Financial Performance Highlights (₹ in millions)

  • Revenue from Operations: ₹46,819 million (11.8% YoY growth from ₹41,896 million)
  • Domestic Revenue: ₹31,306 million (15.4% growth)
  • Export Revenue: ₹15,513 million (5.1% growth)
  • Profit Before Tax: ₹7,088 million (compared to ₹7,056 million in FY25)
  • Profit After Tax: ₹5,250 million (compared to ₹5,236 million in FY25)
  • Net Profit Margin: 11.2% (decreased from 12.5% in FY25)
  • Exceptional Item: ₹123 million net impact from past service cost due to new Labour Codes
  • Cash Flow from Operations: ₹4,926 million (93.8% of PAT)
  • Earnings Per Share: ₹593.81 (increased by 0.3% from ₹592.15 in FY25)
  • Dividend Per Share: ₹110 (increased by 4.8% from ₹105 in FY25)
  • Total Dividend Payout: ₹973 million if approved
  • Net Worth: ₹44,627 million (from ₹40,382 million in FY25)

Key Operational Metrics

  • Return on Net Worth: Decreased by 1.7%
  • Debtors Turnover Ratio: 4.0 (improved from 3.9 in FY25)
  • Inventory Turnover Ratio: 12.7 (slight decrease from 12.8 in FY25)
  • Current Ratio: 3.5 (decreased from 3.6 in FY25)
  • Operating Profit Margin: Decreased by 1.5%

Dividend Declaration

  • Final dividend of ₹110 per equity share (1100% of face value of ₹10) recommended by Board
  • Record Date: Friday, July 17, 2026
  • Payment Date: Wednesday, August 5, 2026 (if approved at AGM)
  • Dividend will be processed only in electronic mode as per SEBI mandate

Annual General Meeting Details

  • 42nd AGM Date: Wednesday, July 29, 2026
  • Time: 4:00 PM IST
  • Mode: Video Conferencing/Other Audio Visual Means
  • Deemed Venue: Registered Office at Pune

AGM Agenda

Ordinary Business:

1. Adoption of audited financial statements for FY 2025-26

2. Declaration of final dividend of ₹110 per share

3. Re-appointment of Mr. Ashish Kumar Modi (DIN: 07680512) who retires by rotation

Special Business:

4. Payment of commission to Dr. Ganesh Natarajan exceeding 50% of total remuneration to Non-Executive Directors

5. Approval of Material Related Party Transactions with Honeywell International Inc (Ultimate Holding Company) for aggregate value not exceeding ₹9,500 million during FY 2026-27

6. Approval of Material Related Party Transactions with Honeywell Measurex (Ireland) Limited (Fellow Subsidiary) for aggregate value not exceeding ₹7,700 million during FY 2026-27

7. Ratification of Cost Auditor's remuneration of ₹700,000 plus applicable taxes for FY 2026-27

Board and Management Changes

  • Mr. Pedro Thena Garrote resigned as Non-Executive Director effective November 5, 2025
  • Mr. Jake Morgan Wasserman appointed as Additional Director (Non-Executive) effective November 5, 2025
  • Dr. Ganesh Natarajan re-appointed as Independent Director for second term of 3 years from March 8, 2026 to March 7, 2029
  • Mr. Pulkit Goyal resigned as Chief Financial Officer effective May 21, 2026
  • Mr. Satish Kumar Agarwal appointed as Chief Financial Officer effective June 1, 2026
  • Ms. Nandini Vishwas to resign as Internal Auditor effective August 1, 2026

Significant Accounting Policies and Estimates

The financial statements detail critical judgments in revenue recognition from turnkey contracts using cost-based input method, contract completion estimates, employee benefit obligations (gratuity discount rate: 6.85%), impairment of financial assets (15.57% provision for receivables over 90 days), and lease accounting.

ESG Highlights

Environmental:

  • Commitment to carbon neutrality by 2035
  • Consumed 3.51 million kWh of green energy (43% utilization rate)
  • Implemented Forge - Predictive Maintenance solution for digital monitoring of assets
  • Additional 530 kWp onsite solar plant established through PPA

Social:

  • CSR initiatives through Honeywell Hometown Solutions India Foundation (HHSIF):
  • IITB-Honeywell COE for Future Skills & Innovation: 364 students trained in sustainability skills
  • Honeywell Future Skills Edge: 28,000+ students reached, 864 completed AI & Cybersecurity training
  • Holistic Community Development: 4,000+ community members impacted
  • Plant the Future Campaign: ~2.4 lakh saplings planted across Pune, Bangalore, and Mumbai
  • Required CSR spend of ₹130 million (2% of average net profit) fully utilized

Governance:

  • Robust governance framework aligned with strategic objectives and ethical standards
  • Board comprises 6 directors (2 Independent, 1 Managing Director, 3 Non-Executive)
  • All mandatory committees constituted and functional
  • No material adverse remarks from auditors

Related Party Transactions

FY 2025-26 Transactions (₹ in millions):

  • With Honeywell International Inc:
  • Sale of goods/services: ₹4,077
  • Purchase of goods/services: ₹2,082
  • Total: ₹6,159
  • With Honeywell Measurex (Ireland) Ltd:
  • Purchase of goods/services: ₹5,018
  • Total: ₹5,018
  • With Honeywell Middle East B.V.:
  • Sale of goods/services: ₹3,848
  • Total: ₹3,848

Sales to Honeywell group constituted approximately 40% of total net sales. All transactions conducted at arm's length basis in ordinary course of business.

Contingent Liabilities and Risk Factors

  • Contingent liabilities: ₹714 million primarily from disputed tax claims (direct taxes: ₹405 million, indirect taxes: ₹198 million)
  • Risk factors include geopolitical risks, inflation and energy price volatility, competitive pressures, foreign exchange fluctuations, and cybersecurity risks

Capital Structure and Employee Statistics

  • Paid-up Capital: ₹88.415 million (8,841,523 shares of ₹10 each)
  • Promoter Holding: 75% through HAIL Mauritius Limited
  • Public Holding: 25%
  • Dematerialized Shares: 99.74% of total shares
  • Total employees: 3,167 (as of March 31, 2026)
  • Women employees: 18.8% of workforce
  • Employee turnover rate: 9.3% for permanent employees

Business Segments and Geographic Revenue

The Company operates in a single segment: "Automation and Control Systems" with geographic revenue split between India (₹31,306 million) and Other countries (₹15,513 million).