Despite margin pressures, an analyst suggests a possible rebound from technical support levels.
ABB shares fell 6% on Monday after the company reported a 21% fall in net profits to ₹351 crore for its June quarter (Q1 FY26). Margin pressure and profit decline weighed on investor sentiment despite healthy revenue growth.
ABB stock has fallen 8% in the last 2 days. Data on Stocktwits indicates that retail sentiment has remained ‘bearish’ on this counter for a week.
Q1 Earnings Review
Revenues rose 12% to ₹3,175 crore, while EBITDA fell 24% to ₹413 crore. Margins too declined sharply to 13.03% from 19.15% last year.
Additionally, the company indicated structural weakness in its order inflows. The management acknowledged a cyclical slowdown in orders post a strong growth period. They expect demand to recover as inflation eases and sectoral activity picks up.
SEBI-registered analyst Yogesh Nirwan noted that short-term moderation in private capex is likely, but structural demand remains strong.
Technical Outlook
Analyst Vatsal Khemka noted that ABB is trading near a crucial pivot zone around ₹5,034. He advised that traders may consider fresh positions with a stop-loss at ₹5,018, targeting a quick upside of nearly 10%.
According to him, investors can take a 1–2 month view with a potential target of ₹6,000 and higher.
ABB shares have declined 27% year-to-date (YTD).
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