Company Overview

Honeywell Automation India Limited (BSE: 517174, NSE: HONAUT) reported its FY 2025-26 financial results and submitted a corrected Annual Report under SEBI Regulation 34(1) to fix a typo in director commission amounts on page 16.

Financial Performance

Revenue & Profitability: The company reported revenue of ₹46,819 million (up 11.8% YoY) and net profit of ₹5,250 million (up 0.3% YoY). Profit Before Tax stood at ₹7,088 million with an effective tax rate of 25.93%. Earnings per share reached ₹593.81.

Dividend & Capital: The Board recommended a final dividend of ₹110 per equity share, representing a 4.8% increase from the previous year. The company maintains a strong capital structure with paid-up capital of ₹88.415 million, net worth of ₹44,627 million, and no debt outstanding.

Liquidity & Assets: The company demonstrated strong liquidity with cash equivalents of ₹5,647 million and bank deposits of ₹32,411 million. Key balance sheet items include trade receivables (net) of ₹11,830 million, property, plant and equipment of ₹973 million, and right-of-use assets of ₹1,043 million.

Operational Metrics & Ratios

  • Return on net worth: 11.8% (decreased by 1.7%)
  • Debtors turnover ratio: 4.0 (improved from 3.9)
  • Inventory turnover ratio: 12.7 (slight decrease from 12.8)
  • Current ratio: 3.5 (decreased from 3.6)
  • Operating profit margin: Decreased by 1.5%
  • Net profit margin: Decreased by 1.3%
  • Cash flow from operations: ₹4,926 million (up 15.6%)

Related Party Transactions

Significant transactions with Honeywell group entities accounted for approximately 40% of total sales. For FY27, the company seeks approval for:

  • Honeywell International Inc. (Ultimate Holding Company): ₹9,500M limit (20.3% of FY26 turnover)
  • Honeywell Measurex Ireland Limited (Fellow Subsidiary): ₹7,700M limit (16.4% of FY26 turnover)

Previous year transactions were ₹6,159M with Honeywell International and ₹5,018M with Honeywell Measurex Ireland.

AGM Details & Corporate Governance

The 42nd Annual General Meeting will be held on July 29, 2026, with key agenda items including:

  • Adoption of audited financial statements
  • Declaration of final dividend of ₹110 per share (Record Date: July 17, 2026)
  • Re-appointment of Mr. Ashish Kumar Modi
  • Commission payment to Dr. Ganesh Natarajan
  • Approval of material related party transactions
  • Ratification of Cost Auditor's remuneration

Management Changes & Board Composition

  • Mr. Pedro Thena Garrote resigned as Non-Executive Director (November 5, 2025)
  • Mr. Jake Morgan Wasserman appointed as Additional Director (November 5, 2025)
  • Dr. Ganesh Natarajan re-appointed as Independent Director until March 7, 2029
  • Mr. Pulkit Goyal resigned as CFO (May 21, 2026)
  • Mr. Satish Kumar Agarwal appointed as CFO (June 1, 2026)

Contingencies & Provisions

The company disclosed contingent liabilities including direct tax matters (₹405 million), indirect tax matters (₹198 million), and other claims (₹111 million). Provisions include warranty (₹27 million), litigations (₹260 million), and cost to complete contracts (₹797 million).

ESG & Employee Statistics

Environmental Initiatives: Committed to carbon neutrality by 2035, consumed 3.51 million kWh of green energy (43% utilization), and established additional 530 kWp onsite solar plant.

Social Initiatives: CSR expenditure of ₹130 million through Honeywell Hometown Solutions India Foundation, impacting 4,000+ community members and training 28,000+ students.

Workforce: Total employees: 3,167 (women represent 18.8% of workforce), with employee turnover rate of 9.3% for permanent employees.

Regulatory Compliance & Auditors

No material adverse remarks from auditors. Statutory Auditors: Walker Chandiok & Co LLP; Cost Auditors: C S Adawadkar & Co.; Secretarial Auditors: J B Bhave & Co. All statutory dues regularly deposited with one complaint of sexual harassment received and resolved during FY26.

Forward Outlook

The company remains optimistic about growth opportunities in automation, digitalization and sustainability sectors, targeting 2x GDP growth while maintaining profitability and working capital discipline.