Honeywell Automation India delivered robust financial performance in the quarter ended June 2026, with standalone net profit rising 20.95% to ₹150.70 crore compared to ₹124.60 crore in the corresponding quarter of the previous year. According to reports from CNBC TV18, this significant profit growth demonstrates the company's operational efficiency and market positioning during the quarter. On a sequential basis, profit declined 5.6% from ₹159.7 crore in Q4 FY26, indicating typical quarterly fluctuations in business performance. The company's earnings per share improved to ₹170.45 from ₹140.95 in the year-ago quarter, reflecting enhanced profitability per share.
The company's sales increased 1.80% to ₹1,204.40 crore in Q1 FY2026, up from ₹1,183.10 crore in the same quarter of the previous fiscal year. As reported by CNBC TV18, this modest revenue growth indicates steady business momentum despite challenging market conditions. However, revenue growth 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 revenue also showed positive sequential growth of 2.0% quarter-on-quarter from ₹1,180.7 crore in Q4 FY26, demonstrating consistent business expansion across quarters.
Operating profit margin (OPM) improved to 14.32% in the June 2026 quarter compared to 11.96% in the corresponding quarter of the previous year. According to CNBC TV18, EBITDA margin expanded to 14.3% from 12% a year ago, comfortably beating the Street estimate of 12.8%, while EBITDA grew 21.9% to ₹172.5 crore from ₹141.5 crore, ahead of the consensus estimate of ₹160.7 crore. This 236 basis points improvement in operating margins reflects enhanced operational efficiency and better cost management during the quarter. 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.
Profit before tax (PBT) increased 20.9% to ₹203.10 crore in Q1 FY2026 from ₹168.00 crore in the previous year quarter. As reported by CNBC TV18, profit before tax rose 20.9% to ₹203.1 crore from ₹168 crore, while PBDT (Profit Before Depreciation and Tax) rose 19% to ₹216.60 crore from ₹181.40 crore, indicating strong operational performance across key financial metrics during the quarter. The company reported a tax expense of ₹52.4 crore for the quarter, up 20.7% YoY from ₹43.4 crore in Q1 FY26, reflecting increased tax obligations. Total expenses declined to ₹1,047.7 crore from ₹1,056.9 crore, helping support profitability despite slower top-line growth.
Honeywell Automation India Limited (HAIL) was established in 1987 as a joint venture between Tata and Honeywell, with each holding 39.54% stake initially. The company later became a Fortune India 500 company and is now engaged primarily in automation and control systems on a turnkey basis. Following the strong quarterly results, shares 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 gains and was trading around ₹39,655, up 5.7%. With Wednesday's gains, the stock has turned positive on a one-year basis and has advanced about 20% so far in 2026. According to CNBC TV18, the company operates in a single business segment—Automation & Control Systems—and does not have any subsidiary or associate companies. JM Financial has recommended a Buy on Honeywell Automation with a target price of ₹48,740, citing strong margins and growth potential. The broker expects gross margins to remain stable at 40-41% leading to 15-16% EBITDA margins, with potential for further expansion to 18-20% if management's 'razor and razor blade' approach succeeds.
