ABB India Shares Plummet 7% After Q1 Earnings Release

ABB India shares plummeted 7% to ₹5,014.50, logging an intra-day low on the National Stock Exchange after the company announced its Q1 results. Profit after tax declined 21% to ₹352 crore, while revenue rose 12% to ₹3,175 crore. Nomura reduced its CY25 sales forecast by 2% due to muted order inflows and trimmed Ebitda margin forecasts for CY25.

ABB India shares plummeted 7% to ₹5,014.50, logging an intra-day low on the National Stock Exchange after the company announced its Q1 results. The stock's decline came after the company reported a 21% drop in profit after tax to ₹352 crore, while revenue rose by 12% to ₹3,175 crore. The selloff on the counter was attributed to muted order inflows and a reduction in Ebitda margin forecasts for CY25 by Nomura, who slashed its sales forecast by 2% [2].

The company's Q1FY26 results showed a mixed bag, with revenue growth outpacing profit decline. The revenue increase was driven by higher sales volumes, but the profit after tax fell due to increased costs and reduced margins. The Ebitda margin, which measures operating profitability, dropped from 19.2% to 13%, indicating a significant decline in operational efficiency.

Nomura's downgrade and the subsequent market reaction underscore investor concerns about ABB India's ability to maintain its growth trajectory amidst challenging market conditions. The company's performance in the first quarter is likely to impact its overall financial outlook for the year, and investors are closely watching for any signs of recovery or improvement in the second half of the financial year.

References:
[1] https://www.ndtvprofit.com/markets/itc-mcx-tata-power-abb-india-federal-bank-shares-react-to-q1-results
[2] https://www.business-standard.com/amp/markets/news/abb-india-shares-plunge-7-in-trade-nomura-decodes-stock-strategy-125080400639_1.html