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What is the story about?
Shares of Honeywell Automation India gained more than 10% after the company reported June quarter earnings, with standalone net profit rising 20.9% year-on-year, supported by improved operating margins despite modest revenue growth.
The company's net profit increased to ₹150.7 crore during the quarter from ₹124.6 crore a year earlier. Revenue from operations rose 1.8% to ₹1,204.4 crore from ₹1,183.1 crore, marginally below the Street estimate of ₹1,230 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 21.9% to ₹172.5 crore from ₹141.5 crore, ahead of the consensus estimate of ₹160.7 crore. EBITDA margin expanded to 14.3% from 12% a year ago, comfortably beating the Street estimate of 12.8%, while net profit was broadly in line with the estimate of ₹149.7 crore.
Also read: P&G Hygiene and Health Care shares slip 5% after Q1 profit drops 34%, margin contracts
The margin outperformance was aided by stronger gross margins and extended the gradual improvement seen over the last few quarters, with operating margins remaining in the 13-16% range. However, margins are still below the peak levels of around 19% reported during FY20 and FY21.
Revenue growth, however, remained muted, rising just 1.8% year-on-year, marking the slowest quarterly revenue growth since the December 2024 quarter.
Total income increased to ₹1,250.8 crore from ₹1,224.9 crore a year ago, while profit before tax rose 20.9% to ₹203.1 crore from ₹168 crore. Earnings per share improved to ₹170.45 from ₹140.95 in the year-ago quarter.
During the quarter, the company's cost of materials consumed declined to ₹584.9 crore from ₹666.3 crore a year earlier, while employee benefit expenses increased to ₹232.8 crore from ₹216.9 crore.
Purchases of stock-in-trade rose to ₹131.4 crore from ₹112.4 crore, while other expenses increased to ₹88.4 crore from ₹84 crore. Total expenses declined to ₹1,047.7 crore from ₹1,056.9 crore, helping support profitability despite slower top-line growth.
Honeywell Automation India operates in a single business segment—Automation & Control Systems—and does not have any subsidiary or associate companies.
Shares of the company surged as much as 10.6% after the June-quarter results announcement, hitting an intraday high of ₹41,495. The stock has since pared some of those gains and was trading around ₹39,655, up 5.7%.
With Wednesday's gains, the stock has turned positive on a one-year basis. It has advanced about 20% so far in 2026.
The company's net profit increased to ₹150.7 crore during the quarter from ₹124.6 crore a year earlier. Revenue from operations rose 1.8% to ₹1,204.4 crore from ₹1,183.1 crore, marginally below the Street estimate of ₹1,230 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 21.9% to ₹172.5 crore from ₹141.5 crore, ahead of the consensus estimate of ₹160.7 crore. EBITDA margin expanded to 14.3% from 12% a year ago, comfortably beating the Street estimate of 12.8%, while net profit was broadly in line with the estimate of ₹149.7 crore.
Also read: P&G Hygiene and Health Care shares slip 5% after Q1 profit drops 34%, margin contracts
The margin outperformance was aided by stronger gross margins and extended the gradual improvement seen over the last few quarters, with operating margins remaining in the 13-16% range. However, margins are still below the peak levels of around 19% reported during FY20 and FY21.
Revenue growth, however, remained muted, rising just 1.8% year-on-year, marking the slowest quarterly revenue growth since the December 2024 quarter.
Total income increased to ₹1,250.8 crore from ₹1,224.9 crore a year ago, while profit before tax rose 20.9% to ₹203.1 crore from ₹168 crore. Earnings per share improved to ₹170.45 from ₹140.95 in the year-ago quarter.
During the quarter, the company's cost of materials consumed declined to ₹584.9 crore from ₹666.3 crore a year earlier, while employee benefit expenses increased to ₹232.8 crore from ₹216.9 crore.
Purchases of stock-in-trade rose to ₹131.4 crore from ₹112.4 crore, while other expenses increased to ₹88.4 crore from ₹84 crore. Total expenses declined to ₹1,047.7 crore from ₹1,056.9 crore, helping support profitability despite slower top-line growth.
Honeywell Automation India operates in a single business segment—Automation & Control Systems—and does not have any subsidiary or associate companies.
Shares of the company surged as much as 10.6% after the June-quarter results announcement, hitting an intraday high of ₹41,495. The stock has since pared some of those gains and was trading around ₹39,655, up 5.7%.
With Wednesday's gains, the stock has turned positive on a one-year basis. It has advanced about 20% so far in 2026.
