Accumulate ABB India; target of Rs 6319: Prabhudas Lilladher
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Prabhudas Lilladher recommended accumulate rating on ABB India with a target price of Rs 6319 in its research report dated February 23, 2026.
Prabhudas Lilladher’s research report on ABB India
We revised our EPS estimates for CY26/CY27E by 5.6%/6.2% factoring in strong order inflow that improve the revenue visibility across segments. ABB India (ABB) reported 5.7% YoY revenue growth in Q4CY25, while adj EBITDA (ex. Forex) margin contracted by 521bps YoY due to commodity inflation and QCO-related material impact. The management has guided for double-digit revenue growth supported by healthy base order conversion with PAT margin of 12-15% in CY26, despite near-term pressure from elevated imported material cost. Large project order bookings remained lumpy due to deferred customer decisions, though the management highlighted a strong pipeline across power generation & transmission, energy industries and data centers, with pick-up expected as private capex revives. Electrification and Motion continue to anchor order intake, aided by smart power, distribution solutions, propulsion systems for railways, drives and large motors. Process Automation saw order momentum improving led by energy and processing industries, though revenue growth remains modest. Data centers (~11% of order backlog) remain a structural growth driver, with ABB’s end-to-end electrical and automation capabilities positioning the segment to support growth in CY26 and beyond.
The stock currently trades at a P/E of 63.5x/54.4x on CY26/27E. We roll forward to Mar’28E and maintain our ‘Accumulate’ rating valuing the stock at a P/E of 56x Mar’28E (56x Sep’27E) arriving at TP of Rs6,319 (Rs5,540 earlier).
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