Honda India Power Products profit drops 20% on labour code charges
Revenue climbed 9% to ₹865.5 crore, but a one-time exceptional charge of ₹9.99 crore hit the bottom line. The board declared a total dividend of ₹26.50 per share.
— 3 earlier stories on Honda India Power Products Ltd. →What's new
- Revenue grew 9% to ₹865.5 crore on stronger domestic and export demand.
- Net profit fell to ₹64.2 crore after a ₹9.99 crore exceptional charge.
- Sameer Jain joins as whole-time director in September, replacing Vinay Mittal.
Why this matters
The exceptional charge masks the underlying growth in sales. The dividend payout remains steady despite the one-off labour code costs.
What we're watching
- Whether the labour code impact recurs in the coming fiscal year.
- The transition of leadership from Vinay Mittal to Sameer Jain.
- Sustained growth in export markets to offset domestic volatility.
The full read
Honda India Power Products grew its annual revenue by 9% to ₹865.5 crore for the year ended March. But the bottom line suffered. Net profit dropped 20% to ₹64.2 crore, dragged down by a ₹9.99 crore exceptional charge tied to new labour code implementations.
Despite the profit dip, the board maintained shareholder returns with a final dividend of ₹23 per share, resulting in a total annual payout of ₹26.50 per share. The company also confirmed a leadership change, with Sameer Jain set to replace the retiring Vinay Mittal as whole-time director this September.
The core business remains in growth mode. One-time labour costs are the only reason for the earnings miss. The dividend payout is the real signal of management's confidence in current cash flow.
Questions answered
- What caused the 20% drop in net profit?
- Profit fell to ₹64.2 crore primarily due to a ₹9.99 crore exceptional charge related to the implementation of new labour codes.
- How did the company perform on the top line?
- Revenue rose 9% to ₹865.5 crore for the year ended March, supported by both domestic and export sales.
- What is the total dividend payout for the year?
- The board recommended a final dividend of ₹23 per share, bringing the total annual payout to ₹26.50 per share.
- Who is the new whole-time director?
- Sameer Jain will take over as whole-time director effective September 2026, succeeding the retiring Vinay Mittal.
Story so far
All notes on HONDAPOWER →- 26 May 2026 · 7:08 PM IST Honda India Power Products profit drops 20% on labour code charges
- today Honda India Power Products profit drops 20% on labour code costs
- today Honda India Power Products profit drops 20% on labour code charges
- today Honda India Power Products profit drops 20% on labour code charges