ABB India shares slipped nearly 4% from the day’s high after management commentary and the company’s presentation indicated that EBITDA margins were significantly supported by forex and commodity hedge gains.

During the concall, management flagged expectations of a sharp correction, noting that actual EBITDA margins were lower on an underlying basis and were aided mainly by foreign exchange gains. Around 180–200 basis points of margin expansion was attributed to one-off benefits.

The company’s investor presentation further showed that nearly 1.7% of EBITDA margin gains came from forex and commodity hedge impacts. Adjusting for these gains, EBITDA margin stands at around 15.5%, and not the headline 17% level.

This clarification on adjusted margins triggered profit-booking, as investors reacted to concerns over margin sustainability once forex tailwinds fade, leading to the sharp pullback from intraday highs.