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Honeywell Automation India Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤2nd Feb 26

Summary : Honeywell Automation India reports unaudited Q3 and 9M FY26 standalone financial results, showing revenue growth and stable profits, with board changes and an exceptional item due to Labour Code impacts.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total expenses for Q3 FY26: ₹10,379 million (vs ₹9,648 million in Q3 FY25).
  2. Total expenses for 9M FY26: ₹31,278 million (vs ₹26,952 million in 9M FY25).
  3. Exceptional item recognized: ₹114 million due to Labour Code changes.
  4. Revenue from operations for Q3 FY26: ₹11,687 million (vs ₹10,908 million in Q3 FY25).
  5. Revenue from operations for 9M FY26: ₹35,012 million (vs ₹30,751 million in 9M FY25).
  6. Other income (Net) for Q3 FY26: ₹455 million (vs ₹500 million in Q3 FY25).
  7. Other income (Net) for 9M FY26: ₹1,315 million (vs ₹1,355 million in 9M FY25).
  8. Paid-up equity share capital: ₹88 million.
  9. Other equity (as of March 31, 2025): ₹40,294 million.
  10. Unaudited Standalone Financial Results.
  11. Company has no subsidiary or associate companies.

Corporate Overview

  1. Preliminary financial impact assessment of changes to Labour Codes, increasing liabilities for gratuity and compensated absences.
  2. Automation & Control Systems
  3. Factual and formal reporting of financial results and board decisions.
  4. Only one segment: Automation & Control Systems

Risk Factors

  1. Labour Code changes impact liabilities.
  2. Future regulatory clarity needed.
  3. Review scope less than audit.

Key Drivers

  1. Revenue and profit growth.
  2. Board re-appointments ensure continuity.
  3. Unmodified audit review conclusion.

Auditor’s Report

  1. Unmodified conclusion on the unaudited financial results.
  2. Review conducted in accordance with Standard on Review Engagements (SRE) 2410, which is less in scope than an audit.

Board Commentary

  1. Re-appointment of Dr. Ganesh Natarajan as Independent Director for a second term.
  2. Appointment of Mr. Jake Morgan Wasserman as Independent Director.
  3. Financial impact from Labour Codes on gratuity (₹219 million) and compensated absences (₹55 million).
  4. Compliance with SEBI Listing Regulations 2015.
  5. Impact of Labour Codes on employee benefit liabilities, recognized as an Exceptional Item.

Corporate Governance

  1. Re-appointment of an Independent Director for a second term.
  2. Appointment of a new Independent Director.
  3. Audit Committee reviewed the results.

Management Discussion & Analysis

Future Strategy

  1. Monitoring developments relating to Labour Codes for further impact assessment on employee benefit liabilities.

Risk Control Measures

  1. Company is monitoring Labour Code developments and will evaluate future impact.

Critical Risks

  1. Increased liabilities due to changes in Labour Codes (Code on Wages, 2019).
Honeywell Automation India Ltd (HONAUT) Quarterly Report Analysis & Insights | Dhanarthi