Johnson Controls-Hitachi Air Conditioning shares fall 2% after Q1 profit drops 57%

Shares of Johnson Controls-Hitachi Air Conditioning fell up to 2% in early trade on Friday, in sync with the broader market, after the company reported weak earnings in the June quarter. The company, a joint venture between Johnson Controls (JCI) and Hitachi Appliances of Japan, has reported a 58% year-on-year (YoY) drop in its net profit, while its revenue from operations declined 14.4% compared to the same period last year.

Weighed down by the Q1 performance, Hitachi Air Conditioning shares dropped as much as 2% to ₹1,720.05 on the BSE. The stock opened at ₹1,731.10, down 1.4% against the previous closing price of ₹1,755.75.

At the time of reporting, shares of Hitachi Air Conditioning were trading 1% lower at ₹1,738.60, with a market capitalisation of ₹4,727.4 crore. Meanwhile, the BSE Sensex was down 590 points, or 0.7%, to 81,590, while the Nifty50 index slipped to 24,866, lower by 196 points or 0.78%.

The counter touched its 52-week low of ₹1,604.30 on February 28, 2025, and a 52-week high of ₹2,620.95 on October 17, 2024. The counter has fallen nearly 4% on a year-to-date (YTD) basis, while it has lost nearly 21% in the past one year.

In a post-market release on Thursday, Johnson Controls-Hitachi Air Conditioning reported a 57.81% drop in its net profit at ₹15.25 crore for the first quarter ended June 2025, compared to ₹36.15 crore in the same period last year.

Revenue from operations slid 14.4% to ₹852.6 crore compared to ₹996 crore in Q1 FY25. On the operating level, EBITDA declined 34.3% to ₹36.8 crore, while the margin dropped to 4.3% from 5.6% a year earlier.

Earlier this month, the company declared an interim dividend of ₹36 per equity share (360%) of ₹10 each for the year 2025-26. It had fixed July 9 as the record date for the purpose of determining eligible shareholders to receive the interim dividend, which was proposed to be paid on or before July 24, 2025.

Hitachi Air Conditioning has seen significant erosion of its market share, which halved in FY24. However, its market share has risen in FY25 with its follow-up performance, according to a report by YES Securities. However, there is still a very long way to go before the company regains its top 5 status in the Indian Room Air Conditioner (RAC) market, which it held four years ago with a market share of 12%, the report noted.

As per the report, Hitachi continues to remain a prominent player in the northern markets and expects better-than-industry growth in FY26. However, after-sales service continues to remain a drag on the business.

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