Honeywell India: margin slips despite +17.78% YoY operating-profit growth
Expenses rose +3.59% QoQ against +1.62% revenue growth, while other income made up 23.23% of pre-tax profit.
Filed 27 Oct 2026, 15:56 IST · after market close · Honeywell Automation India Ltd (HONAUT)
Key takeaways
- Standalone operating margin fell 1.66 percentage points sequentially to 12.66% as expenses grew 3.59% against 1.62% revenue growth.
- Year-on-year net profit rose 11.88% even as other income contributed 23.23% of profit before tax.
- Operating margin remained 1.72 percentage points above the 10.94% median for 37 Industrials peers that had reported.
Price around the results
Sequential growth came with lower operating leverage
Honeywell Automation India reported standalone revenue growth of 1.62% sequentially, but expenses rose 3.59%, reducing operating profit by 10.14%. Operating margin therefore narrowed 1.66 percentage points to 12.66%, the second consecutive quarterly decline after 15.65% in Q4FY26 and 14.32% in Q1FY27.
Year-on-year margins improved despite profit-quality limits
The year-on-year comparison was better: revenue grew 6.48% while expenses rose 5.02%, lifting operating margin by 1.21 percentage points and operating profit by 17.78%. Net profit grew 11.88%, below operating-profit growth as other income fell 4.98%, while depreciation increased 12.4%. Other income still represented 23.23% of pre-tax profit, and the tax rate rose 0.41 percentage points year-on-year and 0.25 percentage points sequentially.
Margin stayed above the Industrials peer median
The company's 12.66% operating margin was 1.72 percentage points above the 10.94% median among 37 Industrials peers that had reported the same quarter. That relative position coexisted with a sequential decline from 14.32%, making the direction of quarterly margin performance the key change in this result.
The market response is still pending
The standalone results were filed after market close, so there was no current-session reaction to assess. Across the last eight results, the stock rose four times and fell four times, with a median absolute move of 3.13%; the recorded recent moves ranged from -1.42% to 15.85%.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,224 cr | ₹1,204 cr | +1.62% | +6.48% |
| Other income | ₹42 cr | ₹46 cr | -9.48% | -4.98% |
| Expenses | ₹1,069 cr | ₹1,032 cr | +3.59% | +5.02% |
| Operating profit | ₹155 cr | ₹173 cr | -10.14% | +17.78% |
| Operating margin (%) | 12.66% | 14.32% | — | — |
| Interest | ₹2 cr | ₹2 cr | -26.09% | -22.73% |
| Depreciation | ₹15 cr | ₹14 cr | +7.41% | +12.40% |
| Profit before tax | ₹181 cr | ₹203 cr | -10.98% | +12.51% |
| Tax | ₹47 cr | ₹52 cr | -10.11% | +14.32% |
| Net profit | ₹134 cr | ₹151 cr | -11.28% | +11.88% |
| EPS (₹) | ₹151.17 | ₹170.45 | -11.31% | +11.87% |
Operating margin of 12.66% compares with a Industrials sector median of 10.94% across 37 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.76% | -2.54% |
Volume on the results session was 3.88× its 20-day average.
What to watch
- Whether operating margin holds above 12.66% after two consecutive quarterly declines.
- Whether expenses grow more slowly than the 1.62% sequential revenue pace.
- Whether other income remains close to 23.23% of pre-tax profit.