Honda India Q2 FY27 Results (NSE: HONDAPOWER)
Signal: Slipped to loss
The read
The operating trajectory inflected positively in Q2FY27: revenue accelerated to ₹25,621 lakh, +45.9% YoY, and operating EBITDA margin rose to 11.35% from 6.45%, while the ₹3,615 lakh CERP charge temporarily obscured the recovery by driving PAT to a ₹406 lakh loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹256.21 Cr | +45.90% | +35.41% |
| EBIT | ₹21.69 Cr | +285.94% | |
| Net profit | ₹-4.06 Cr | -136.84% | |
| EPS | ₹-4 | -136.33% | |
| EBIT margin | 11.35% |
P&L walk
Standalone revenue accelerated to ₹25,621 lakh, +45.9% YoY and +35.4% QoQ, while operating EBITDA margin expanded to 11.35%; the ₹3,615 lakh CERP charge converted ₹3,091 lakh pre-exceptional profit into a ₹406 lakh loss.
Key positives
- Revenue reached ₹25,621 lakh, +45.90% YoY and +35.41% QoQ, reversing the prior-quarter revenue decline recorded in the company context.
- Operating EBITDA margin expanded to 11.35% from 6.45% YoY, with revenue growth of 45.90% outpacing employee-cost growth of 15.64%.
- Gross margin expanded 154bps YoY to 43.79% as material-related costs declined to 56.21% of revenue from 57.75%; the filing does not disclose the precise driver.
- H1 operating cash flow turned positive at ₹1,707 lakh versus ₹3,180 lakh used in H1FY26.
Key concerns
- The ₹3,615 lakh CERP expense drove PAT from ₹1,102 lakh profit a year ago to a ₹406 lakh loss and reduced H1 PAT to ₹644 lakh, down 68.72% YoY.
- Other operating expenses increased 53.65% YoY to ₹4,207 lakh, faster than revenue despite the overall operating-margin improvement.
- The filing does not disclose volume, realisation or capacity-utilisation data, limiting assessment of whether the 45.90% revenue growth is volume- or mix-led.
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