Shares of ABB India Ltd plunged nearly 10% in Friday’s trade after the company reported weaker-than-expected Q1CY26 earnings, triggering a wave of brokerage downgrades and target price cuts.
The stock declined as much as 9.5% to around ₹6,325 on the NSE, emerging among the top losers on the benchmark indices. The sharp correction comes after several global and domestic brokerages turned cautious on the stock following margin disappointments and concerns over slowing industrial capex momentum.
Brokerages highlighted that the company’s Q1CY26 operational performance missed expectations despite reporting revenue growth. Analysts flagged pressure on margins due to higher commodity costs, adverse revenue mix and execution delays.
Macquarie downgraded ABB India to “Underperform” from “Neutral” and cut its target price to ₹5,470, citing weaker-than-expected earnings and slower margin recovery. The brokerage noted that despite revenue growth, operating profit and net profit declined sharply due to cost pressures and lower operating leverage.
Jefferies also downgraded the stock to “Underperform” with a target price of ₹5,915, stating that EBIT performance was significantly below estimates. The brokerage said industrial capex growth outside the power transmission and distribution segment may remain subdued, limiting margin recovery prospects.
BofA Securities maintained its “Underperform” rating with a target price of ₹4,764, while Citi reiterated its “Sell” call with a ₹5,200 target price. Analysts across brokerages highlighted commodity inflation, forex volatility, pricing pressures and weaker execution as key concerns weighing on margins.
Domestic brokerages also turned cautious on the stock. Nuvama Institutional Equities downgraded ABB India to “Reduce”, while Motilal Oswal downgraded the stock from “Buy” to “Neutral” following the quarterly performance.
The sharp fall in ABB India shares also comes after a strong rally in recent months. The stock had surged from around ₹4,640 levels in January 2026 to a record high of over ₹7,820 in April before witnessing profit booking following the earnings miss.
Investors appeared concerned that elevated valuations may be difficult to sustain amid moderating earnings momentum and continued pressure on profitability.