ABB India Posts 50% Order Growth in Q2, Announces CFO Transition and INR 90 Dividend
The industrial equipment maker reported strong order intake driven by renewables and data centers, while announcing T.K. Sridhar's elevation to Managing Director.
Strong Order Momentum Despite Margin Pressures
ABB India Limited reported robust order growth of 50% year-over-year in the second quarter of 2026, reaching INR 8,600 crores for the half-year period, according to its earnings call on July 31. Revenue grew 21% in the quarter, backed by a "strong backlog" of INR 11,900 crores with "no stale moving or non-moving order," CFO T.K. Sridhar told investors (earnings call, 2026-07-31).
The company declared an interim dividend of INR 90 per share, which Sridhar explained "includes the proceeds which would go from the divestment of robotics plus and a 50 percentage payout ratio of what we do from the normal earnings" (earnings call, 2026-07-31). According to MarginX data, the dividend will be paid on August 7, 2026.
Leadership Transition Underway
In a notable development, ABB India announced that Sridhar has been designated as Managing Director effective January 1, 2027. Managing Director Sanjeev Sharma explained the transition plan: "In the month of May, [we] accorded him the status as the MD Managing Director Designate, starting from 1st of January 2027" (earnings call, 2026-07-31). The company is currently searching for a new CFO, with Sharma noting "we should be complete in the next couple of months" (earnings call, 2026-07-31).
Segment Performance Varies
The electrification segment led growth with orders up 77% year-over-year, driven by data centers, metals and mining, and transport sectors. Revenue in this segment grew 31%, though profitability stood at 15%, impacted by "material cost impact" and "product volatility" (earnings call, 2026-07-31).
The motion segment showed stable growth at 26% quarter-over-quarter on orders, with profitability at 12% despite commodity price increases. The segment maintained a backlog of INR 4,900 crores.
Automation experienced headwinds, with a 24% decline in orders due to "a bit of a cyclical nature," though revenue grew 7% (earnings call, 2026-07-31). Management noted that "30 percentage of business" helped maintain margins in this division.
Sustainability Recognition
ABB India highlighted its environmental credentials, reporting an 85% reduction in baseline GHG emissions (Scope 1 and 2) and diverting 99.7% of waste from landfills. The company improved its ESG rating by 300 basis points and was recognized as one of "India's most sustainable company" by a capital group (earnings call, 2026-07-31).
Market Outlook
Management identified growth opportunities across 23 market segments, with particular emphasis on renewables, data centers, and infrastructure. The company noted "levers" for market growth including "green energy, AI and the data protection pushed by the government and the CapEx, which infrastructure spend" (earnings call, 2026-07-31).
For the first half of 2026, operational EBITDA reached INR 1,800 crores with cash reserves of INR 7,200 crores, positioning the company with what management described as a "strong" balance sheet.
This article was generated by MarginX from the earnings call on 2026-07-31. It is not investment advice.