Honeywell Automation Q1FY26 PAT Drops 8.7% YoY; Revenue Grows 23.2% on Improved Operational Activity

Mumbai, 1 August 2025: Honeywell Automation India Ltd (NSE: HONAUT, BSE: 517174) posted its financial results for the quarter ended 30 June 2025 (Q1FY26), reporting a Profit After Tax (PAT) of ₹1,246 million, an 8.7% year-on-year decline from ₹1,365 million in Q1FY25. Despite the decline in profit, the company’s revenue from operations showed significant improvement, rising 23.2% to ₹11,831 million from ₹9,604 million in the year-ago quarter.

Revenue Jumps to ₹11,831 Million in Q1FY26, But PAT Falls by ₹119 Million Due to Cost Escalations

Honeywell Automation’s total income for Q1FY26 rose to ₹12,249 million, a 21.9% increase compared to ₹10,047 million in Q1FY25. However, the increase in costs across material consumption and employee expenses impacted profitability. The company reported a Profit Before Tax (PBT) of ₹1,680 million, down from ₹1,841 million last year. The PAT stood at ₹1,246 million, reflecting an 8.7% YoY decline, while the Earnings Per Share (EPS) reduced to ₹140.95 from ₹154.34 in the same period last year.

Material Costs Surge to ₹6,663 Million While Total Expenses Grow 28.7% YoY, Pressuring Margins

The company’s total expenditure in Q1FY26 reached ₹10,569 million, compared to ₹8,206 million in Q1FY25. Notable increases were recorded in:

• Cost of materials consumed: ₹6,663 million (up from ₹4,401 million)
• Employee benefits expense: ₹2,169 million (vs ₹1,841 million)
• Purchases of stock-in-trade: ₹1,124 million (vs ₹847 million)
• Finance costs: ₹19 million (up from ₹12 million)

Inventory adjustments reflected a reversal with ₹380 million deduction this quarter compared to an addition of ₹98 million in Q1FY25. Other expenses slightly decreased to ₹840 million from ₹875 million.

No Segment Diversification or Subsidiaries; Board Clears Results with No Audit Modifications

The Board of Directors reviewed and approved the quarterly results on 1 August 2025. Honeywell Automation continues to operate as a single-segment company under “Automation & Control Systems,” as per Ind AS 108 guidelines. The company has no subsidiaries or associate firms. The statutory auditors, Walker Chandiok & Co LLP, issued an unmodified limited review report, indicating no qualifications in the financial statements.

Honeywell Automation Key Metrics Reflect Mixed Performance Across Profitability and Growth Indicators

Honeywell’s recent performance highlights moderate growth but limited profitability acceleration:

The market capitalisation stands at ₹34,238.7 crore, with a Price-to-Earnings (P/E) ratio of 65.4, which is above the industry median. However, the PEG (Price/Earnings to Growth) ratio of 14.8 indicates relatively expensive valuation against growth. Revenue growth YoY for the quarter was 17.2%, but net profit growth YoY was -5.6%, signalling challenges in margin management.

The Operating Profit Margin (OPM) for the quarter stood at 14.3%, slightly below the industry median, while the Return on Equity (ROE) and Return on Assets (RoA) were 13% and 9.3%, respectively, both above sector medians. The Piotroski Score, a measure of financial strength, remains weak at 4, suggesting scope for improvement in core financials.

Share Price Climbs ₹465 to Close at ₹39,235 Post Earnings Despite Drop in Profit

On 1 August 2025, Honeywell Automation India Ltd’s stock rose ₹465 or 1.20%, closing at ₹39,235 on the NSE. The stock opened at ₹38,700 and hit a day’s high of ₹39,235 before settling at its peak by 3:30 PM IST. Despite the profit decline, investors responded positively, likely driven by the 23.2% YoY revenue surge, which signals continued demand in core industrial automation sectors. The company’s market cap now stands at ₹34.46K crore, and the P/E ratio is 66.25, indicating sustained investor interest. The 52-week range spans from ₹31,025 to ₹55,408.

Honeywell Automation India: Pioneer in Industrial and Infrastructure Automation

Honeywell Automation India Ltd, listed on both NSE and BSE, is a leading player in automation and control systems across industrial, commercial, and infrastructure segments. The company delivers solutions in building technologies, process solutions, performance materials, and safety equipment. It operates from its headquarters in Pune, Maharashtra, and is part of the global Honeywell Group, known for technology-driven automation solutions.

REF: https://nsearchives.nseindia.com/corporate/HONAUT_01082025164306_SEResults30062025.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations