Shares of defence major Hindustan Aeronautics Ltd (HAL) gained 2.5 percent in trade on Wednesday, August 13, after HAL posted its earnings results for the June quarter.
Hindustan Aeronautics reported a 3.7 percent year-on-year drop in consolidated net profit to Rs 1,383.8 crore for Q1FY26, while revenue from operations rose 10.8 percent to Rs 4,819 crore.
HAL’s Q1FY26 revenue growth was supported by execution of its Rs 1.89 lakh crore order book and higher repairs and overhaul contribution. EBITDA rose nearly 30 percent year-on-year to Rs 1,284 crore, with margins expanding to 26.7 percent from 22.8 percent a year ago, against expectations that it would contract.
At 9.20 am, HAL's stock rose by 2.5 percent to trade at Rs 4,520 per share on the NSE.
HAL’s PAT fell 4 percent, but came in 10 percent above Motilal Oswal’s estimate of Rs 1,260 crore, aided by stronger margins, lower depreciation, and higher other income.
"With engine supplies ramping up from GE for the Tejas Mk1A aircraft order, we expect aircraft deliveries to accelerate in the coming quarters. We also anticipate a strong manufacturing order book to support its execution growth," said Motilal Oswal. The brokerage reiterated its 'buy' tag, with a target price of Rs 5,800.
Nomura maintained its 'buy' rating on HAL with a target price of Rs 6,100, indicating a 38 percent upside, citing strong visibility from a manufacturing book-to-bill ratio of 24x, on-schedule or ahead-of-schedule project execution, minimal downside risk to estimates, and an expected PAT CAGR of 24 percent over FY25–28.
Nuvama Institutional Equities, too, reaffirmed its 'buy' tag on HAL with a target price of Rs 6,000, after Q1FY26 results beat estimates on strong execution, with OPM at 26.7 percent versus the Street’s 23 percent forecast. The company’s Rs 1.84 lakh crore order book (6.1x FY25 sales) and over Rs 4.6 lakh crore pipeline provide long-term visibility amid the IAF’s fighter jet shortfall.
Follow our live blog to catch all the market updates
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
