Other-income loss pushes Honda Power into the red despite better operations
Revenue momentum improved and operating margin expanded, but a Rs 26.88 cr other-income loss drove a Rs 4.06 cr standalone net loss.
Filed 05 Nov 2026, 17:29 IST · after market close · Honda India Power Products Ltd (HONDAPOWER)
Key takeaways
- Honda India Power Products' standalone operating profit rose 101.59% QoQ to Rs 29.09 cr as revenue growth of 35.38% outpaced expense growth of 29.92%.
- A Rs 26.88 cr other-income loss more than offset operating profit, turning pre-tax profit from Rs 15.10 cr into a Rs 5.24 cr loss.
- Operating margin rose 3.73 percentage points to 11.35%, just 0.15 percentage points below the 11.50% median for 178 Industrials peers.
Price around the results
Revenue growth outpaced costs in Q2FY27
Honda India Power Products reported standalone revenue growth of 35.38% QoQ, while expenses rose 29.92%. That operating leverage lifted operating profit 101.59% to Rs 29.09 cr and expanded operating margin by 3.73 percentage points to 11.35%.
Other income erased the operating gain
Other income swung from Rs 7.42 cr in Q1FY27 to a loss of Rs 26.88 cr in Q2FY27. The loss more than offset operating profit, taking pre-tax profit from Rs 15.10 cr to a loss of Rs 5.24 cr; other income accounted for 512.98% of pre-tax profit. The 3.97-percentage-point fall in the tax rate and a Rs 1.18 cr tax credit did not prevent a Rs 4.06 cr net loss.
Margin moved closer to the Industrials peer median
The 11.35% operating margin was 0.15 percentage points below the 11.50% median among 178 Industrials peers that had reported the quarter. Sequentially, margin improved from 7.62%, but the available trend covers only the preceding quarter, so it does not establish a longer multi-quarter direction.
Results were filed after market close
The standalone results were filed after market close on 5 November 2026. No post-results market reaction is covered because the results were too fresh at the time of reporting.
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 |
|---|---|---|---|
| Revenue | ₹256 cr | ₹189 cr | +35.38% |
| Other income | ₹-27 cr | ₹7 cr | — |
| Expenses | ₹227 cr | ₹175 cr | +29.92% |
| Operating profit | ₹29 cr | ₹14 cr | +101.59% |
| Operating margin (%) | 11.35% | 7.62% | — |
| Interest | ₹0 cr | ₹0 cr | -16.67% |
| Depreciation | ₹7 cr | ₹7 cr | +10.61% |
| Profit before tax | ₹-5 cr | ₹15 cr | — |
| Tax | ₹-1 cr | ₹4 cr | — |
| Net profit | ₹-4 cr | ₹11 cr | — |
| EPS (₹) | ₹-4.00 | ₹10.94 | — |
Operating margin of 11.35% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 11.35% after the sequential improvement.
- Whether other income recovers from the Rs 26.88 cr loss and allows operating profit to flow through to pre-tax profit.
- Whether expenses continue to grow slower than revenue, after QoQ growth of 29.92% versus 35.38%.