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Key Points

Honeywell Automation shares have plunged 27% in the last year, reflecting investor concerns. The company reported an 8.7% drop in Q1 profit despite a 23% revenue increase. Rising material and employee costs squeezed margins, with EBITDA falling sharply. The automation solutions provider continues to face profitability challenges despite strong sectoral demand.

Key Points: Honeywell Automation Shares Drop 27% as Q1 Profit Falls 8.7%

  • Shares down 27% over past year with Rs 14,692 drop
  • Q1 profit falls 8.7% YoY to Rs 124.6 crore
  • Revenue rises 23.2% but expenses surge 28.8%
  • EBITDA margin shrinks to 11.9% from 16% last year
2 min read

Honeywell Automation's shares down 27 pc in last 1 year, Q1 profit falls 8.7 pc

Honeywell Automation shares decline 27% in a year amid 8.7% Q1 profit drop despite revenue growth, weighed by rising costs.

"Higher costs weighed on profitability as EBITDA fell 8.4% despite 23.2% revenue growth. – Regulatory Filing"

Mumbai, Aug 2

Honeywell Automation India Limited’s stock has lost 27.24 per cent over the past year, falling by Rs 14,692.35, according to latest official data on Saturday.

So far in 2025, the shares were down 6.89 per cent, even as they have posted a modest gain of 2.95 per cent in the last six months.

On Friday, Honeywell Automation’s shares closed at Rs 39,021.60 on the Bombay Stock Exchange (BSE), up Rs 256.60 or 0.66 per cent for the day.

Meanwhile, the company declared its Q1 FY26 result on Friday and has reported an 8.7 per cent year-on-year (YoY) drop in net profit to Rs 124.6 crore for the April–June quarter, compared to Rs 136.5 crore in the same period previous year (Q1 FY25).

Revenue from operations rose sharply by 23.2 per cent to Rs 1,183 crore from Rs 960.4 crore a year ago, according to its stock exchange filing.

However, higher costs weighed on profitability. The company’s operating profit (EBITDA) fell 8.4 per cent to Rs 141.3 crore, while the EBITDA margin dropped to 11.9 per cent from 16 per cent previous year.

Total expenses increased by 28.79 per cent to Rs 1,056.9 crore in the June quarter, the company said in its regulatory filing.

The cost of materials consumed jumped 51.39 per cent to Rs 666.3 crore, while employee expenses rose 17.81 per cent to Rs 216.9 crore.

Finance costs stood at Rs 1.9 crore, depreciation and amortisation at Rs 13.4 crore, and other expenses at Rs 84 crore.

Honeywell Automation India provides integrated automation and software solutions, including process and building solutions.

The company operates in various sectors, including industrial automation, building management, and advanced sensing technologies.

HAIL offers process solutions like distributed control systems (DCS), SCADA, and programmable logic controllers (PLCs) for optimising industrial operations.

- IANS

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Reader Comments

P
Priya S
Revenue growth of 23% is impressive though! Maybe this is temporary pain for long-term gain? Automation sector has huge potential in India's manufacturing push 🚀
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Aman W
Typical MNC problem - high employee costs and material imports hurting margins. Indian automation companies like Siemens India performing much better comparatively.
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Sarah B
Interesting to see revenue up but profits down. Shows how inflation is hitting even big companies. Their building management solutions are top-notch though - used them in our Pune office!
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Vikram M
At ₹39k per share, this is still out of reach for retail investors like me. Wish they'd do a stock split to make it more affordable for common people to invest.
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Nisha Z
The 6-month gain gives some hope. Maybe good time to accumulate for long term? Automation is future with Make in India initiative. But management needs to address cost issues urgently.
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Karan T
As someone in industrial automation sector, I can say Honeywell's quality is unmatched but their pricing needs to become more competitive against Chinese alternatives.

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