In the first quarter of calendar year 2026 (Q1CY26), ABB reported strong order inflows of ₹4,280 crore, marking a 25% year-on-year increase. However, the company's operational performance disappointed, with revenue reaching ₹3,180 crore, which fell short of estimates due to geopolitical tensions, particularly the Iran war. Despite a 6% rise in revenue, profits plummeted by 27% to ₹410 crore, leading to concerns about margin recovery. The gross margin contracted by 370 basis points to 38.7% as high raw material costs, forex volatility, and a slower execution rate affected profitability. The company has completed the divestment of its robotics division and is focusing on significant government investments and private capital expenditures to drive future growth. Analysts predict that margins will remain under pressure for the next two to three quarters, prompting a revision of earnings estimates. ABB's strong cash position, bolstered by the sale of its robotics business, stands at ₹7,600 crore, providing a buffer against current challenges. The company is also investing in local manufacturing capabilities with a $75 million capital expenditure plan to enhance its product pipeline.