ABB India Ltd Q2 FY27 Results Analysis: Revenue Jumps 19.42%, EBITDA Margin Recovers 221 bps
ABB India Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 3,738.13 Cr (+19.42% YoY) and PAT growth of +8.19% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 3,738.13 Cr (+19.42% YoY) |
| PAT (Q2) | Rs. 442.52 Cr (+8.19% YoY) |
| EBITDA margin | 14.77% (-75 bps YoY) |
| EPS (Q2) | Rs. 20.89 (+8.18% YoY) |
Quarter Snapshot
Revenue grew 19.42% YoY led by Electrification (+39.80%), and EBITDA margin recovered 221 bps QoQ to 14.77%, the first quarter of management's promised operating-leverage recovery. However, the continuing-ops PAT margin of 11.77% missed management's 12-15% corridor for a second straight quarter, material costs rose 141 bps YoY, and Automation declined 15.98% YoY. The double-digit FY2026 revenue guide remains on track with 9M growth of 15.42%.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | Ahead — "the demand setup is the strongest part of the quarter" | +19.42% YoY, +5.04% QoQ | Played out |
| Margins | "continued gross-margin compression," tempered by QCO roll-off | Material ratio +141 bps YoY / flat QoQ; EBITDA margin −75 bps YoY but +221 bps QoQ | Partially |
| PAT margin corridor | Below the 12% floor again | 11.77% continuing — miss narrowed from 160 bps to 23 bps | Played out |
| Double-digit 2026 growth | "the more credible of the two headline guides" | 9M +15.42% | Played out |
| Mid-teen EBITDA target deferral continues | Expected | Not addressed in the filing | Not observable |
| Watch: orders/backlog, data-center share, CFO handover | Watch-list items | Not addressed in the filing — remain open for the call (Nov 16, 2026); Automation recovery not seen (revenue −15.98% YoY) — Automation | Not observable / Played out |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| PAT margin 12–15% corridor ("the PAT trajectory between 12% to 15% still holds" — Q3 FY 2025-26 earnings call) | Earnings call, Nov 2025 reaffirmation | 11.77% (continuing-ops PAT margin) — second consecutive quarter below the floor (10.40% in Q1 FY27), though the gap narrowed to 23 bps | Missed |
| Double-digit revenue growth in 2026 (contingent on market conditions and order finalization) | Prior earnings calls | +19.42% YoY (Q2); +15.42% (9M) | On Track |
| Operating leverage should improve margins "in the next two quarters" | Q2 CY2026 earnings call (Jul 31, 2026) | EBITDA margin +221 bps QoQ to 14.77%, but still −75 bps YoY — first of the two quarters; YoY not yet restored | Partially confirmed |
| "Demand remains fundamentally sound through H2 CY2026" | Q2 CY2026 press release/outlook | Revenue +19.42% YoY, +5.04% QoQ | Confirmed |
| QCO situation "relaxed significantly," imported-material overhang to roll off | Q1 FY 2026-27 earnings call (Aug 2026) | Material-cost ratio flat QoQ (62.90% → 62.91%), though +141 bps YoY — no fresh QoQ build; YoY layer still in the cost base | Partially confirmed |
Key Investment Insights
Key Positives
- Revenue grew 19.42% YoY to Rs.3,738.13 Cr, the strongest YoY print in the disclosed trend
- Electrification revenue grew 39.80% YoY to Rs.1,926.80 Cr with segment result up 28.92% YoY
- EBITDA margin recovered 221 bps QoQ to 14.77% from 12.56%
- Continuing-ops PAT grew 10.49% YoY to Rs.439.82 Cr; total PAT grew 8.19% YoY to Rs.442.52 Cr
- 9M revenue grew 15.42% YoY, on track for the double-digit FY2026 revenue guidance
- Employee costs fell to 6.01% of revenue from 6.88% YoY
- Normalized continuing PAT of Rs.435.12 Cr grew 9.31% YoY after removing the Rs.6.2 Cr PF surrender gain
Risk Factors
- Continuing-ops PAT margin of 11.77% missed management's 12-15% corridor for the second consecutive quarter, though the gap narrowed to 23 bps
- Material-cost ratio rose 141 bps YoY to 62.91% of revenue on commodity prices and rupee depreciation
- Automation segment revenue declined 15.98% and result declined 32.15% YoY
- EBITDA margin at 14.77% remains 75 bps below the year-ago 15.52%
- Motion segment result fell 4.42% YoY with margin down 246 bps to 13.00%
- Inventory build of Rs.192.14 Cr (vs Rs.34.03 Cr a year ago) depressed reported margin by ~231 bps of revenue
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.