ABB India Limited has closed its financial year ended December 31, 2025, on a high note, with the Board of Directors recommending a substantial final dividend of Rs 29.59 per share. This represents a staggering 1,480 per cent payout on the face value of Rs 2 per share. When combined with the previously paid interim dividend of Rs 9.77, the total dividend for CY2025 stands at an impressive Rs 39.36 per share. This rewarding payout reflects the company’s robust cash position, which reached Rs 5,694 crore by the end of the year, providing a strong foundation for both shareholder returns and future growth initiatives.
The dividend announcement comes on the heels of a historic year for the company’s order book. ABB India reported its highest-ever annual orders at Rs 14,115 crore and record revenues of RS 13,203 crore. The fourth quarter was particularly explosive, witnessing a 52 per cent surge in order growth compared to the same period last year. This momentum was fueled by broad-based demand across critical sectors, including data centres, automotive, railways and infrastructure. Key wins during the quarter ranged from low-voltage switchgear for major data centres to propulsion systems for Indian Railways, showcasing ABB’s diverse and essential role in India’s industrial landscape.
Operational efficiency remained a key theme throughout CY2025, even as the company navigated a complex macroeconomic environment. Despite facing headwinds from material-cost inflation, metal price volatility and increased labour costs related to the new Labour Code, ABB India maintained a healthy Profit Before Tax (PBT) margin of 16.9 per cent for the full year. The company’s focus on commodity hedging and efficiency gains helped offset these pressures, resulting in a Profit After Tax (PAT) of Rs 1,669 crore for the year. This financial resilience is further highlighted by a strong Return on Capital Employed (ROCE) of 21 per cent, signalling highly effective management of the company's capital.
All business segments contributed to the positive revenue trajectory, with electrification and motion divisions seeing particularly strong export demand. In the Electrification area, distribution solutions and smart power divisions led the charge, while the Motion segment benefited from high demand across most divisions. Although the Automation segment saw some variation—with growth in energy industries being balanced by a slight reduction in process industries—the overall synergy across ABB’s portfolio ensured a 6 per cent revenue growth in the final quarter alone. This diversified revenue stream acts as a buffer against sector-specific slowdowns.
Beyond the balance sheet, ABB India made significant strides in its ESG (Environmental, Social and Governance) commitments. By the end of 2025, the company’s sustainability initiatives successfully covered 51 per cent of its suppliers. Notably, the Nelamangala facility achieved a first-of-its-kind certification for water stewardship, underlining the company's commitment to resource efficiency. As a global leader in electrification and automation, ABB continues to leverage its 140-year history to help Indian industries "outrun" by becoming more productive and sustainable through advanced engineering and digitalisation.
Looking ahead, ABB India enters 2026 with a formidable order backlog of Rs 10,471 crore, a 12 per cent increase year-on-year. This backlog provides excellent revenue visibility and aligns perfectly with the company’s expansion plans. With a workforce of approximately 110,000 employees worldwide and a deeply rooted presence in India, the company is well-positioned to capitalise on the country’s ongoing infrastructure push and the industrial shift toward automation. Subject to shareholder approval at the upcoming Annual General Meeting, the 1,480 per cent dividend serves as a clear signal of management's confidence in ABB India’s long-term value creation.
On Friday, shares of ABB India Ltd jumped 8.8 per cent to Rs 6,219 per share from its previous closing of Rs 5,715.65 per share. The stock’s 52-week high is Rs 6,299.80 per share and its 52-week low is Rs 4,590.05. The stock is up by 98 per cent in 3 years and has given multibagger returns of over 300 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.
Order Book at 5-Year High: ABB India Recommends Mega 1,480% Dividend for CY25