Honeywell Automation India shares hit Rs 38,695 on Thursday, holding sharp gains after last week’s strong June quarter results.

Here’s the background. The company reported its Q1 FY27 numbers on July 29, and the stock jumped over 10% that day, touching an intraday high of Rs 41,495.

What drove that move wasn’t revenue, which grew a modest 1.8% to Rs 1,204 crore and came in below what analysts expected. It was margins.

EBITDA rose nearly 22% to Rs 172.5 crore, and the EBITDA margin expanded to 14.3% from 12% a year earlier, well ahead of Street estimates.

Net profit for the quarter came in at Rs 150.7 crore, up 20.9% from Rs 124.6 crore a year ago, broadly matching what analysts had projected.

Profit before tax rose by the same percentage to Rs 203.1 crore, while earnings per share improved to Rs 170.45 from Rs 140.95.

The margin improvement came largely from lower raw material costs, which fell to Rs 584.9 crore from Rs 666.3 crore, even as employee costs and other expenses ticked up slightly.

Honeywell Automation operates as a single business, focused entirely on Automation and Control Systems, and doesn’t have any subsidiaries.

With the results now more than a week behind it, the stock has held on to most of its gains and is up about 20% for the year so far, having turned positive on a one-year basis as well.

Honeywell Automation shares closed at Rs 38,315 on the NSE on Thursday, down 0.16% for the day.

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