ABB India Shares Crash Over 7% Despite Strong Order Growth; Why Are Brokerages Turning Cautious?

ABB India shares fell over 7% in early trade Monday even as the company reported strong revenue growth and healthy order inflows for the March quarter.

The stock was trading at ₹6,501, down ₹511.50, or 7.29%, around 9:27 am, among the top losers in the industrials and capital goods space.

ABB India opened sharply lower at ₹6,662 against the last close of ₹7,012.50 on the weak market sentiment and profit booking in engineering counters. During the session, the stock hit an intraday high of Rs 6,687 and an intraday low of Rs 6,325. The stock was under selling pressure as it traded below its VWAP of Rs 6,433.61.

Why is the share price of ABB India falling?

The sharp fall came despite steady operational growth at the company with investors appearing concerned about margin pressure, weaker profitability and cautious broker commentary.

ABB India said its revenue from operations for the quarter ended March 2026 was up 6 per cent YoY to ₹3,185 crore as against ₹3,011 crore for the corresponding quarter of the previous year.

Total order inflow during the quarter grew over 25% y-o-y to ₹4,280 crore, and executable order backlog increased 17% to ₹11,094 crore, reflecting continued demand momentum across segments.

However, investor sentiment took a hit as net profit declined 25% YoY to ₹342 crore from ₹457 crore in the year-ago period.

The company cited adverse revenue mix, execution of lower-margin orders, higher input costs and forex volatility as pressure on profitability. Slower project execution during the quarter also hit margins.

ABB India also said limited export disruptions and increased logistics complexity due to geopolitical tensions in West Asia have resulted in higher supply-chain costs and longer delivery timelines.

The profit before tax for the quarter stood at ₹462 crore.

Brokers Cautious On ABB India

Broker sentiment on ABB India has also turned more cautious after the latest earnings update.

Market data show more analysts who cover the company are recommending that investors “sell” the stock than “buy” it.

Global broker Macquarie downgraded ABB India to “Underperform” from “Neutral” with a target price of ₹5,470, citing concerns around valuations and earnings visibility.

Industrial Stocks Hit By Weak Market Sentiment

ABB India’s sharp correction also comes amid broader weakness in the market, with industrial, engineering and capital goods counters witnessing profit booking after a strong rally in recent months.

Higher crude oil prices, geopolitical uncertainty and concerns on input costs are keeping investors cautious across rate-sensitive and manufacturing-linked sectors.

Analysts are watching ABB India’s strong order book, electrification demand and long-term automation opportunities closely despite near-term margin pressure.

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(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)