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In-line results

* ABB’s results came in line with our estimates across all metrics.

* Revenue grew 14% YoY to INR33.1b. All business segments posted revenue growth during the quarter, led by Robotics and Discrete Automation. Growth in Electrification was evenly balanced, with all divisions contributing.

* EBITDA margin came in ahead of our estimates. However, margins contracted 350bp YoY to 15.1% due to higher material costs and reliance on imports to support delivery commitments in the wake of QCO compliance.

* PBIT margins exceeded our estimates in the Electrification and Process Automation divisions. However, margins declined YoY across segments: Electrification (19.6% in 3QCY25 vs 20.8% in 3QCY24), Robotics & Motion (14.5% in 3QCY25 vs 22.3% in 3QCY24), and Process Automation (17.6% in 3QCY25 19.2% in 3QCY24).

* Overall PAT came slightly ahead of our estimates. However, PAT declined 7% YoY to INR4.1b due to margin contraction over the past year.

* Order inflows declined 3% YoY to INR32.3b, primarily due to the timing of large orders. Base orders remained strong, rising 13% YoY, which lifted the overall order book to INR99b. Motion and Robotics and Discrete Automation led growth in orders. Electrification had a large data center order in the same quarter last year, while Process Automation mirrored the overall order plateau in order inflows for the quarter. Order wins included wind converters for renewables, robotics for EV mobility (automotive) and mobile phone assembly (electronics), process automation and drives solutions for metals, insulated case circuit breakers and fault current limiters for a power distribution equipment company, and electricals and instrumentation for a global leader in food, beverage, and pharma systems.

* For 9MCY25, revenue increased 9% YoY. EBITDA/PAT declined 9%/8% YoY, while EBITDA margin in 9MCY25 contracted 320bp YoY to 15.5%.

* The company’s cash position continues to remain strong at INR49.91b at the end of 3QCY25.

* Outlook: ABB is well-positioned to capitalize on a resilient macroeconomic environment and strong government-led industrial momentum. Easing inflation, GST rationalization, and sustained public capex in infrastructure, railways, and green energy are driving demand recovery, while private and industrial capex remains selective but strong in renewables, data centers, electronics, process industries, oil & gas, food & beverage, and water.

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