Honda India Power Products Limited (formerly known as Honda Siel Power Products Limited) was incorporated in September 1985 as a Joint Venture. Initially called Shriram Honda Power, it was promoted by Honda Motor Co., Japan, and Shriram Industrial Enterprises. In 1998-99, it changed its name to Honda Siel Power Products Limited and subsequently to Honda India Power Products Limited on May 24, 2020. Honda Motor, Japan, holds a significant 66.67% stake in the company.
The company is primarily engaged in manufacturing and marketing portable gensets, water pumps, general-purpose engines, lawn mowers, brush cutters, tillers, and marine engines. As a subsidiary of Honda Motor Co., Japan, it has established itself as a prominent player in India's power equipment sector, leveraging Honda's global expertise and technology to serve both domestic and international markets.
Honda India Power Products operates manufacturing facilities in Rudrapur (Uttaranchal), Pondicherry, and Greater Noida. The plant at Pondicherry commenced commercial production in September 1995. These strategically positioned manufacturing facilities across India optimize production efficiency and distribution networks.
The company offers a diverse range of products serving agricultural, industrial, and residential sectors. Its portfolio includes generators, general-purpose engines, water pumping sets, brush cutters, and tillers. Its range of brush cutters, for example, provides mechanized solutions for farm activities like de-weeding and harvesting, with fixed shaft, flexible shaft, and high-powered variants catering to frequent and professional users.
Honda India Power Products has consistently focused on innovation and product development. In FY 2024, the company launched a new product line of battery-operated handheld power equipment (DCHH). Additionally, new Honda Tillers were launched in 2021-22, and the transition from kerosene-powered products to petrol-fueled engines and water pumps was commissioned in FY 2021-22. Two new water pump models—a 2-inch high-head self-priming pump and a 3-inch high-discharge self-priming pump—were also introduced in FY 2021-22.
The company has also been proactive in localizing production to enhance cost competitiveness, localizing 80 generator model parts during 2012. This localization strategy has helped improve margins and reduce dependence on imports while maintaining Honda's stringent quality standards.
As of July 2025, Honda India Power Products has a market capitalization of ₹3,045 crore. The company has demonstrated mixed financial performance in recent years. For the full year ended March 2025, net profit declined 13.31% to ₹79.94 crore, while net sales decreased by 19.70% to ₹794.23 crore compared to the previous year.
However, the company showed a strong quarterly performance in Q4 FY25, with net profit rising 128.86% to ₹36.16 crore, up from ₹15.80 crore in the previous quarter (Q3 FY25). Revenue for Q4 FY25 also increased by 16.23% to ₹268.68 crore.
For the year ended March 31, 2025, the board recommended a dividend of ₹21.50 per share. The company has maintained a healthy dividend payout of 26.3%, reflecting management's commitment to returning value to shareholders despite challenging market conditions.
- Market Capitalization: ₹3,045 crore (as of July 2025)
- FY 2025 Revenue: ₹794.23 crore (down 19.70% YoY)
- FY 2025 Net Profit: ₹79.94 crore (down 13.31% YoY)
- Q4 FY25 Net Profit: ₹36.16 crore (up 128.86% QoQ)
- Q4 FY25 Revenue: ₹268.68 crore (up 16.23% QoQ)
- Dividend (FY25): ₹21.50 per share
- Dividend Payout Ratio: 26.3%
- Return on Equity (Last 3 years): 11.5%
- Current Stock P/E: 38.1
- Book Value: ₹851
- Dividend Yield: 0.58 %
- ROCE: 12.9 %
- ROE: 9.54 %
Honda India Power Products maintains a robust financial position, being almost debt-free. This strong balance sheet provides the company with significant financial flexibility and resilience, enabling it to report stable earnings growth across business cycles and navigate market downturns effectively. While the Return on Equity (ROE) of 11.5% over the last three years indicates room for improvement in capital efficiency, the company's debt-free status and strong cash position provide a solid foundation for future growth investments.
The company has delivered a subdued sales growth of -1.32% over the past five years. This reflects challenging market conditions in the power equipment sector, including intense competition from local manufacturers and fluctuating demand patterns across different segments.
The stock performance also indicates investor concerns about the company's growth trajectory and market positioning. Over the past six months, the share price has increased by 2.14%, but it has decreased by 21.61% over the last one year. The wide trading range, with a 52-week high of ₹4,494.00 and a 52-week low of ₹1,827.20, indicates significant volatility. Current metrics suggest the stock is trading at a premium valuation relative to its earnings and book value, implying investor expectations for future growth recovery.
Promoter holding in Honda India Power Products Ltd remained stable at 66.67% as of March 2025, reflecting Honda Motor Co. Japan's continued confidence in the Indian subsidiary's long-term prospects. B S R & Co LLP serves as the auditor for the company. The management team includes Shigeki Iwama as Chairman and Sunita Ganjoo as the Company Secretary.
Honda India Power Products represents a well-established player in India's power equipment industry, backed by the strong global presence and technology of its Japanese parent company. While facing near-term challenges in terms of revenue growth and market competition, the company's debt-free status, consistent dividend policy, and ongoing product innovation efforts position it for potential recovery as market conditions improve and its strategic initiatives gain traction.
