ABB India Share Price Jumps 8% After Quarterly Results: A Detailed Breakdown

ABB India shares surged nearly 8% today after the company announced its Q4 CY2025 results. It is important to note that ABB follows a calendar year, January to December, and not the Indian financial year. Therefore, the December quarter marks the company’s fourth quarter as well as the end of its full year CY2025. The rally comes after the company reported record order inflows and solid revenue growth, despite some pressure on margins.

In this blog, we will understand ABB India’s latest quarterly and annual performance in detail and see what is driving investor confidence.

Result Highlights: Strong Order Growth Steals the Show

ABB India reported its highest fourth quarter orders in the last five years.

• Revenue for the quarter came in at ₹3,557 crore, up 6% compared to last year. All business segments reported growth, showing broad-based demand.
• During Q4 CY2025, the company received fresh orders worth ₹4,096 crore, up 52% year on year. This sharp rise was supported by demand from data centers, automotive, railways, metals, buildings and infrastructure.
• However, profitability saw some pressure. Profit Before Tax came in at ₹578 crore, down 18% year-on-year. The PBT margin stood at 16.2%, lower than last year due to higher material costs, labour expenses, and currency-related impact.
• Profit After Tax for the quarter was ₹434 crore, down 18% on a year on year basis.

Orders vs Order Backlog: What Is the Difference?

Many investors confuse orders with order backlog, but they are different.

Orders represent the value of new contracts won during a specific period. For example, ABB received ₹4,096 crore worth of new orders in Q4 and ₹14,115 crore for the full year CY2025.

Order backlog represents the total value of orders that are yet to be executed. It is the pending confirmed business that will convert into revenue in the future.

As of December 31, 2025, ABB India’s order backlog stood at ₹10,471 crore, up 12% year on year. To understand it simply:

• Orders show current demand momentum.
• Revenue shows work already executed.
• Order backlog shows future revenue visibility.

For CY2025, ABB generated revenue of ₹13,203 crore while ending the year with a backlog of ₹10,471 crore. This strong backlog provides comfort that revenue growth can continue in coming quarters.

Full Year CY2025: Record Orders and Revenue

For the full calendar year 2025, ABB India delivered its highest-ever orders and revenue.

Total orders reached ₹14,115 crore, up 8% year-on-year. Revenue also grew 8% to ₹13,203 crore. Over the last five years, the company’s total orders have more than doubled, indicating steady long-term growth.

Profit Before Tax for the year was ₹2,230 crore, while Profit After Tax stood at ₹1,669 crore. The PBT margin for the year was 16.9%.

Return on Capital Employed was healthy at 21%, reflecting efficient use of capital.

Why Did the Stock React Positively?

The 8% jump in ABB India’s share price suggests that investors looked beyond the temporary margin pressure and focused on the company’s strong growth momentum and future visibility.

Here is a deeper look at what likely drove the rally.

1. Massive 52% Jump in Q4 Orders

The biggest highlight was the sharp 52% year on year growth in Q4 orders to ₹4,096 crore. This is the highest fourth quarter order inflow in the last five years.

Such strong order inflow shows that demand remains healthy across key sectors. The company received large orders from data centers, automotive companies, railways, infrastructure and metals. Strong order growth signals that customers continue to invest despite global uncertainties.

For investors, strong orders today mean stronger revenue potential tomorrow.

2. Record Annual Orders and Revenue

For the full calendar year 2025, ABB reported its highest-ever annual orders of ₹14,115 crore and revenue of ₹13,203 crore, both growing 8% year on year.

Record annual numbers indicate structural demand rather than one-time growth. Over the last five years, the company’s total orders have more than doubled. This kind of long-term expansion improves confidence in the company’s growth trajectory.

3. Order Backlog at ₹10,471 Crore Provides Visibility

ABB ended the year with an order backlog of ₹10,471 crore, up 12% year on year.

Order backlog represents confirmed business that is yet to be executed. A higher backlog gives revenue visibility for the coming quarters and reduces uncertainty. It also indicates that demand is not slowing down.

When investors see a growing backlog along with revenue growth, it signals sustained business momentum rather than short-term spikes.

4. Strong Cash Position and Dividend Support

The company’s cash position stood at ₹5,694 crore at the end of December 2025. A strong cash balance improves financial stability and allows the company to invest in growth while rewarding shareholders.

The board recommended a final dividend of ₹29.59 per share, taking the total dividend for CY2025 to ₹39.36 per share. Healthy dividends add to investor confidence, especially in volatile markets.

5. Margins Under Pressure, But Not a Structural Concern

While Profit Before Tax declined 18% in Q4 due to higher material costs, forex impact and labour expenses, investors appear to be treating this as a cost cycle issue rather than a demand issue.

In the current market environment, strong demand visibility often carries more weight than short-term margin compression.

Final Thoughts

ABB India’s Q4 and CY2025 results show strong demand across sectors and record order inflows. While cost pressures impacted margins, the company’s diversified portfolio, strong backlog, and solid cash position provide confidence for the future.

With infrastructure, railways, renewables, and data centers seeing continued investment in India, ABB India appears well positioned to benefit from long-term growth trends.

Investors will now watch margin stability and execution in the coming quarters, but for now, growth momentum remains strong.

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