Johnson Controls–Hitachi AC India Reports Sharp Q2 Loss

Johnson Controls-Hitachi Reports Wider Quarterly Loss Amid Seasonal Weakness

India: Johnson Controls-Hitachi Air Conditioning India Ltd. reported a larger loss in the second quarter of FY26, with its net result declining to INR 399.6 million (USD 4.79 million / EUR 4.54 million) compared with a loss of INR 300.5 million (USD 3.38 million/ EUR 2.95 million) in the same period last year. The company recorded modest growth in quarterly revenue, but demand softened sharply during the monsoon season, contributing to a significant drop in operating performance. Operating profit declined further into negative territory, and margins weakened due to fixed cost pressures, higher employee expenses and limited flexibility in adjusting operating structures during low-demand periods.

Despite maintaining a net cash position and having delivered stronger full-year results in FY25, the company’s quarterly results continue to reflect the industry’s seasonal fluctuations. Revenue contracted sharply compared with the previous quarter, and fixed costs, including depreciation and interest, added to overall losses. The wider industry remains cyclical, with demand concentrated in the summer months and subdued activity during the rest of the year. Johnson Controls-Hitachi’s long-term sales growth remains positive, although profitability continues to exhibit volatility linked to both market conditions and operational constraints.

Source: Markets Mojo