Honda India Power Products profit drops 20% on labour code charges
Revenue climbed 9% to ₹865.5 crore, but a one-time ₹9.99 crore hit from new labour codes dragged annual net profit down to ₹64.2 crore.
— 3 earlier stories on Honda India Power Products Ltd. →What's new
- Annual revenue rose 9% to ₹865.5 crore on stronger domestic and export demand.
- Net profit fell 20% to ₹64.2 crore after a ₹9.99 crore exceptional charge.
- Sameer Jain will replace retiring whole-time director Vinay Mittal in September.
Why this matters
The company managed top-line growth, but the bottom line suffered from a non-recurring regulatory cost. Investors are getting a total dividend of ₹26.50 per share, which provides a cushion despite the earnings contraction.
What we're watching
- Whether the labour code impact recurs in the next fiscal year.
- The transition of leadership as Sameer Jain takes the helm in September.
- If domestic and export sales momentum continues into FY27.
The full read
Honda India Power Products grew its annual revenue by 9% to ₹865.5 crore for the year ended March, buoyed by domestic and export sales. Despite this top-line expansion, net profit slipped 20% to ₹64.2 crore.
Regulatory costs bit hard.
The primary drag was a ₹9.99 crore exceptional charge linked to the implementation of new labour codes, which effectively wiped out a significant portion of the company's annual earnings potential. The board responded to shareholders with a final dividend of ₹23 a share, pushing the total annual payout to ₹26.50, while leadership is also shifting, with Sameer Jain set to replace retiring whole-time director Vinay Mittal in September. The company is balancing a regulatory-driven earnings hit with a steady dividend policy, but the next test is whether the core business can maintain its 9% growth trajectory without further one-time charges.
Questions answered
- What caused the 20% decline 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 much dividend will shareholders receive?
- 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 has been appointed as the new whole-time director, effective September 2026, succeeding the retiring Vinay Mittal.
- Did the company grow its revenue?
- Yes, annual revenue grew 9% to ₹865.5 crore, supported by growth in both domestic and export markets.
Story so far
All notes on HONDAPOWER →- 26 May 2026 · 7:17 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