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 much dividend will shareholders receive?

The board recommended a final dividend of ₹23 per share. This brings the total dividend payout for the year to ₹26.50 per share.

Who is the new whole-time director?

Sameer Jain has been appointed as the new whole-time director. He will take over from Vinay Mittal, who is retiring, effective September 2026.

Did the company see any growth in its core business?

Yes, annual revenue grew 9% to reach ₹865.5 crore. The company attributed this performance to higher domestic and export sales.

Earnings · Engineering · Small cap

Honda India Power Products profit drops 20% on labour code costs

Revenue climbed 9% to ₹865.5 crore, but a one-time charge hit the bottom line. The board declared a total dividend of ₹26.50 per share.

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

HONDAPOWER 26 May 2026 · 7:27 PM IST Verify on BSE · NSE

Mkt cap₹2,294 cr

P/E31.23×

ROE9.26%

Debt / eq.0.00

Div yld1.41%

₹64.2 cr Annual net profit for the year ended March.

What's new

Annual revenue rose 9% to ₹865.5 crore on stronger domestic and export sales.
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 profit decline is entirely attributable to the one-time labour code implementation cost. Excluding that charge, the underlying business performance remains steady. Investors should note the company's commitment to shareholder returns via a total dividend of ₹26.50 per share.

What we're watching

Whether the new labour code costs recur in the next 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 top line by 9% to ₹865.5 crore for the year ended March, buoyed by domestic and export demand. However, the bottom line took a hit, with net profit falling 20% to ₹64.2 crore.

Regulatory friction hurt.

A ₹9.99 crore exceptional charge linked to the implementation of new labour codes wiped out a significant portion of the annual earnings. Despite the lower profit, the board maintained a shareholder-friendly stance by recommending a final dividend of ₹23 per share, pushing the total annual payout to ₹26.50. Leadership is also shifting, with Sameer Jain set to replace retiring whole-time director Vinay Mittal this September. The core business is expanding, but the one-time regulatory cost has obscured the underlying margin profile for this fiscal year.

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 much dividend will shareholders receive?: The board recommended a final dividend of ₹23 per share. This brings the total dividend payout for the year to ₹26.50 per share.
Who is the new whole-time director?: Sameer Jain has been appointed as the new whole-time director. He will take over from Vinay Mittal, who is retiring, effective September 2026.
Did the company see any growth in its core business?: Yes, annual revenue grew 9% to reach ₹865.5 crore. The company attributed this performance to higher domestic and export sales.

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

Primary source BSE · NSE

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

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26 May 2026 · 7:27 PM IST 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
today Honda India Power Products profit drops 20% on labour code charges