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ABB India shares will be in focus on Monday, 16 November, after the electrification and automation major reported its September quarter results and received a rating upgrade from Motilal Oswal Financial Services. The brokerage has upgraded the stock to 'Buy' from 'Neutral', citing improving order inflows, revenue growth prospects and a recovery in margins. It has also raised its target price to ₹8,200 from its earlier estimate, implying an upside potential of around 16% from Friday's closing price.
The positive brokerage outlook comes even as the stock has witnessed some volatility in recent months. ABB India's Q3 CY26 performance, marked by record quarterly orders and a robust order backlog, has strengthened expectations of improved execution and earnings growth over the coming quarters.
ABB India reported an 11% year-on-year increase in net profit to ₹440 crore for the September quarter, compared with ₹398 crore in the corresponding period last year.
Revenue from operations rose 19.4% to ₹3,738 crore from ₹3,130 crore a year earlier, supported by stronger business activity and demand across key industrial segments.
The company recorded total order inflows of ₹4,733 crore in Q3 CY26, registering a sharp 56% year-on-year increase and marking its highest-ever quarterly order intake. Its order backlog stood at ₹12,927 crore at the end of September, up 36% from the year-ago period, providing revenue visibility for the coming quarters.
Electrification was the key growth driver, with orders increasing across segments. The Motion business also witnessed growth in select areas, particularly railways and services, while Automation reported higher export orders despite relatively muted performance.
Data centres, utilities, metals and mining, food and beverage, cement, and buildings and infrastructure emerged as key demand drivers during the quarter.
ABB India Managing Director Sanjeev Sharma said the company delivered a strong third quarter, supported by record order intake, revenue growth and a healthy backlog, reflecting continued customer confidence in its technology and solutions.
He added that demand remained broad-based across industries, driven by investments in productivity, energy efficiency and sustainable growth. Sharma also highlighted India's structural growth drivers, including industrialisation, electrification, digitalisation and the energy transition, as key opportunities for the company's future growth.
Motilal Oswal Financial Services has upgraded ABB India to 'Buy' from 'Neutral' and set a revised target price of ₹8,200, implying an upside potential of around 16% from Friday's closing price of ₹7,045.
The brokerage said the company's Q3 CY26 results were largely in line with estimates, while continued improvement in order inflows and a recovery in margins strengthened its confidence in the revenue growth and profitability outlook.
ABB India's order inflows rose 56% year-on-year to ₹4,733 crore, taking its order backlog to ₹12,927 crore, up 36% from the year-ago period. Motilal Oswal noted that demand was particularly strong across data centres, utilities, metals and mining, food and beverage, cement, and buildings and infrastructure.
The brokerage expects price hikes implemented over the past few quarters to support revenue growth and improve margins, with the benefits already beginning to reflect across business segments.
It has raised its CY27 and CY28 estimates by 6% and 7%, respectively, and expects revenue, EBITDA and profit after tax to grow at CAGRs of 23%, 32% and 31%, respectively, over CY26–CY28. It projects EBITDA margins to improve to 13.9%, 15.2% and 16.2% over the same period.
Motilal Oswal said its upgrade is driven by three key factors: sustained healthy order inflows, improving revenue growth and signs that margins bottomed out in the previous quarter. It values ABB India at 60 times December 2028 estimated earnings to arrive at its revised target price of ₹8,200.
The brokerage remains positive on the Electrification business, which has recorded strong order inflows over the past three quarters. For the nine months of CY26, Electrification order inflows rose 72% year-on-year, while revenue increased 29%.
In the Motion segment, excluding Robotics, order inflows grew 21% year-on-year during the nine-month period. Motilal Oswal expects revenue growth in the segment to recover to 16–18%, supported by improving private capital expenditure, demand from railways and services, and better pricing.
However, the brokerage believes the Industrial Automation business may take longer to recover, as both order inflows and revenue growth remain muted.
ABB India shares closed 1.37% higher at ₹7,045 on the BSE on Friday, 13 November, ahead of the weekend's Q3 CY26 earnings announcement. The stock has gained 36.12% so far in 2026 and is up 11.77% over the past six months. It has also advanced 10.03% over the last two weeks and 4% in the past week. However, the stock has remained under pressure over the medium term, declining 8.27% over three months, while its one-month return stands at a modest 1.07%.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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