ABB India (ABB IN) – Q4FY26 Result Update – Soft Q1 amid elevated input cost weighs on margins – Downgrade to ‘HOLD’
Published on 09 May 2026
Despite ABB is likely to face headwinds from higher input cost and forex volatility amid West Aisa crisis in the near term. However, we remain positive on ABB in the long run given: 1) rising demand for energy-efficient and premium-quality products, 2) its resilient business model, 3) focused growth in high-potential segments such as data centers, rail & metro, renewables, and electronics, and 4) a strong domestic order pipeline. The stock currently trades at P/E of 77.9x/65.3x on CY26/27E. We roll forward to Jun’28E and downgrade our rating to ‘Hold’ from ‘Accumulate’ given rally in the stock price while valuing the stock at a P/E of 56x Jun’28E (56x Mar’28E earlier) arriving at TP of INR6,523 (INR6,319 earlier).
