Financial Risk Management (Tables)

12 Months Ended

Mar. 31, 2026

Analysis of the Age of Receivables from Financial Services that are Past Due

The analysis of the age of receivables from financial services that are past due as of March 31, 2025 and 2026 is as follows:


	Yen (millions)
As of March 31, 2025	Less than 30 days past due		30-59 days past due		60-89 days past due		90 days and greater past due		Total
Consumer finance receivables:
Retail	¥	378,755	¥	92,347	¥	23,455	¥	21,269	¥	515,826
Finance lease		1,921		265		21		614		2,821
Dealer finance receivables:
Wholesale		17,211		54		16		85		17,366

Total	¥	397,887	¥	92,666	¥	23,492	¥	21,968	¥	536,013


	Yen (millions)
As of March 31, 2026	Less than 30 days past due		30-59 days past due		60-89 days past due		90 days and greater past due		Total
Consumer finance receivables:
Retail	¥	462,863	¥	117,258	¥	30,069	¥	32,816	¥	643,006
Finance lease		2,043		298		53		598		2,992
Dealer finance receivables:
Wholesale		19,653		27		5		23		19,708

Total	¥	484,559	¥	117,583	¥	30,127	¥	33,437	¥	665,706

Summary of retail receivables included in consumer finance receivables

The balances of retail receivables included in consumer finance receivables as of March 31, 2025 and 2026 are as follows:


	Yen (millions)
	12-month ECL (Stage 1)		Lifetime ECL				Total
As of March 31, 2025	12-month ECL (Stage 1)		Not credit- impaired (Stage 2)		Credit- impaired (Stage 3)		Total
Consumer finance receivables:
Retail*	¥	7,060,827	¥	932,769	¥	40,908	¥	8,034,504

	Yen (millions)
	12-month ECL (Stage 1)		Lifetime ECL				Total
As of March 31, 2026	12-month ECL (Stage 1)		Not credit- impaired (Stage 2)		Credit- impaired (Stage 3)		Total
Consumer finance receivables:
Retail*	¥	7,947,857	¥	897,300	¥	58,696	¥	8,903,853

Explanatory note:

*	The tables above represent the gross amounts of retail receivables by stages of ECL model since the expected credit losses are measured collectively by our finance subsidiaries and the balances of those receivables are not directly allocated to the risk ratings.

Dealer Finance Receivables and Undiscounted Maximum Amounts of Potential Payment for Loan Commitments

The balances of dealer finance receivables and the undiscounted maximum amounts of potential payment for loan commitments by this risk rating as of March 31, 2025 and 2026 are as follows:


	Yen (millions)
	12-month ECL (Stage 1)		Lifetime ECL				Total
As of March 31, 2025	12-month ECL (Stage 1)		Not credit-impaired (Stage 2)		Credit-impaired (Stage 3)		Total
Dealer finance receivables:
Group A	¥	522,368	¥	1,866	¥	5,029	¥	529,263
Group B		215,160		1,617		26		216,803

Total	¥	737,528	¥	3,483	¥	5,055	¥	746,066

Loan commitments:
Group A	¥	107,073	¥	—	¥	—	¥	107,073
Group B		20,275		—		—		20,275

Total	¥	127,348	¥	—	¥	—	¥	127,348


	Yen (millions)
	12-month ECL (Stage 1)		Lifetime ECL				Total
As of March 31, 2026	12-month ECL (Stage 1)		Not credit-impaired (Stage 2)		Credit-impaired (Stage 3)		Total
Dealer finance receivables:
Group A	¥	574,524	¥	3	¥	5,403	¥	579,930
Group B		273,323		2,545		—		275,868

Total	¥	847,847	¥	2,548	¥	5,403	¥	855,798

Loan commitments:
Group A	¥	137,015	¥	—	¥	—	¥	137,015
Group B		21,353		—		—		21,353

Total	¥	158,368	¥	—	¥	—	¥	158,368

The undiscounted maximum amount of potential payment for guarantees for bank loans of a certain affiliate as of March 31, 2026 is

¥46,848 million.

Non-derivative Financial Liabilities by Maturity

Non-derivative

financial liabilities by maturity as of March 31, 2025 and 2026 are as follows:


	Yen (millions)
As of March 31, 2025	Carrying amount		Within 1 year		Between 1 and 5 years		Later than 5 years		Total contractual cash flows
Trade payables	¥	1,663,487	¥	1,663,487	¥	—	¥	—	¥	1,663,487
Financing liabilities		11,451,267		4,819,178		6,331,191		1,245,640		12,396,009
Accrued expenses		728,935		728,935		—		—		728,935
Other financial liabilities		406,670		115,587		115,839		215,609		447,035

Total	¥	14,250,359	¥	7,327,187	¥	6,447,030	¥	1,461,249	¥	15,235,466


	Yen (millions)
As of March 31, 2026	Carrying amount		Within 1 year		Between 1 and 5 years		Later than 5 years		Total contractual cash flows
Trade payables	¥	1,781,598	¥	1,781,598	¥	—	¥	—	¥	1,781,598
Financing liabilities		13,479,863		5,340,953		7,782,146		1,544,182		14,667,281
Accrued expenses		996,653		996,653		—		—		996,653
Other financial liabilities		458,619		166,935		128,809		209,806		505,550

Total	¥	16,716,733	¥	8,286,139	¥	7,910,955	¥	1,753,988	¥	17,951,082

Summary of Lease liabilities by maturity

Other financial liabilities include lease liabilities. Lease liabilities by maturity as of March 31, 2025 and 2026 are as follows:


	Yen (millions)
As of March 31, 2025	Carrying amount		Within 1 year		Between 1 and 5 years		Later than 5 years		Total contractual cash flows
Lease liabilities	¥	322,923	¥	72,062	¥	103,245	¥	188,046	¥	363,353

	Yen (millions)
As of March 31, 2026	Carrying amount		Within 1 year		Between 1 and 5 years		Later than 5 years		Total contractual cash flows
Lease liabilities	¥	326,944	¥	78,181	¥	117,186	¥	178,508	¥	373,875

Derivative Financial Liabilities by Maturity

Derivative financial liabilities by maturity as of March 31, 2025 and 2026 are as follows:


	Yen (millions)
As of March 31, 2025	Within 1 year		Between 1 and 5 years		Later than 5 years		Total contractual cash flows
Derivative financial liabilities	¥	69,252	¥	138,665	¥	7,443	¥	215,360

	Yen (millions)
As of March 31, 2026	Within 1 year		Between 1 and 5 years		Later than 5 years		Total contractual cash flows
Derivative financial liabilities	¥	60,326	¥	69,100	¥	2,729	¥	132,155

Hedge accounting items designated as hedging instruments

The amounts of items designated as hedging instruments as of the year ended March 31, 2026 are as follows:

As of March 31, 2026

Notional

Carrying
amount –
assets

Yen (millions)

Carrying
amount –
liabilities

Yen (millions)

Line item in the
statements of financial
position where hedging
instruments are included

Average rate

Cash flow hedges:

Currency and interest risk:

Currency swaps

US$

3,000 million

64,541

—

Other financial assets

(Current /Non-current

)

144.89/$

Receive: 4.85

Pay: 1.71

Explanatory note:

*1	The maximum term over which the Company hedges changes in cash flows due to risks of fluctuation in foreign exchange rates and interest rates are approximately 10 years.

*2	In the year ended March 31, 2026, no material hedge ineffectiveness was recognized.

Hedge accounting balance of the cash flow hedge reserve

The balance of the cash flow hedge reserve (net of tax) related to continuing hedges as of the year ended March 31, 2026 is as follows:

There are no balances remaining in the cash flow hedge reserve from any hedging relationships for which hedge accounting is no longer applied during the year ended March 31, 2026.


As of March 31, 2026	Balance of the cash flow hedge reserve Yen (millions)		Amounts of gain (loss) recognized in other comprehensive income Yen (millions)		Amounts reclassified to profit or loss Yen (millions)			Line item in which reclassification adjustment is included
Cash flow hedges:
Currency and interest risk:
Currency swaps	¥	11,021	¥	52,471	¥	(41,450	)		Finance income and finance costs (Interest expense / Other, net	)

Currency risk [member]

Statement [LineItems]

Market Risk Sensitivity Analysis

The following scenario demonstrates the impact of a 1% appreciation of the Japanese yen against the U.S. dollar on profit before income taxes, holding all variables other than the foreign currency exchange rate constant.


	Yen (millions)
	2025		2026
Impact on profit before income taxes	¥	(2,162)	¥	(2,046)

Interest rate risk [member]

Statement [LineItems]

Market Risk Sensitivity Analysis

The following scenario demonstrates the impact of a 100 basis point rise in interest rates on profit before income taxes, holding all variables other than interest rates constant.


	Yen (millions)
	2025		2026
Impact on profit before income taxes	¥	(22,118)	¥	(33,075)

Credit facility [member]

Statement [LineItems]

Unused Portions of Credit Facility

The unused portions of the credit facility of Honda’s commercial paper and medium-term note programs as of March 31, 2025 and 2026 are as follows:


	Yen (millions)
	2025		2026
Commercial paper	¥	711,885	¥	1,617,134
Medium-term notes		2,381,972		6,180,379

Total	¥	3,093,857	¥	7,797,513

Committed lines of credit [member]

Statement [LineItems]

Unused Portions of Credit Facility

The unused portions of the committed lines of credit extended by financial institutions to Honda as of March 31, 2025 and 2026 are as follows:


	Yen (millions)
	2025		2026
Commercial paper programs	¥	1,433,976	¥	1,769,851
Other		72,482		423,804

Total	¥	1,506,458	¥	2,193,655