Honeywell Automation India Q4: 14% PAT, Rs 110 dividend

Stock jumps after results and dividend recommendation

Shares of Honeywell Automation India rose sharply in Thursday’s afternoon trade after the company reported its Q4 FY26 results and announced a final dividend recommendation. The stock climbed as much as 18.55% to Rs 35,769.55, compared with the previous close of Rs 30,172.35. In another market update during the session, the shares were also reported up 14.67% to around Rs 34,600 by 12:46 PM, underscoring strong intraday momentum. The rally came alongside a brokerage upgrade that added to sentiment. The company is known for integrated automation and software solutions, and its quarterly print showed steady growth in revenue and sharper improvement in operating profitability.

Q4 FY26 profit rises 14% year-on-year

Honeywell Automation India reported standalone profit after tax (PAT) of Rs 159.7 crore for the quarter ended March 31, 2026, up 14.15% from Rs 139.9 crore in Q4 FY25. Profit before tax (PBT) rose 13.19% to Rs 215.3 crore from Rs 190.2 crore a year earlier. The company also reported sequential momentum, with PAT rising from Rs 121.2 crore in Q3 FY26, implying about 31.8% quarter-on-quarter growth. Total income for Q4 FY26 stood at Rs 1,228.2 crore versus Rs 1,161.1 crore in Q4 FY25. The set of numbers reinforced the view that profitability improved faster than topline growth during the quarter.

Revenue grows 5.9% while costs rise more slowly

Revenue from operations increased 5.93% year-on-year to Rs 1,180.7 crore in Q4 FY26, compared with Rs 1,114.5 crore in Q4 FY25. Total expenses increased 4.23% year-on-year to Rs 1,011.99 crore in the March 2026 quarter. A slower increase in expenses relative to revenue supported margin expansion. The cost of materials consumed was Rs 593.5 crore, down 1.23% year-on-year. Employee benefit expenses rose 15.29% year-on-year to Rs 205.8 crore during the quarter.

EBITDA rises 15.2% and margin expands to 15.6%

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 15.2% year-on-year to Rs 184.1 crore in Q4 FY26 from Rs 159.8 crore last year. Reported EBITDA margin improved to 15.6% from 13.44% in the corresponding quarter. The improvement in operating profitability stood out because revenue growth was mid-single digit, while EBITDA grew in the mid-teens. Some market commentary around the results also cited EBITDA at Rs 184.8 crore and margin at 15.7%, but the company’s reported EBITDA increase to Rs 184.1 crore and margin at 15.6% were the key figures highlighted.

Final dividend of Rs 110 per share for FY26

The board recommended a final dividend of Rs 110 per equity share (face value Rs 10 each) for the financial year ended March 31, 2026. The company described this as a dividend rate of 1,100% of face value, subject to shareholder approval at the ensuing Annual General Meeting (AGM). The AGM is scheduled for July 29, 2026, according to the disclosed timeline. The record date to determine shareholder entitlement has been fixed as July 17, 2026. If approved, dividend payment will commence from August 5, 2026. Another report noted that the company had previously declared a dividend of Rs 105 per share.

Brokerages react: JM Financial upgrades, Antique stays on hold

Brokerage JM Financial upgraded the stock to “buy” and set a price target of Rs 44,000 per share. The target implied an upside of 45.8% from the previous close cited in the report. JM Financial also noted the stock was trading at about 34 times FY28 estimated price-to-earnings, and described it as the lowest among automation peers in its coverage set. At the same time, it flagged that revenue was “slightly lower” than its estimate, while suggesting EBITDA margin could recover in FY27 due to limited need for further loss order provisioning, based on prior years.

Antique Stock Broking said the Q4 FY26 performance came in better than expected, supported by margin performance. It noted operating margin pressure over the past two years, citing that margin fell by around 100 basis points to about 14% over FY23 to FY25, while export contribution increased to 42% in the same period. Antique maintained a ‘hold’ rating and set a revised target price of Rs 34,369 (from Rs 34,357), valuing the stock at 45 times its FY28 estimated earnings per share.

Market move and valuation snapshot

The intraday surge also lifted Honeywell Automation India’s market capitalisation, which was reported at Rs 31,033 crore during the session. The sharp move followed the combination of earnings, dividend recommendation, and brokerage commentary in quick succession. The stock was reported at different points in the session between Rs 32,611.35 and Rs 35,769.55, reflecting a volatile but positive reaction as investors digested the numbers and dividend timeline.

Key numbers at a glance

FY26 annual performance (reported in the same coverage)

In the same set of reports around the results, Honeywell Automation India’s annual revenue for the year ended March 31, 2026 was stated at ₹46,819 million, which is Rs 4,681.9 crore when expressed in crore. Annual net profit was stated at ₹5,250 million, equivalent to Rs 525.0 crore. These figures provide context to the Q4 performance and the company’s capacity to recommend a high final dividend, though the quarterly release remained the immediate catalyst for the stock’s sharp move.

What investors will watch next

The next key dates are now tied to the dividend process: the record date on July 17, 2026, the AGM on July 29, 2026, and the expected commencement of dividend payment from August 5, 2026, if shareholders approve the proposal. Beyond dividends, the focus will remain on whether the margin expansion in Q4 sustains, given that brokerages have linked potential re-rating to operating margin recovery and the trajectory of provisioning needs.