ABB India Electrification Orders Rise 117% as Automation Revenue Falls

ABB India recorded 117% year-on-year order growth in Electrification in the third quarter of calendar year 2026 (Q3 CY2026), taking divisional orders to Rs 2,780 crore, while Automation revenue fell 16% to Rs 505 crore because of the timing of systems-order deliveries. Electrification revenue rose 40% to Rs 1,927 crore.

Why did ABB’s segment performance diverge in Q3 CY2026?

ABB’s segment performance diverged because Electrification converted broad-based demand and backlog into Rs 1,927 crore of Q3 CY2026 revenue, up 40% year on year, while Automation reported Rs 505 crore, down 16%, citing the timing of systems-order delivery. Motion sat between the two divisions, recording 15% order growth to Rs 1,477 crore and 14% revenue growth to Rs 1,336 crore.

ABB’s continuing operations excluding Robotics received total orders of Rs 4,733 crore in Q3 CY2026, up 56% year on year, while revenue increased 19% to Rs 3,738 crore. Electrification posted the fastest growth in both orders and revenue, whereas Automation’s revenue declined by Rs 96 crore from the year-earlier quarter.

What drove ABB’s Electrification growth?

ABB’s Electrification growth was driven by broad-based demand, including an uptick in smart power and distribution solutions, with order momentum in data centres, energy, chemicals, and food and beverage. Orders reached Rs 2,780 crore in Q3 CY2026 from Rs 1,284 crore a year earlier, an increase of Rs 1,496 crore, and rose from Rs 2,424 crore in Q2 CY2026.

Revenue increased to Rs 1,927 crore from Rs 1,378 crore in Q3 CY2025, supported by effective price management, increased volume, stronger backlog execution and increased export revenue, according to ABB. The annual revenue growth rate rose from 31% in Q2 CY2026 to 40% in Q3 CY2026, while quarterly revenue increased by Rs 123 crore from Rs 1,804 crore.

Electrification’s order backlog was Rs 5,784 crore at the end of Q3 CY2026, 73% above the prior-year level. Profit before interest and tax (PBIT) was Rs 349 crore, with an 18.1% PBIT margin, compared with Rs 271 crore and 19.6% respectively in Q3 CY2025; ABB said material cost primarily affected the margin.

Why did ABB’s Automation revenue fall 16%?

ABB’s Automation revenue fell 16% year on year to Rs 505 crore in Q3 CY2026 because systems-order deliveries were timed differently, according to the presentation. Revenue was Rs 601 crore in Q3 CY2025 and Rs 524 crore in Q2 CY2026, meaning the division also reported a Rs 19 crore sequential reduction.

Orders nevertheless rose 4% year on year to Rs 499 crore, compared with Rs 481 crore in Q3 CY2025, with demand from metals and cement sectors and increased export orders during the quarter. Q3 CY2026 orders were below the Rs 583 crore reported in Q2 CY2026, and the annual increase was slower than Electrification’s 117% rise and Motion’s 15% rise.

Automation generated PBIT of Rs 72 crore at a 14.2% margin in Q3 CY2026, compared with Rs 105 crore and a 17.5% margin a year earlier. ABB attributed the change to sluggish execution and higher manufacturing and associated expenses, while the division’s order backlog was Rs 2,245 crore, up 5% year on year.

How did ABB’s business mix and margins change?

ABB’s revenue mix shifted toward Electrification, which represented 51% of Q3 CY2026 revenue versus 44% in Q3 CY2025. Automation’s share declined to 14% from 19%, while Motion represented 35% compared with 37%, consistent with 40% revenue growth in Electrification, 14% growth in Motion and a 16% decline in Automation.

Products accounted for 83% of Q3 CY2026 revenue, up from 77% a year earlier, while projects fell to 7% from 10% and services declined to 10% from 13%. Partner channels increased to 50% of revenue from 44%, whereas end users declined to 32% from 38%; exports increased by one percentage point to 13%, leaving domestic revenue at 87%.

At the company level, operational earnings before interest, tax and amortisation (operational EBITA) increased 15% to Rs 484 crore in Q3 CY2026, but the margin declined to 12.9% from 13.4%. ABB said volume gains were offset by mix, commodity and logistics costs and foreign exchange, while material cost represented 62.9% of revenue against 61.5% a year earlier.

What does ABB’s backlog indicate for future execution?

ABB’s total order backlog reached Rs 12,927 crore at the end of Q3 CY2026, up 36% year on year and 9% from Rs 11,898 crore at the end of Q2 CY2026. Electrification accounted for Rs 5,784 crore of disclosed divisional backlog, Motion for Rs 4,964 crore and Automation for Rs 2,245 crore.

The backlog profile differed materially by division: Electrification’s 73% year-on-year increase exceeded Motion’s 20% and Automation’s 5%. ABB reported strong backlog execution in Electrification during Q3 CY2026, while Automation identified delivery timing and sluggish execution as factors affecting its revenue and PBIT outcome.

The company’s total orders rose faster than revenue in Q3 CY2026, at 56% versus 19%, while total backlog expanded to Rs 12,927 crore from Rs 9,538 crore a year earlier. The presentation does not provide a timetable for conversion of that backlog, but it identifies systems-order delivery timing as the immediate execution issue in Automation.

Conclusion

ABB’s Q3 CY2026 segment figures show that Electrification was the principal source of growth, with Rs 2,780 crore of orders and Rs 1,927 crore of revenue, while Motion added growth in both measures. Automation’s orders increased 4% to Rs 499 crore, but revenue fell to Rs 505 crore and PBIT declined to Rs 72 crore, producing an uneven divisional outcome beneath the company’s 19% revenue growth.

The next issue to watch is backlog conversion, particularly from Electrification’s Rs 5,784 crore and Automation’s Rs 2,245 crore of backlog within ABB’s Rs 12,927 crore total. ABB has identified material-cost effects in Electrification, company-level mix, commodity, logistics and foreign-exchange effects, and the timing of Automation systems deliveries as disclosed factors affecting future execution.