Are A B B latest results good or bad?

The latest financial results for ABB India for the quarter ended September 2025 present a mixed picture. The company reported a significant year-on-year revenue growth of 67.64%, reaching ₹3,310.72 crores, driven by strong demand and effective order execution in the electrification and automation sectors. This robust revenue performance reflects the company's strong positioning amidst favorable government infrastructure spending and industrial capital expenditure recovery.
However, despite this revenue growth, the net profit for the quarter was ₹409.04 crores, which represents a decline of 7.13% compared to the same quarter last year. This indicates challenges in translating top-line growth into bottom-line profitability. The operating margin, excluding other income, contracted to 15.23%, down from 18.70% in the previous year, highlighting rising cost pressures and potential pricing challenges in a competitive market environment.

The company's return on equity remains strong at 24.99%, showcasing effective capital efficiency despite the operational challenges. Additionally, ABB India continues to maintain a solid balance sheet with zero long-term debt and a net cash position, which provides financial flexibility for future growth initiatives.

Overall, while ABB India demonstrated impressive revenue growth, the decline in net profit and operating margin compression raises concerns about its ability to sustain profitability amid rising costs. The company has experienced an adjustment in its evaluation, reflecting these mixed operational trends. Investors should monitor future performance closely, particularly regarding margin recovery and cost management strategies.