ABB India reports fourth consecutive profit decline amid rising costs

Friday 08 May 2026 - 14:30

ABB India reported a fourth consecutive quarterly decline in profit as rising raw material prices, foreign exchange volatility, and higher operational expenses continued to pressure the company’s margins.

The engineering and technology firm announced that profit from continuing operations fell significantly during the January-to-March quarter compared with the same period last year. Despite weaker profitability, the company recorded moderate revenue growth supported by strong demand in its electrification division, which remains its largest business segment.

Company officials stated that higher input costs played a major role in the decline in earnings. Expenses linked to raw materials increased sharply during the quarter, contributing to broader growth in total operating costs.

ABB India also noted that lower-margin contracts and slower project execution affected financial performance. In addition, currency market fluctuations created further pressure on profitability as the company managed international operations and imported industrial components.

Despite the challenges, the company reported a strong increase in total orders, suggesting that industrial demand in sectors such as infrastructure, manufacturing, and energy remains relatively stable. Analysts believe this could support future recovery if market conditions improve.

The company added that geopolitical tensions in parts of West Asia caused limited disruptions to exports and logistics operations. However, transportation expenses increased and supply chain timelines were delayed because of instability in international trade routes.

ABB Group, headquartered in Switzerland, is one of the world’s leading engineering and automation companies, providing technologies for electrification, robotics, industrial automation, and digital industries.

Market observers have pointed to weakness in the industrial automation sector as one of the company’s short-term concerns. Rising production costs and global economic uncertainty continue to affect engineering firms operating in highly competitive international markets.

Even so, India’s long-term industrial growth and infrastructure development are expected to create new opportunities for companies specializing in electrification and advanced automation technologies.