Prabhudas Lilladher Recommends 'Accumulate' on ABB India; Target Rs 5540

• Prabhudas Lilladher maintains an 'Accumulate' rating for ABB India with a target price of Rs 5540.
• ABB India plans to divest its Robotics business by transferring it to a new subsidiary, ABB Robotics India Private Limited (INRBT), for Rs 15.7 billion.
• The entire stake in INRBT will then be sold to ABB Robotics Schweiz AG (ARSAG), a SoftBank Group entity, with completion expected by February 27, 2026.
• The divestment is considered value-accretive, implying ~2.2x EV/TTM sales and ~24.4x EV/TTM EBIT for the Robotics business.
• This strategic move is expected to sharpen ABB India's focus on its core portfolio, improve EBIT margins by 10-15bps in CY26E/CY27E, and enhance return ratios.

Why It Matters: ABB India's Robotics business divestment is a strategic, value-accretive move expected to boost focus and margins.