Synopsis: A Pune-based automation major closed FY26 with steady profit growth, a record dividend payout, and strong revenue momentum – rewarding shareholders even as a one-time labour code charge weighed on reported earnings.
India’s industrial automation sector has been gaining steady ground on the back of rising capital expenditure across manufacturing and infrastructure. Against this backdrop, one of the country’s most prominent automation players has wrapped up FY26 with solid top-line growth, a marginal uptick in net profit, and one of its most generous dividend payouts in recent memory – signalling confidence in its financial position and cash generation ability.
With a market cap of Rs.30,184 Crore, Shares of Honeywell Automation India Ltd. are trading at a price of Rs. 35,140 per share i.e. 16.43% up from its previous closing price of Rs. 30,180. It is trading at a P/E ratio of 56.5.
FY26 Revenue and Profitability
Honeywell Automation India Limited posted revenue from operations of ₹4,681.9 crore for FY26, up 11.7% from ₹4,189.6 crore in FY25. Total income for the year stood at ₹4,860.9 crore, rising 11.2% against ₹4,371.7 crore in the previous year. Profit before tax came in at ₹708.8 crore for FY26, compared to ₹705.6 crore in FY25, reflecting a marginal growth of 0.5%. Net profit for the year was ₹525 crore, marginally ahead by 0.3% from ₹523.6 crore in FY25. Total expenses rose 12.9% to ₹4,139.8 crore from ₹3,666.1 crore, driven primarily by higher material costs and employee benefits expense, which stood at ₹838.7 crore for the year.
Exceptional Item and Q4 Performance
Profit before exceptional items and tax for FY26 stood at ₹721.1 crore. The company recognised an exceptional charge of ₹12.3 crore during the year, arising from a financial impact assessment of the Code on Wages, 2019 – a one-time, non-recurring item linked to increased liabilities for gratuity and compensated absences under the new Labour Codes. For the quarter ended March 31, 2026, revenue from operations was ₹1,180.7 crore, while net profit for the quarter came in at ₹159.7 crore. Basic and diluted EPS for the full year stood at ₹593.81.
Dividend Announcement
The Board of Directors has recommended a final dividend of ₹110 per equity share for FY26, representing a payout rate of 1,100% on the face value of ₹10 per share. This compares to a dividend of ₹105 per share declared for FY25. The dividend is subject to shareholder approval at the ensuing Annual General Meeting. The company’s total equity stood at ₹4,462.7 crore as of March 31, 2026, up from ₹4,038.2 crore a year earlier.
What the Brokerage Says
JM Financial has upgraded its rating on Honeywell Automation India to “buy” with a price target of ₹44,000 per share, implying an upside of nearly 25% from the current market price. The brokerage noted that while the company’s revenue was modestly below its estimates, margins have turned the corner based on the Q4 results. JM Financial added that the company’s profit margins are expected to improve in FY27, as it no longer needs to set aside large provisions for loss-making orders – a practice that had eaten into earnings in previous years.
The stock currently trades at 34 times its FY28 estimated price-to-earnings ratio, which the brokerage pointed out is the lowest among its automation peers, making it attractively valued relative to the sector.
About the Company
Honeywell Automation India Limited, headquartered in Pune, operates in the Automation and Control Systems segment. It provides advanced sensing, control, and automation solutions to industries including oil and gas, refining, chemicals, and building management. The company is a subsidiary of the global Honeywell group and is listed on both BSE and NSE.
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