ABB India Limited reported a robust performance for the second quarter of calendar year 2026 (Q2CY26), with orders surging 50% year-on-year to approximately ₹8,600 crore for the half-year period. Revenue from operations grew 21% in the quarter, supported by a strong order backlog of ₹11,900 crore. The company declared an interim dividend of ₹90 per share, reflecting its strong cash position of ₹7,200 crore. This growth underscores the accelerating demand in key sectors such as data centers, renewables, and infrastructure, positioning the firm favorably despite macroeconomic headwinds.

The earnings call, held on July 31, 2026, was led by Country Managing Director Sanjeev Sharma and Chief Financial Officer T.K. Sridhar. Management highlighted that the transition to T.K. Sridhar as Managing Director Designate, effective January 1, 2027, is underway, with a new CFO expected to be appointed soon. The company also noted a strategic expansion in manufacturing capacity, adding a second location in Nelamangala, bringing the total manufacturing sites to six. This expansion aims to support the growing demand, particularly in the electrification segment, which saw a 77% year-on-year increase in orders.

Financial Performance Highlights

ABB India’s financial results for Q2CY26 demonstrate significant growth across key metrics. The company maintained operational EBITA at 12.8%, while profit after tax (PAT) increased by 8%. The earnings per share (EPS) for the half-year stood at ₹33.61. Despite a 1 percentage point compression in EBITDA margin from 13.6% in the previous quarter to 12.6%, the company leveraged scale benefits to offset rising material costs.

Segment-Wise Analysis

The Electrification segment emerged as the strongest growth driver, with orders up 77% year-on-year, fueled by demand from data centers, metals and mining, and infrastructure sectors. The Motion segment recorded stable growth, with revenues slightly lower due to long-gestation railway orders, though profitability remained strong at 12%. The Automation segment saw a 24% growth in orders, although revenue grew by only 7% due to cyclical nature and mix challenges. Management noted that 30% of Automation revenue came from services, helping maintain margin corridors.

What the Numbers Show

A critical observation from the filing is the divergence between ABB India’s reported order growth of 50% and the global group’s reported 82% growth. Management clarified that this discrepancy arises because Indian customers placed orders directly with ABB Group companies outside India for systems not locally available or for convenience. This includes marine and ports systems where global entities hold the primary competency. While this indicates strong overall demand for the brand in India, it highlights a structural gap in local system execution capabilities for certain high-value projects, which may limit immediate revenue recognition for the listed entity compared to the broader group.

Outlook and Challenges

Management acknowledged headwinds from elevated commodity prices, particularly copper, and forex volatility, which impacted material costs. Material cost as a percentage of revenue rose to 63% from 61% in the previous quarter. However, the company has implemented two price hikes to mitigate these impacts, with acceptance improving as customers recognize the value proposition. Looking ahead, megatrends such as electrification, automation, and grid modernization are expected to drive growth. The company anticipates that government capex and private consumption will support demand, though geopolitical uncertainties and supply chain dynamics remain factors to monitor. The strong backlog of ₹11,900 crore provides visibility for future revenue conversion, with 40% expected to be consumed in the next two quarters.

abb has formed a strategic partnership and made a minority investment in LevelTen Energy, the world’s largest marketplace for clean energy transactions, to strengthen its ability to support industrial and commercial customers in securing affordable, long-term clean energy. Announced on Aug. 6, 2026, from Zurich, the collaboration combines ABB’s expertise in electrification, digital solutions, and energy management with LevelTen’s market-leading platform for power purchase agreements (PPAs). This move addresses the growing complexity businesses face in decarbonizing operations while managing energy costs and maintaining reliable 24/7 operations.

The partnership enhances ABB’s energy and carbon (E&C) advisory services by expanding its end-to-end solutions to span energy procurement, electrification, optimization, and emissions reduction. Financial details of the investment were not disclosed. Stuart Thompson, President of Electrification Service division at ABB, stated that the partnership fills a gap in their current offerings by providing a straightforward way to secure long-term clean energy at the right price. This allows ABB to extend its advisory services from planning and implementation to ongoing optimization and reporting.

LevelTen Energy, headquartered in the United States, has facilitated more than 20 GW of clean energy transactions in more than 35 markets across North America and Europe. Its clients include hyperscalers, commercial and industrial companies, and utilities. The collaboration is particularly relevant as regulatory requirements evolve, with businesses moving beyond annual renewable energy matching toward stricter expectations regarding when and where clean energy is generated and consumed.

Strategic Benefits and Market Expansion

The deal creates mutual growth opportunities for both entities. ABB will gain access to LevelTen’s extensive ecosystem of clean energy developers and projects, creating new opportunities to deliver monitoring, optimization, and lifecycle services. Conversely, LevelTen will benefit from ABB’s domain expertise and global customer relationships, particularly within manufacturing, industrial, and commercial sectors, as well as ABB’s strong presence in growth markets including Asia-Pacific.

Bryce Smith, CEO of LevelTen Energy, said the partnership will generate new clean energy solutions, allowing ABB’s global customers to seamlessly tap into clean power, capacity, and portfolio management tools. He noted that together, they have a real opportunity to help even more customers decarbonize.

Investment Context

This investment was made through ABB Electrification Ventures, the venture capital arm of ABB’s Electrification business area. It reflects the company’s commitment to building an ecosystem of innovative partners developing solutions that support productivity, efficiency, and sustainability. With this latest partnership, ABB Electrification Ventures has invested more than $110 million in 18 startups since 2021. This follows recent investments such as Gridcog, further expanding ABB’s capabilities across energy procurement, advisory, and energy and carbon services.

What the Numbers Show

The scale of LevelTen’s existing transaction volume highlights the immediate value of this partnership for ABB’s advisory business. With over 20 GW of facilitated clean energy transactions across 35 markets, LevelTen provides significant leverage for ABB to enter the PPA space without building infrastructure from scratch. The undisclosed financial terms suggest a strategic rather than purely financial motive, focusing on capability integration rather than asset acquisition.