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ABB India shares gained 4% on Friday, February 20, as analysts weigh the company’s fourth-quarter results, with some seeing potential downside of up to 19%.
The stock ended the previous session 2.8% lower at ₹5,715, despite a 52% jump in quarterly orders and a modest beat on revenue and adjusted EBITDA.
Brokerages remain largely neutral, citing mixed signals from earnings, margins, and order growth across sectors including data centres, railways, and metals.
UBS
UBS has a 'neutral' rating on ABB India with a target price of ₹5,310 per share, a potential downside of 7% from its previous close.
It said the company's fourth quarter orders, revenue and adjusted EBITDA was at 23%, 2% and 12% beat compared to the consensus, respectively, and increased 52%, 6% and 7%, from the previous year, respectively.
The company's adjusted EBITDA margin increased to 17.2%, up 210 basis points sequentially. It was driven by 80 basis point gross margin and 130 basis point operating leverage.
ABB India's orders include large orders in data centres and auto, railways and metals sectors.
Its EP and motion revenue increased 6% and 7%, each, from the previous year.
UBS said the company's growth in base orders run rate is key for re-rating.
Macquarie
The analyst has a 'neutral' rating on ABB India with a target price of ₹5,420 per share, a 5% downside from its previous close.
It said the fourth quarter earnings were in-line. Its revenue increased 6% from the previous year, led by motion (up 7%) and electrification (up 6%), while the adjusted profit after tax (PAT) dropped 9% from the previous year.
It believes the silver lining in results was the new orders of ₹4,096 crore, up a considerable 52% from the previous year and 27% sequentially, given the low base of last year. This takes the total order backlog to ₹10,471 crore, up 12% from the previous year.
Despite the relaxation in quality control norms (QCO) norms in November 2025, the higher import content continued to weigh on the fourth quarter gross margins, Macquarie added.
Nomura
Nomura has a 'reduce' rating on ABB India with a target price of ₹4,620 per share, a 19% downside from its previous close.
It said the fourth quarter order inflows surged 52% to ₹4,100 crore and the adjusted EBITDA beat estimates by 19%.
As per the management, ABB is well-placed to benefit from sustained investments in infrastructure, rail, grid modernisation, and renewables, and capture opportunities in metals, mining, energy, chemicals, data centres and electronics, Nomura said.
Also, the company expects continued capex across chemicals, pharmaceuticals, automotive, power distribution, water, and digitalisation, which augurs well for its growth prospect, the analyst added.
The stock currently trades at 71 times and 63 times its calendar year 2026 and CY27 earnings per share estimates.
Of the 31 analysts who have coverage on the stock, 12 have a 'buy' rating, 13 have a 'hold' rating and six have a 'sell' rating.
ABB India shares were up 4% lower at ₹5,950 apiece just after market open. The stock has gained 26.8% in the past month.
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