A Tough Quarter for Honeywell Automation

Honeywell Automation India's shares have struggled. The stock is down 27% over the last year. This represents a significant decline of over Rs 14,000. So far this year, shares have fallen 6.89%. They did show a small 2.95% gain over the past six months.

Q1 Profit Drops Despite Revenue Growth

The company's recent Q1 FY26 results show a mixed picture. Net profit fell 8.7% year-on-year. This brings the total to Rs 124.6 crore. In contrast, revenue from operations jumped 23.2% to Rs 1,183 crore. This strong revenue growth did not lead to higher profits.

Rising Costs Impact Profitability

Higher expenses cut into the company's earnings. Operating profit (EBITDA) dropped 8.4%. The EBITDA margin also decreased. It fell from 16% to 11.9%. Total expenses increased by almost 29%. Specifically, the cost of materials consumed soared by over 51%. Employee expenses also rose by 17.81%. These rising costs hurt the company's bottom line.

Honeywell Automation’s Market Position

Honeywell Automation provides key solutions. They offer integrated automation and software solutions. Their products serve many sectors. These include industrial automation and building management. They also focus on advanced sensing technologies. The company supplies essential process solutions. These include DCS, SCADA, and PLCs. These systems help optimize industrial operations.