What caused the 20% decline in net profit?

Profit fell to ₹64.2 crore primarily due to a one-time exceptional charge of ₹9.99 crore related to the implementation of new labour codes.

How much is the total dividend 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 starting in September, succeeding the retiring Vinay Mittal.

Did the company see any growth during the year?

Yes, annual revenue increased by 9% to ₹865.5 crore, supported by higher sales in both domestic and export markets.

Earnings · Engineering · Small cap

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 net profit down to ₹64.2 crore.

— 4 earlier stories on Honda India Power Products Ltd. →

HONDAPOWER 27 May 2026 · 11:40 AM IST Verify on BSE · NSE

Mkt cap₹2,206 cr

P/E30.03×

ROE9.26%

Debt / eq.0.00

Div yld1.40%

₹64.2 cr Annual net profit for FY2026, down 20% year-on-year.

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 despite a difficult regulatory cost environment. The dividend payout remains generous, signaling that management views the labour-code charge as a non-recurring event.

What we're watching

Whether the new labour code costs will recur.
The impact of the leadership transition on domestic sales strategy.
Sustainability of export growth momentum in the coming quarters.

The full read

Honda India Power Products closed the year with ₹865.5 crore in revenue, a 9% increase driven by domestic and export demand. However, the bottom line did not keep pace. Net profit slipped 20% to ₹64.2 crore, held back by a ₹9.99 crore exceptional charge linked to new labour codes. Despite the earnings dip, the board maintained shareholder returns by recommending a final dividend of ₹23 per share, pushing the total annual payout to ₹26.50. The company also confirmed a leadership change, with Sameer Jain set to replace retiring whole-time director Vinay Mittal this September. The results show a company balancing steady market expansion against one-off regulatory costs. The dividend suggests management is confident that the labour-related expense is a temporary hurdle rather than a structural shift in operating costs.

Questions answered

What caused the 20% decline in net profit?: Profit fell to ₹64.2 crore primarily due to a one-time exceptional charge of ₹9.99 crore related to the implementation of new labour codes.
How much is the total dividend 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 starting in September, succeeding the retiring Vinay Mittal.
Did the company see any growth during the year?: Yes, annual revenue increased by 9% to ₹865.5 crore, supported by higher sales in both domestic and export markets.

Mentioned: Honda India Power Products · Sameer Jain · Vinay Mittal

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

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27 May 2026 · 11:40 AM 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
1d ago Honda India Power Products profit drops 20% on labour code charges
1d ago Honda India Power Products profit drops 20% on labour code charges