ABB India Shares Crash Over 12% In 5 Days Despite 275% Profit Jump; Brokerages Cautious After Q1 CY2026 Result

Shares of ABB India are under heavy selling pressure today after the company's latest quarterly results triggered concerns over margin erosion and weak core profitability despite a huge jump in reported net profit.

ABB India shares were trading at Rs. 6,384 on the NSE at the time of writing, falling nearly 8.96% or Rs. 628.50 in a single session. The stock opened at Rs.6,662 and touched an intraday high of Rs.6,687 before slipping to a low of Rs.6,325. Over the past five trading sessions, ABB India shares have declined 12.07%, losing Rs.876 in market value.

However, despite the recent correction, ABB India stock has still gained 23.33% so far in 2026, outperforming many industrial and capital goods peers.

ABB India Q1 CY2026 Results

ABB India reported revenue from operations of Rs.3,184 crore for the quarter ended March 2026, up 5.8% YoY from Rs.3,010 crore in the corresponding period last year.

Consolidated net profit surged 275% YoY to Rs.1,784 crore compared to Rs.475 crore in Q4 FY25. However, the sharp rise in headline profit was largely due to a one-time exceptional gain from the sale of its robotics business.

Meanwhile, profit from continuing operations told a much weaker story. Standalone PAT from continuing operations declined 25.2% YoY to Rs.342 crore from Rs.457 crore last year.

Operating margins also came under severe pressure. EBIT margin dropped to nearly 12.9% from around 18.5% a year ago, reflecting a sharp contraction of nearly 580 basis points.

Robotics Business Sale Helped Headline Profit Surge

The biggest factor behind ABB India's massive profit jump was the slump sale of its robotics division to ABB Robotics India Pvt Ltd.
The transaction, completed on March 1, 2026, generated a one-time gain of Rs.1,658.5 crore, which was reported under discontinued operations in accordance with Ind AS 105 accounting standards.

Without this exceptional gain, ABB India's earnings performance would have appeared weaker, with core profitability declining due to rising costs and execution challenges.

Brokerages Turn Cautious On ABB India Stock

Brokerage firms turned increasingly cautious on ABB India after the company's Q1 CY2026 performance missed expectations.

HDFC Securities maintained its "Add" rating with a target price of Rs.6,996 but acknowledged that margins were impacted by execution disruptions, commodity inflation and forex volatility. The brokerage highlighted strong demand from data centers, railways and the energy sector, noting that data centers now contribute nearly 12-16% of ABB India's order backlog.

Elara Capital downgraded ABB India to "Sell" with a target price of Rs.6,180, citing muted automation demand, weak motion segment growth and continuing margin pressure. The brokerage also cut CY26 earnings estimates, stating that most positives are already reflected in current valuations.

Meanwhile, Motilal Oswal Financial Services downgraded the stock to "Neutral" from "Buy" with a target price of Rs. 6,600. The brokerage warned that meaningful margin recovery could take longer than expected due to rising raw material costs, pricing pressure, lower execution and adverse currency movements.

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