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ABB India Ltd

| Integrated Annual Report 2025-26

Report Source

⬤9th Apr 26

Summary : ABB India achieved record orders and revenue in 2025, driven by strategic focus on electrification, automation, and digitalization, despite market cyclicality and geopolitical shifts.

Annual Report Analysis & Insights

Financial Disclosures

  1. Cost of raw materials: ₹6,648.87 Crores (2025).
  2. Employee benefit expenses: ₹974.81 Crores (2025).
  3. Other expenses: ₹2,130.54 Crores (2025).
  4. Finance costs: ₹19.89 Crores (2025).
  5. Depreciation and amortisation: ₹145.53 Crores (2025).
  6. Undisputed trade receivables (Not Due): ₹2,449.80 Crores (2025).
  7. Credit impaired receivables: ₹131.84 Crores (2025).
  8. Total Revenue from operations: ₹13,203 Crores (2025) vs ₹12,188 Crores (2024).
  9. Sale of products: ₹12,413.89 Crores (2025) vs ₹11,536.08 Crores (2024).
  10. Sale of services: ₹651.43 Crores (2025) vs ₹551.59 Crores (2024).
  11. Electrification segment revenue: ₹5,712.65 Crores (2025).
  12. Motion segment revenue: ₹4,560.62 Crores (2025).
  13. Net cash flow from operating activities: ₹1,219.51 Crores (2025).
  14. Net cash flow used in investing activities: ₹363.30 Crores (2025).
  15. Net cash flow from financing activities: ₹(966.23) Crores (2025).
  16. Cash and cash equivalents (closing): ₹1,552.57 Crores (2025).
  17. Total claims against company not acknowledged as debts: ₹570.53 Crores (2025).
  18. Outstanding performance bank guarantees: ₹29.01 Crores (2025).
  19. Total Assets: ₹13,638.48 Crores (2025) vs ₹12,391.33 Crores (2024).
  20. Total Equity: ₹7,835.99 Crores (2025) vs ₹7,075.40 Crores (2024).
  21. Total Liabilities: ₹5,802.49 Crores (2025) vs ₹5,315.93 Crores (2024).
  22. Net worth: ₹7,836 Crores (2025) vs ₹7,075 Crores (2024).
  23. Sales to related parties: ₹1,349.18 Crores (2025).
  24. Purchases from related parties: ₹3,178.55 Crores (2025).
  25. No materially significant related party transactions with conflict of interest.
  26. Both standalone and consolidated financial statements are provided.

Corporate Overview

  1. Head office in Peenya, Bengaluru, Karnataka, India.
  2. Manufacturing facilities in Bengaluru (Karnataka), Faridabad (Haryana), Nashik (Maharashtra), and Vadodara (Gujarat).
  3. Global reach with operations in over 100 countries across Europe, Americas, and Asia, Middle East, and Africa (AMEA).
  4. Exports to 30+ countries.
  5. Cyclical breathing space on margins in 2025.
  6. Headwinds from commodity inflation and forex movements.
  7. Challenges adapting to new quality control orders and labor codes.
  8. Geopolitical tensions and trade fragmentation.
  9. Dependent on global supply chain and geopolitical stability.
  10. Exposed to commodity price volatility and forex movements.
  11. Impacted by trade sanctions, tariffs, and import/export restrictions.
  12. Global technology leader in electrification and automation.
  13. Enables a more sustainable and resource-efficient future.
  14. Operates with a decentralized business model.
  15. Focuses on electrification, motion, automation, robotics and discrete automation.
  16. Bullish, highlighting record orders and revenues.
  17. Confident in sustained long-term performance and strong cash position.
  18. Emphasizes technology leadership and 'Engineered to Outrun' ambition.
  19. Serves a broad customer base including end users, Original Equipment Manufacturers (OEMs), Engineering, Procurement and Construction (EPC) contractors, channel partners, distributors, and retailers.
  20. Electrification (43% of turnover)
  21. Motion (34% of turnover)
  22. Automation (18% of turnover)
  23. Robotics and Discrete Automation (less than 10% of turnover)
  24. Serves 23 diverse market segments including data centers, transport, infrastructure, renewables, EV manufacturing, semiconductors, electronics, process industries, marine, ports, metals, cement, textile, automotive, oil & gas, food & beverage, smart buildings, rail & metro, airports, water & wastewater.
  25. 5 manufacturing locations and 25 plants in India.
  26. 28 sales offices and 750+ channel partners.
  27. Local capacity for variable-speed drives increased by ~25%.
  28. Commissioned new automated line for variable-speed drives.
  29. Investment of over ₹140 Crores for IE5 ultra-premium efficiency motors.
  30. Inaugurated new distribution center in Alur, Bengaluru.
  31. Commissioned two new Industry 5.0 automation production lines at Nelamangala.
  32. Capital commitments for future projects total ₹282.02 Crores for 2025.

Risk Factors

  1. Commodity inflation and forex volatility persist.
  2. Intense competition and market dynamics.
  3. Talent attraction and retention challenges.
  4. Compliance with evolving labor codes.

Key Drivers

  1. Highest-ever orders and revenues achieved.
  2. Strong order backlog ensures future visibility.
  3. Focus on electrification, automation, AI, digitalization.
  4. Expansion into high-growth emerging sectors.

Auditor’s Report

  1. Unmodified opinion for both standalone and consolidated financial statements.
  2. Revenue from fixed price contracts using percentage of completion method.
  3. Recoverability of trade receivables.

Board Commentary

  1. Adrian Guggisberg re-appointed as Director.
  2. Monica Widhani's tenure as Independent Director ended.
  3. Amrita Gangotra appointed as Independent Director.
  4. Raman Kumar Singh resigned as Country HR Head, Vaibhav Srivastava appointed.
  5. Board recommended final dividend of ₹29.59 per share for 2025.
  6. Total dividend for 2025 is ₹39.36 per equity share.
  7. Dividend payout determined by Company's dividend distribution policy.
  8. Procurement and supply chain disruptions.
  9. Market dynamics and competitive pressures.
  10. People-related risks including attrition and labor codes.
  11. Product and service non-compliance with regulations.
  12. Geopolitical instability affecting operations.
  13. Four sexual harassment complaints received and addressed in 2025, one case extended beyond 90 days.
  14. No significant legal/regulatory issues or penalties reported.
  15. No instances of fraud reported by auditors.
  16. Company in compliance with Secretarial Standards and Maternity Benefit Act.
  17. Estimated capital commitments of ₹282.02 Crores for 2025.
  18. Approved slump sale of Robotics Business to ABB Robotics India Private Limited.

Corporate Governance

  1. Follows ABB Code of Conduct and Whistle Blower Policy.
  2. Has Equal Employment Opportunity and Human Rights Policies.
  3. 50% of Board members are Independent Directors.
  4. Independent Directors meet criteria of independence.
  5. Includes Audit, Nomination and Remuneration, Stakeholders Relationship, Corporate Social Responsibility, and Risk Management Committees.
  6. One sexual harassment case extended beyond 90 days in 2025.

Management Discussion & Analysis

Future Strategy

  1. Stay centered on megatrends: electrification, automation, AI-enabled digitalization.
  2. Leverage Group innovations and local engineering for density and efficiency.
  3. Deepen grid and industrial efficiency with advanced drives and digital services.
  4. Selective capacity and localization to de-risk supply and shorten lead times.
  5. Accelerate future-skills development in power electronics, controls, AI-adjacent software.

Industry Overview

  1. Electrification and automation demand is structurally rising.
  2. AI is reshaping industries, creating new opportunities.
  3. Strong growth drivers in data centers, buildings, and rail sectors.
  4. Emerging sectors like semiconductors, green hydrogen, and battery storage.

Macroeconomic Outlook

  1. Global growth at ~3.3% in 2025, driven by resilient domestic demand.
  2. Continued investment in digital and AI infrastructure.
  3. India's economy estimated to grow by 7.6% in FY 2026.
  4. India surpassed Japan to become world's fourth-largest economy.

Operational Focus Areas

  1. Strengthening resilience amid global supply chain and geopolitical shifts.
  2. Emphasizing local-for-local design, accountability, transparency, and speed.
  3. Dual-sourcing critical components and increasing localization.
  4. Expanding supplier development and ESG onboarding.

Performance Drivers

  1. Highest-ever orders and revenues in 2025.
  2. Strong order backlog of ₹10,471 Crores, up 12% YoY.
  3. Profit Before Tax (PBT) at ₹2,230 Crores, Profit After Tax (PAT) at ₹1,669 Crores.
  4. Return on Capital Employed (ROCE) at 21%.

Risk Control Measures

  1. Local-for-local design reduces cross-border dependency.
  2. Strategic forward contracts hedge against forex and commodity volatility.
  3. Supplier diversification for complex and high-scale projects.
  4. Structured learning programs address talent capability gaps.
  5. Proactive compliance monitoring for labor codes and product quality.

Critical Risks

  1. Commodity inflation and forex volatility impacting profitability.
  2. Heightened competitive pressure from new market entrants.
  3. Difficulty attracting and retaining skilled talent.
  4. Risk of non-compliance with evolving product regulations.
  5. Geopolitical instability, trade sanctions, and tariffs.