ABB India (ABB IN) – Event Update – Robotics divestment to be value accretive – Accumulate
Published on 27 Jan 2026
ABB IN has announced its intention to divest its Robotics business, in line with the global parent’s divestment of ABB Robotics Schweiz AG (“ARSAG”) to SoftBank Group. As part of the divestment, ABB IN incorporated ABB Robotics India Private Limited (“INRBT”) as a wholly owned subsidiary and proposes to transfer its Robotics business to INRBT on a slump-sale basis for a consideration of Rs15.7bn. ABB IN then will sell its entire stake in INRBT to ARSAG. The transaction is expected to be completed by 27 February 2026. In our view, the deal is value-accretive for ABB IN, implied at ~2.2x EV/TTM sales and ~24.4x EV/TTM EBIT (inc. other income). The divestment is likely to sharpen the company’s focus on its core portfolio and support at least 10-15bps improvement in EBIT margins in CY26E and CY27E. Additionally, the exit should marginally enhance return ratios, driven by the elimination of negative net capital employed in the Robotics business. The stock is currently trading at a PE of 53.3x/45.9x on CY26/27E. We have a ‘Accumulate’ rating on the stock valuing it at a multiple of 56x Sep’27E (same as earlier) arriving at a TP of Rs5,540 (same as earlier).
