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Mon, 06 Jul 2026
08:34:46 pm
Mon, 06 Jul 2026
08:34:46 pm
Rudransh Sangwan
Published at: May 22, 2026, 7:00 AM
Synopsis
HAL reported FY26 revenue of ₹33,088 crore and net profit of ₹9,115 crore as its order book surged to ₹2.54 lakh crore. Despite strong defence growth prospects and Tejas Mk1A delivery plans, brokerages remained divided on the stock outlook amid execution concerns, margin pressure, and large capex plans.
Hindustan Aeronautics Limited (HAL) reported strong FY26 financial performance with consolidated revenue crossing ₹33,000 crore and net profit rising above ₹9,100 crore. Despite robust order inflows and a massive defence order book, the stock has remained volatile as global brokerages remain divided on the company’s execution outlook and future growth trajectory.
The defence PSU continues to attract strong investor attention because of its strategic role in India’s aerospace and defence manufacturing ecosystem, including the LCA Tejas, helicopter programs, engine manufacturing, and Make-in-India defence initiatives.
Following the FY26 results, brokerages issued mixed recommendations ranging from aggressive Buy calls to cautious Sell ratings due to concerns around execution timelines, Tejas aircraft deliveries, and margin sustainability.
HAL reported healthy revenue growth and improved profitability during FY26 driven by strong order execution, engine deliveries, helicopter programs, and defence manufacturing operations.
| Metric | FY26 | FY25 |
|---|---|---|
| Revenue From Operations | ₹33,088.82 Crore | ₹30,981.05 Crore |
| Net Profit | ₹9,115.52 Crore | ₹8,364.05 Crore |
| Total Income | ₹36,787.95 Crore | - |
| Basic EPS | ₹136.30 | - |
On a standalone basis, HAL reported revenue from operations of ₹33,089.79 crore and standalone net profit of ₹9,075.67 crore during FY26.
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The company delivered strong Q4 earnings and outperformed analyst expectations on profitability.
| Metric | Q4 FY26 | Q4 FY25 |
|---|---|---|
| Revenue | ₹13,942.40 Crore | ₹13,700 Crore |
| Net Profit | ₹4,196.04 Crore | ₹3,980 Crore |
| EBITDA | ₹5,058 Crore | ₹5,300 Crore |
| EBITDA Margin | 36.28% | 38.65% |
HAL’s Q4 PAT exceeded analyst expectations despite some moderation in EBITDA margins during the quarter.
One of the biggest highlights for HAL during FY26 was the sharp improvement in its order book position.
| Parameter | Details |
|---|---|
| Total Order Book | ₹2,54,538 Crore |
| Previous Order Book | ₹1,89,302 Crore |
| Fresh Orders Received in FY26 | ₹97,028 Crore |
The massive order pipeline continues to provide long-term revenue visibility for the company across defence aircraft, helicopters, engines, and aerospace manufacturing programs.
Management guided for continued double-digit growth during FY27 while maintaining healthy operating margins.
| Parameter | Guidance |
|---|---|
| Revenue Growth | 10% - 12% |
| EBITDA Margin | 30% - 31% |
The company also reiterated strong execution focus across ongoing defence manufacturing programs.
HAL provided major updates regarding the LCA Tejas Mark-1A and future aerospace projects during the earnings call.
| Project | Timeline / Target |
|---|---|
| Tejas Mk1A Deliveries Begin | August-September 2026 |
| Aircraft Deliveries Planned in FY27 | ~20 Aircraft |
| Tejas Mk-II Prototype Rollout | By March 2027 |
| Planned Capex by 2030 | ₹12,000 Crore |
The company plans to invest heavily in manufacturing infrastructure for:
Global brokerages issued mixed ratings after HAL’s Q4 FY26 results, reflecting differing views on execution timelines and valuation potential.
| Brokerage | Rating | Target Price |
|---|---|---|
| Nomura | Buy | ₹5,954 |
| Goldman Sachs | Neutral | ₹5,225 |
| CLSA | Outperform | ₹5,265 |
| UBS | Sell | ₹3,200 |
| Jefferies | Buy | ₹6,300 |
HAL continues to maintain a strong balance sheet supported by rising cash reserves and healthy profitability.
| Parameter | Details |
|---|---|
| Consolidated Net Worth | ₹41,04,460 Lakh |
| Paid-Up Equity Share Capital | ₹33,439 Lakh |
| Cash Pile Growth | 21% YoY |
| Estimated Cash Reserves | US$4.9 Billion |
The company’s strong cash generation continues supporting future defence and aerospace expansion plans.
HAL stock has witnessed pressure over the last one year despite strong long-term defence sector optimism.
| Period | Return |
|---|---|
| 1 Day | +0.67% |
| 5 Days | -4.56% |
| 1 Month | +0.91% |
| 6 Months | -4.29% |
| 1 Year | -12.06% |
HAL remains one of India’s most strategically important defence manufacturing companies with long-term growth visibility supported by:
While execution timelines and margin pressures remain key investor concerns, the company’s massive order pipeline and upcoming Tejas deliveries could remain major catalysts for the stock over the coming years.
Hindustan Aeronautics Limited (HAL) reported FY26 consolidated revenue from operations of ₹33,088.82 crore.
HAL posted a consolidated net profit of ₹9,115.52 crore for FY26.
HAL reported Q4 FY26 consolidated net profit of ₹4,196.04 crore, beating several analyst estimates.
HAL’s order book increased to ₹2,54,538 crore as of FY26.
Management guided for 10% to 12% revenue growth in FY27.
HAL expects FY27 EBITDA margins to remain around 30% to 31%.
The company expects LCA Tejas Mk1A deliveries to begin by August or September 2026.
HAL plans to deliver around 20 Tejas aircraft during the financial year.
HAL plans to invest around ₹12,000 crore by 2030 to strengthen manufacturing infrastructure and defence production capabilities.
Brokerages are split because of:
Brokerages including Nomura, Jefferies, and CLSA maintained positive ratings on HAL after FY26 results.
UBS maintained a Sell rating citing execution concerns and margin pressure.
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