Are ABB India Ltd latest results good or bad?

ABB India Ltd's latest financial results for Q3 FY26 present a mixed picture. The company achieved record net sales of ₹3,557.01 crores, reflecting a year-on-year growth of 22.14% and a sequential increase of 7.44%. This strong revenue performance highlights robust order execution across its electrification, motion, and process automation divisions. However, the profitability metrics indicate a more concerning trend, as the operating margin (excluding other income) contracted significantly to 15.63%, down 413 basis points from the previous year, suggesting that rising costs and competitive pressures are impacting profitability. Net profit for the quarter was reported at ₹432.85 crores, which represents a slight decline of 1.73% year-on-year, although it saw a sequential increase of 5.82%. This divergence between strong revenue growth and declining profitability raises questions about the sustainability of margins in the current market environment. The profit after tax (PAT) margin also saw a decrease to 12.42%, down from 15.99% in the same quarter last year. The company's operational efficiency remains notable, with a return on equity (ROE) of 24.55%, indicating effective capital deployment despite the margin pressures. However, the increase in employee costs and the decline in other income further constrained overall profitability. Overall, ABB India Ltd's results reflect strong revenue growth but highlight significant challenges in maintaining profitability amidst rising costs and competitive dynamics. The company saw an adjustment in its evaluation, reflecting these mixed operational trends. Investors may need to monitor future performance closely, particularly regarding margin stabilization and cost management strategies.