ABB India Q4 CY25: Orders Jump 52%, Stock Rallies

Why ABB India was buzzing in trade

ABB India shares jumped in intraday trade on February 20, 2026 after the company reported its Q4 CY25 (October to December 2025) results. The move came despite an 18% year-on-year decline in profit, as investors appeared to focus on a sharp acceleration in order inflows and a better-than-feared operating margin profile after adjustments. The company reported revenue growth in line with expectations and highlighted broad-based demand across a diversified industrial portfolio. Market attention was also drawn to the board’s final dividend recommendation for CY2025.

Stock reaction: orders trump near-term profit pressure

On the day of the reaction, ABB India shares were reported up more than 8% intraday after results. Another reported snapshot showed the stock up 4.27% at ₹5,963.50 in trade, extending its recent move. The positive reaction was largely linked to the scale of the order intake in Q4 and the visibility provided by a growing order backlog. The results also included an adjusted margin disclosure that excluded labour code related exceptional impact, helping investors compare underlying operating performance.

Q4 CY25 at a glance: revenue up, profitability down

ABB India reported Q4 CY25 revenue from operations of ₹3,557.01 crore, up 5.7% year-on-year. Net profit (profit after tax) came in at about ₹433 crore (₹432.85 crore reported in one disclosure), down around 18% from the year-ago quarter. Profit before tax (PBT) fell to ₹578 crore, with PBT margin at 16.2% versus 21.0% a year earlier. The company cited margin pressures linked to input costs, forex volatility, and other operating factors during the quarter.

Orders: the key headline in the quarter

The strongest data point in the release was order momentum. Q4 order inflows surged 52% year-on-year to ₹4,096 crore, described as the highest fourth-quarter intake in five years and a five-year high for Q4. The company attributed the jump to strong base business execution along with the timing of large orders. Order wins were supported by demand across segments including data centers, automotive, railways, metals, and infrastructure.

Margin picture: what changed and why

Operating margins contracted materially in Q4 CY25 compared with Q4 CY24. Reported operating margin was cited at 15.3% versus 19.5% a year ago, while operational EBITA margin was 14.6% versus 19.0%. Adjusted EBITDA margin was reported at 17.2% after excluding exceptional items related to labour code implementation. Separately, commentary referenced a labour code impact of around ₹66 crore, and indicated that excluding this impact would have implied an EBITA margin closer to 17%.

The company attributed the profitability decline to higher material costs, higher labour expenses, forex movements, and product or project mix. One disclosure noted material costs rising to about 61% of revenue from 48% in the prior period, contributing to margin contraction. The company also pointed to QCO related imported material usage, while noting that commodity hedging and efficiency gains partly offset the headwinds.

Demand drivers across segments

ABB India said revenue grew across all business areas during the quarter. It flagged growth drivers and order placements from automotive, renewables, and data centers, alongside core sectors such as metals and cement. In the Electrification business, higher export revenue from the Distribution Solutions and Smart Power divisions was mentioned, and other divisions also registered revenue growth. In Motion, higher revenues across divisions were offset by a reduction in the Motion Service division.

Full-year CY2025: record orders and record revenue

For the full calendar year 2025, ABB India reported record orders of ₹14,115 crore and record revenue of ₹13,203 crore, both up 8% year-on-year. The order backlog grew 12% year-on-year to ₹10,471 crore as of December 31, 2025, supporting revenue visibility. Full-year PBT was ₹2,230 crore, and the PBT margin was 16.9%. Return on capital employed (ROCE) was reported at 21%.

Cash, working capital and EPS disclosures

ABB India reported a cash position of ₹5,694 crore at the end of Q4 and CY2025. It noted that net working capital increased mainly due to inventories built consciously to support delivery of the backlog as per agreed schedules. Income tax expense for the quarter was ₹143.3 crore with an effective tax rate of 24.8%. EPS was reported at ₹20.43 for Q4 and ₹78.73 for CY2025.

Dividend: final payout recommendation for CY2025

The board recommended a final dividend of ₹29.59 per share, subject to shareholder approval. The total dividend for CY2025 was stated at ₹39.36 per equity share, which includes an interim dividend of ₹9.77 per share. Alongside order momentum, the dividend recommendation added to the positive tone around capital return.

Key numbers table

What investors are watching next

ABB India’s Q4 outcome shows a clear split between growth and profitability. The company delivered mid-single digit revenue growth and a sharp rebound in quarterly order intake, but margins and profit were pressured by input costs, labour costs and forex related factors. For investors, the monitorables remain whether cost pressures moderate, and how quickly strong order inflows convert into revenue without further margin dilution. The next key checkpoints will be subsequent quarterly updates on execution, backlog conversion, and any commentary on input cost and currency impacts.