ABB India Ltd Q1 FY27 Results Analysis: Revenue Surges 21%, Margin Pressure Persists

ABB India Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 3,558.87 Cr (+21.03% YoY) and PAT growth of +8.03% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue growth of 21% YoY was strong, driven by electrification demand from data centres and railways. However, margins compressed significantly, with PAT margin below the 12-15% guidance band, reflecting input cost and forex headwinds. The balance sheet was transformed post-Robotics divestment, enabling a special dividend, but margin recovery hinges on QCO easing and commodity relief.

Key Investment Insights

Key Positives

• Revenue grew 21.0% YoY to Rs.3,558.87 Cr, with Electrification up 30.9% YoY.
• CFO improved 65.6% to Rs.634.84 Cr in H1 CY2026; CFO/PAT ratio improved to 0.89x from 0.48x.
• FCF of Rs.415.53 Cr generated in H1 CY2026 despite capex tripling to Rs.219.31 Cr.
• Special dividend of Rs.90 per share declared, reflecting strong cash position post-Robotics divestment.
• Balance sheet transformed to near-debt-free with Rs.7,335.52 Cr in cash and deposits.

Risk Factors

• EBITDA margin compressed 108 bps YoY to 12.56%; PAT margin of 10.40% is below management's stated 12-15% target band.
• PAT (continuing) grew only 8.0% YoY, lagging revenue growth of 21.0% by 1,310 bps due to margin compression.
• All three segments experienced YoY margin compression: Motion -443 bps, Electrification -125 bps, Automation -257 bps.
• Rupee depreciation and input cost inflation (copper, silver) continued to pressure margins despite copper price relief in Q2.