Honeywell Automation India Ltd

AGM notice and governance

• Revised AGM notice for FY2025-26 uploaded; correction concerns commission payable to Independent Directors.
• AGM on July 29, 2026 at 4:00 PM via VC/OAVM; venue deemed at registered office.
• Reappointment of Ashish Modi; retires by rotation.

Related party transactions approvals

• MRPT with HII up to Rs 9,500 million and HMIL up to Rs 7,700 million for FY2026-27.
• Board authorised to finalise terms, execute documents, and seek approvals.
• Audit Committee approved; shareholder consent required; pricing at arm's length.

Dividend timing

• Cost Auditor remuneration: Rs 7,00,000 plus taxes for FY2026-27.
• Final dividend Rs 110 per equity share for FY2025-26.

Cost Auditor remuneration

• Board approved May 20, 2026; no related party concerns.
• Record date 17 July 2026; payment on 5 August 2026; electronic payout.

Financial results

• Quarter ended June 30, 2026: unaudited standalone results approved with Limited Review.
• Revenue from operations: ₹12,044 million.
• Total income: ₹12,508 million.
• Total expenses: ₹10,477 million.
• Profit before tax: ₹2,031 million.
• Profit for the period: ₹1,507 million.
• EPS: ₹170.45 (basic and diluted).
• Single operating segment: Automation & Control Systems.
• Note: Labour Codes impact led to ₹123 million exceptional item in FY2026.
• Audit: Audit committee reviewed and Board approved the results.
• Independent Auditor's Review: Walker Chandiok & Co LLP found no material misstatement.

Demat/Remat disclosure

• Details of securities dematerialised/rematerialised during the period were furnished to all stock exchanges.

Meeting Details

• Board meeting scheduled for July 29, 2026; time and venue not disclosed.

Key Agenda Items

• To approve unaudited Q1 FY2026 financial results (quarter ended June 30, 2026).

Other Notes

• Trading window closed July 1, 2026 to July 31, 2026 (48 hours post-results).

AGM Details

• 42nd AGM via Video Conferencing / OAVM on 29 July 2026 at 4:00 PM IST.

Financial highlights

• Revenue from operations: 46,819 million; up 11.8% YoY.
• PAT: 5,250 million; net margin 11.2%.
• EPS: 593.81; final dividend 110 per share.
• OCF: 4,926 million; 93.8% of PAT.
• Equity capital: 88 million; net worth 44,627 million; reserves 44,539 million.

Business profile & geography

• Single operating segment: Automation & Control Systems.
• India revenue: 31,306 million; exports: 15,513 million.
• Exports share: 33% of turnover; exports grew 5.1% YoY.
• Domestic market supported by Honeywell group; focus on infra and energy transition.

Capital structure & dividends

• No borrowings; debt-free balance sheet.
• Final dividend 110 per share; AGM approval required.
• Record date: 17 July 2026; payment likely 5 Aug 2026.
• Total equity: 88 million; net worth: 44,627 million; reserves 44,539 million.
• Cash & bank balances total ~38,058 million (5,647 cash, 32,411 bank balances).

Governance & leadership changes

• Board of seven directors; two independent directors.
• Pedro Garrote resigned on 5 Nov 2025; Jake Wasserman appointed same day.
• Ganesh Natarajan reappointed as Independent Director for 3 years from 8 Mar 2026.
• CFO Pulkit Goyal resigned 21 May 2026; Satish Agarwal appointed from 1 Jun 2026.
• Statutory auditors: Walker Chandiok; Cost auditors: CS Adawadkar; Secretarial: JB Bhave.

Related party transactions & MRPT

• MRPTs with HII up to 9,500 million; HMIL up to 7,700 million.
• All MRPTs to be arm’s-length; require shareholder approvals.
• FY2025-26 MRPTs: HII sale 4,077; purchases 2,082.
• HMIL MRPTs: purchases 5,018; sales recorded as nil.

CSR & ESG

• CSR spend: 122.41 million; total CSR spend 129.68 million.
• 2% of avg net profit required: 130 million.
• Projects: IIT-Bombay COE, Future Skills Edge, Holistic Rural Development, Plant the Future.
• CSR Committee: Atul Pai (Chair), Neera Saggi, Ashish Modi; 2 meetings in FY25-26.
• MMJC provided independent BRSR assessment.

Audit, risk & internal controls

• Revenue recognition for turnkey contracts is a key audit matter.
• Internal controls robust; no material weaknesses reported.
• Forex hedging via forward contracts; FX risk managed.
• No significant regulatory penalties or penalties for non-compliance reported.

Overview

• Standalone reporting boundary for Honeywell Automation India Limited for FY2025-26.
• Main activities: manufacturing automation systems, sensing equipment trading, and installation/maintenance services.

Key ESG Risks & Opportunities

• Carbon neutrality and energy transition: target to achieve carbon neutrality across facilities by 2035.
• Health and safety: mitigated via ISO 45001-based HSEMS with hazard assessments and training.
• Data privacy and cybersecurity: governed by a global framework with privacy-by-design and audits.
• CSR: initiatives in education, mentoring, reforestation, healthcare, and infrastructure.
• Diversity and inclusion: strong employee networks support an inclusive culture.
• Supply chain management: Supplier Code, monitoring and audits to mitigate risks.
• Climate change opportunities: growth from sustainability offerings and energy-efficient technologies.
• Climate change risks: addressed via ERM, supplier resilience, and business continuity planning.

Governance & Policy Highlights

• MD is the highest ESG decision-maker; Audit, Risk Management, and CSR committees oversee ESG matters.
• Policies include anti-bribery, whistleblower, human rights, Supplier Code, ISO standards.
• Independent assurance provided by MMJC Consultancy LLP on BRSR Core indicators.
• Compliance event: INR 18,000 penalty for Krishnagiri construction-site safety violation.
• Board-approved mandatory policies with annexed policy web links.

Social Responsibility & Workforce

• Total employees: 7,385; permanent 3,119 and workers 193.
• Female representation: ~12.4% of total staff; board female 16.7%; KMP female 33.3%.
• Turnover: permanent employees about 9.3%; permanent workers about 4.0%.
• All employees have health and accident insurance; maternity and paternity benefits provided.
• Daycare facilities not provided due to hybrid working arrangements.
• Well-being spend: 0.34% of revenue.
• LTIFR for employees: 0.31; total injuries: 2; fatalities: 0.
• Grievance mechanisms include open-door policy and Access Integrity helpline; POSH ICC in place.
• Training coverage: 100% for health/safety and skill upgrades; annual performance appraisal.

Environmental Performance

• Total energy use: 31,675 GJ; renewables 12,677.73 GJ; non-renewables 18,997.51 GJ.
• Energy intensity PPP: 13.28; per turnover: 0.0000006765.
• Scope 1 emissions: 200 tCO2e; Scope 2 emissions: 3,374 tCO2e.
• Waste generated: 239.72 tonnes; 238.42 tonnes recycled.
• Zero Liquid Discharge achieved via on-site treatment; EPR for plastics, e-waste, and batteries.
• Water withdrawal: 30,585 kl; groundwater 9,939 kl; third-party water 1,118 kl.
• Water discharge: nil; water intensity PPP: 13.28.

Stakeholder Engagement & Complaints

• Stakeholders include employees, shareholders, customers, suppliers, communities, and regulators.
• Engagement channels: email, intranet, surveys, townhalls, and AGM communications.
• Engagement frequency: biannual surveys and quarterly townhalls.
• Complaints: 16 from shareholders, 10 from employees/workers, 1 from customers, 4 from value chain partners, 6 others.
• POSH complaint filed and resolved; multiple channels (Access Integrity helpline) used for grievances.

Other Notable Metrics

• 100% of inputs sourced sustainably via supplier due diligence; 60% of value chain partners assessed for health and safety.
• LCAs not conducted at company level; Honeywell conducts LCAs on select offerings.
• No product recalls; no data breaches; data privacy policy in place with a trust center.
• CSR beneficiaries include IIT Bombay Centre of Excellence (364), Honeywell Future Skills Edge (864), Holistic Rural Development (4,000).
• Designated EPR programs for plastics, e-waste, and batteries; CPCB compliance maintained.