Honeywell Automation India Limited Earnings Summary — Q1 FY2027
Honeywell Automation India Delivers 21% Net Profit Growth in Q1 FY2027 Amid Project Efficiency and Favorable Mix
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹1,204 Cr is 1.8% higher year-on-year.
- Revenue has compounded at 11.1% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹151 Cr is 20.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 0.7% annualised across the period.
- Operating margin stands at 14.3% in Q1 FY2027.
- Operating margin expanded by 236 bps year-on-year.
- Over the last two years operating margin has contracted by 174 bps.
- PBT margin is 16.9%.
- Expense growth of -0.9% remained below revenue growth of 1.8%.
- Operating profit of ₹173 Cr is 21.9% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 70/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,204 | 1,181 | 1,169 | 1,149 | 1,183 | 1,115 | 1,091 | 1,024 | 960 | 951 |
| Expenses | Improving | 1,032 | 996 | 1,021 | 1,018 | 1,042 | 955 | 949 | 895 | 806 | 781 |
| Operating Profit | Accelerating | 173 | 185 | 148 | 132 | 142 | 159 | 142 | 129 | 154 | 170 |
| Operating Margin | Stable | 14.3% | 15.7% | 12.6% | 11.4% | 12.0% | 14.3% | 13.0% | 12.6% | 16.1% | 17.9% |
| Other Income | Stable | 46 | 47 | 34 | 44 | 42 | 47 | 50 | 41 | 44 | 42 |
| Interest | Improving | 2 | 1 | 4 | 2 | 2 | 2 | 2 | 1 | 1 | 1 |
| Depreciation | Stable | 14 | 15 | 13 | 13 | 13 | 14 | 14 | 14 | 13 | 14 |
| Profit Before Tax | Stable | 203 | 215 | 165 | 161 | 168 | 190 | 176 | 155 | 184 | 197 |
| Tax | Stable | 52 | 56 | 44 | 41 | 43 | 50 | 44 | 40 | 48 | 49 |
| Net Profit | Accelerating | 151 | 160 | 121 | 120 | 125 | 140 | 132 | 115 | 137 | 148 |
| Net Margin | Stable | 12.5% | 13.5% | 10.4% | 10.4% | 10.5% | 12.6% | 12.1% | 11.2% | 14.2% | 15.6% |
Key Takeaways
- Revenue grew a modest 1.8% year-on-year to ₹12,044 million, but profitability outpaced top-line growth significantly.
- Net profit surged by 21% year-on-year to ₹1,507 million, driven by improved material cost efficiency and a lack of exceptional items seen in the prior quarter.
- Operational expenses were tightly controlled, with cost of materials consumed decreasing from ₹6,663 million in Q1 FY26 to ₹5,849 million in the current quarter.
- The company maintains a debt-free status and continues to operate within a single business segment: 'Automation & Control Systems'.
- Profitability slightly declined sequentially (QoQ) by 5.6% from Q4 FY26 due to higher employee benefit expenses, which rose from ₹2,058 million to ₹2,328 million.
- Management highlighted key wins in emerging sectors including Green Hydrogen plant automation and airport modernization projects.
- The domestic business continues to benefit from infrastructure and energy transition megatrends, targeting growth at 2X the GDP.
Management Guidance
Management is focusing on organic growth through asset efficiency and energy transition, specifically capitalizing on digital trends and software in automation. They aspire to grow at 2X the national GDP, driven by infrastructure development and urbanization.
Sentiment Shift
Improving
The company demonstrated strong margin expansion year-on-year, successfully translating modest revenue growth into significant profit gains despite inflationary pressures on employee costs.
Outlook
The outlook remains robust as the company pivots toward automation in emerging industries like Lithium-ion battery Giga-factories and renewable energy storage, while maintaining a strong annuity-based service model.
From the Annual Report (Key Quotes)
“Our aspiration is to grow 2X the GDP. Historically, we have grown 1.5X.”
“The portfolio of the wins reflects a good pivot towards automation in emerging industries where investments are coming in.”
“Honeywell Automation India Limited has a very focused portfolio aligned to the India automation mega trend.”
Official Quarterly Documents
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This summary is AI-generated from Honeywell Automation India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.