Earnings downgrade

ABB India reported subdued performance in Q1FY26, dragged by an adverse revenue mix and decline in price realisation, besides a slowdown in order inflows.

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The electrical capital goods maker's net profit was down 20.5 per cent Y-o-Y to ₹351.70 crore in Q1, from ₹442.60 crore in Q1FY25 and ₹474.10 crore in Q4FY25.

Ebitda margin was down by nearly 600 bps Y-o-Y to 16.33 per cent of revenues in Q1, from 22.44 per cent in Q1FY25 and 21.5 per cent in Q4FY25.

Analysts have cut their forward EPS estimates for FY26 and FY27 anticipating slower-than-expected growth in government and private capex.

The company's FY26E (E stands for estimates) EPS has been cut by 9 per cent to ₹86 while FY27 EPS forecast has been cut by 8.8 per cent to ₹98.

Elara Capital has set ABB stock's target price at ₹5,330. ABB's current stock price is ₹5,022.

Pharmaceuticals major Biocon reported lower-than-expected revenues and earnings in Q1, weighed down by a sharp reduction in generics sales and increased expenses related to new facilities.

Biocon's net sales were up 15.8 per cent Y-o-Y to ₹3,910 crore in Q1FY26, from ₹3,376 crore in Q1FY25 and ₹4,358 crore in Q4FY25.