Payout % | 34% | 26% | 23% | 22% | 20% | 34% | 48% | 21% | 11% | 50% | 50% | 50% | — |
Balance Sheet
| Particulars | Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 |
| Reserves | 2,770 | 2,966 | 3,244 | 3,565 | 3,965 | 3,478 | 3,564 | 4,003 | 4,897 | 5,902 | 7,033 | 7,794 | 9,297 |
| Borrowings | 371 | 600 | 600 | 608 | 7 | 14 | 58 | 37 | 33 | 49 | 52 | 85 | 145 |
| Other Liabilities | 3,639 | 3,800 | 3,844 | 4,673 | 5,063 | 4,167 | 3,926 | 3,991 | 4,346 | 5,008 | 5,264 | 5,718 | 6,252 |
| Total Liabilities | 6,822 | 7,409 | 7,731 | 8,888 | 9,077 | 7,701 | 7,590 | 8,073 | 9,318 | 11,001 | 12,391 | 13,638 | 15,736 |
| Fixed Assets | 1,400 | 1,298 | 1,255 | 1,219 | 893 | 742 | 783 | 817 | 899 | 994 | 1,062 | 1,195 | 1,249 |
| CWIP | 32 | 44 | 68 | 116 | 83 | 59 | 75 | 77 | 69 | 60 | 95 | 116 | 180 |
| Investments | 16 | 16 | 16 | 271 | 0 | 0 | 0 | 0 | 493 | 2 | 2 | 2 | 2 |
| Other Assets | 5,374 | 6,050 | 6,392 | 7,282 | 8,101 | 6,900 | 6,733 | 7,179 | 7,857 | 9,946 | 11,233 | 12,326 | 14,306 |
| Total Assets | 6,822 | 7,409 | 7,731 | 8,888 | 9,077 | 7,701 | 7,590 | 8,073 | 9,318 | 11,001 | 12,391 | 13,638 | 15,736 |
Cash Flow
| Particulars | Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 479 | 382 | 863 | 792 | 625 | 667 | 318 | 650 | 742 | 1,351 | 1,332 | 1,220 |
| Investing | -148 | -76 | -68 | -318 | 151 | -398 | 443 | -2,008 | 1,826 | -3,352 | -503 | 364 |
| Financing | -422 | 42 | -179 | -171 | -794 | -147 | -152 | -127 | -140 | -269 | -770 | -966 |
| Net Cash Flow | -91 | 347 | 615 | 302 | -17 | 123 | 609 | -1,485 | 2,428 | -2,270 | 59 | 617 |
| Free Cash Flow | 372 | 292 | 759 | 607 | 389 | 545 | 205 | 514 | 594 | 1,168 | 1,118 | 980 |
| CFO/OP | 104 | 79 | 152 | 252 | 182 | 156 | 157 | 135 | 102 | 115 | 86 | 87 |
Ratios
| Particulars | Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 149 | 152 | 125 | 166 | 92 | 97 | 106 | 99 | 89 | 89 | 89 | 88 |
| Inventory Days | 67 | 71 | 67 | 111 | 79 | 68 | 83 | 83 | 98 | 90 | 96 | 98 |
| Days Payable | 146 | 159 | 154 | 261 | 160 | 150 | 169 | 185 | 182 | 179 | 173 | 165 |
| Cash Conversion Cycle | 71 | 64 | 38 | 15 | 11 | 15 | 20 | -2 | 5 | 0 | 13 | 21 |
| Working Capital Days | 36 | 56 | 37 | -4 | -97 | 13 | -4 | -5 | -4 | -10 | -1 | 5 |
| ROCE % | 15% | 17% | 17% | 15% | 17% | 14% | 7% | 16% | 23% | 31% | 39% | 30% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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62 extracted metrics + investor summaries across FY11–FY26.
Documents
Frequently Asked Questions about ABB
What does ABB India Ltd do?
Where is ABB India Ltd (ABB) listed?
Which sector does ABB India Ltd belong to?
What is the market capitalisation of ABB India Ltd?
What is the PE ratio of ABB India Ltd?
What is the 52-week high and low of ABB India Ltd?
Does ABB India Ltd pay dividends?
What is the Return on Equity (ROE) of ABB India Ltd?
Company Information
ABB India Limited is an integrated power equipment manufacturer supplying the complete range of engineering, products, solutions and services in areas of Automation and Power technology. [1]
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