ABB eyes data centres and grid upgrades
ABB is counting on India’s push for electrification, a surge in data centre construction, and grid upgrades to keep its growth trajectory on track.
Profit jump and order backlog give ABB a clear runway
The engineering firm reported an 8 percent year‑on‑year rise in profit after tax, reaching ₹370 crore for the June quarter of fiscal year 2026. Management highlighted a record order backlog of roughly ₹12,000 crore, which it says secures revenue visibility through mid‑2028.
Chief Financial Officer TK Sridhar noted that about 45 percent of that backlog is slated for execution within the next two quarters, with the remainder spread over the following six to eight quarters. The bulk of orders stem from data centres, railways, and metals and mining, and no execution delays have been reported so far.
During a post‑results discussion, Managing Director Sanjeev Sharma described electrification, energy efficiency and automation as the core themes for the company. He said India remains a “sweet‑spot market” because these areas are seeing strong structural growth.
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New sectors on the horizon as India upgrades its infrastructure
Sharma identified data centres, commercial buildings, grid modernisation, renewables, battery energy storage systems (BESS), railways and metro projects as the current growth drivers. While ABB has served the data centre market for nearly eight years, the firm now sees marine and ports as “sunrise sectors” as India expands its port infrastructure and domestic shipbuilding capacity.
In addition, ABB is positioning itself to benefit from the country’s semiconductor manufacturing ambitions. Its portfolio—medium‑ and low‑voltage electrification products, drives, automation systems and clean‑room solutions—already aligns with the needs of semiconductor fabs, with capacity built ahead of demand.
Long‑term opportunity lies in the under‑penetrated market for energy‑efficient industrial systems, Sharma said. As renewable power generation climbs, India will need more investment in energy storage integration, demand‑side management and industrial process controls to meet rising electricity consumption.
Roughly 40 percent of the company’s orders are tied to public spending, while the remaining 60 percent depend on private sector capital expenditure. Within the Indian operation, about 45‑50 percent comes from core industries, 15‑20 percent from emerging sectors such as data centres, electronics and renewables, and the rest from infrastructure and mobility projects.
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ABB does not expect a single sector to drive the next leg of growth. Instead, the broader investment cycle across the economy will shape expansion, Sharma added. The firm has been growing at a 16‑17 percent compound annual rate, outpacing India’s GDP growth of around 6‑7 percent.
From a practical standpoint, the focus on data centres and grid upgrades means more reliable power for businesses and households alike, while the push into marine and semiconductor areas could create new jobs in specialized engineering fields.
Growth remains steady.
Sharma also mentioned that ABB continues to evaluate inorganic opportunities alongside capacity expansion to support future growth. The company’s diversified portfolio aims to balance emerging sectors with traditional industries such as metals, mining, cement, oil and gas, and pulp and paper, which still hold a large installed base.
