Hindustan Aeronautics Limited (HAL)

Capital Goods · Aerospace & Defense · NSE · Updated 15 July 2026

₹4,420.5 ↓ 9.73% (1Y)

🎯 Key Takeaways

Hindustan Aeronautics Limited (HAL) is in a mature cash cow phase with cyclical growth patterns, currently navigating a downturn in recent quarterly performance after a peak in Q4FY24. The company maintains strong profitability historically but has seen declining revenue and margins in FY25 quarters, reflecting sector-specific headwinds and execution challenges in sustaining prior momentum.
Revenue grew 16.4% QoQ to ₹6,957 in Q3FY25.
⚠️ Sustained margin compression in aerospace programs due to delayed order realization or cost overruns.

Market Cap

₹2.93 L Cr

P/E Ratio

33.7

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Hindustan Aeronautics Limited (HAL) is in a mature cash cow phase with cyclical growth patterns, currently navigating a downturn in recent quarterly performance after a peak in Q4FY24. The company maintains strong profitability historically but has seen declining revenue and margins in FY25 quarters, reflecting sector-specific headwinds and execution challenges in sustaining prior momentum.

📰 What's Happening

In Q4FY26, HAL announced a board-approved final dividend of Rs 5 per share for FY25-26, contingent on shareholder approval at the upcoming AGM, with payment scheduled within 30 days of approval and a record date set for August 14, 2026. The board also appointed Murthy & Co. LLP as the cost auditor for FY26-27, signaling continued compliance rigor. Management will host a Q4FY26 earnings call on May 15, 2026, hosted by Ambit Capital, to discuss results and engage with investors.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	12,495	3,915	5,636	6,061	14,769	4,348	5,976	6,957
Operating Profit	3,968	1,287	1,997	1,895	6,459	1,727	2,188	2,314
OPM %	26.0%	22.4%	27.1%	23.7%	40.0%	22.8%	27.4%	24.2%
Net Profit	2,831	814	1,237	1,262	4,309	1,437	1,510	1,440
EPS	₹84.67	₹24.35	₹18.49	₹18.86	₹64.43	₹21.49	₹22.59	₹21.53

HAL's quarterly revenue peaked at ₹14,769 crore in Q4FY24 but has declined steadily to ₹6,957 crore in Q3FY25, indicating a clear downward trajectory in order execution or delivery cycles. Operating margins have also contracted from a high of 40% in Q4FY24 to 24.2% in Q3FY25, suggesting margin pressure likely due to mix shifts or cost escalations. Net profit and EPS have followed suit, falling from ₹4,309 crore and ₹64.43 in Q4FY24 to ₹1,440 crore and ₹21.53 in Q3FY25, reflecting the impact of reduced volume or pricing pressures in the current cycle.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance in the available filings, but the scheduled Q4FY26 earnings call on May 15, 2026, will be the primary platform for updates. The recurring focus on dividend policy and audit appointments suggests a continued emphasis on shareholder returns and regulatory compliance, though no growth targets or capex plans were disclosed in the recent corporate actions.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Aerospace & Defense

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Bharat Electronics Limited	3.10 L Cr	62.0	—	—	—
Hindustan Aeronautics Limited	2.93 L Cr	33.7	—	—	—
Bharat Dynamics Limited	48,584	83.8	—	—	—
Garden Reach Shipbuilders & Engineers Limited	30,768	41.1	—	—	—
Data Patterns (India) Limited	21,702	80.0	—	—	—
Zen Technologies Limited	14,039	62.0	—	—	—
Aequs Limited	13,582	—	—	—	—
Apollo Micro Systems Limited	10,524	111.6	18.2%	14.7%	0.54
Astra Microwave Products Limited	10,507	78.2	—	—	—
AXISCADES Technologies Limited	8,751	163.2	—	—	—

🔗 Peer Stock Analyses

BEL BDL GRSE DATAPATTNS ZENTEC

⚠️ Risk Factors

1. Sustained margin compression in aerospace programs due to delayed order realization or cost overruns. 2. Execution risk in translating order backlog into delivered revenue, particularly in defense contracts with long cycles. 3. Cyclical nature of defense procurement posing volatility in quarterly performance. 4. Macroeconomic sensitivity in key markets affecting future order pipelines.

📋 Recent Filings

🧠 Analyst's Read

HAL's current trajectory reflects a cyclical downturn following a peak period, with management focused on dividend continuity and compliance rather than growth acceleration. Investors should monitor the upcoming earnings call for clarity on order pipeline health, margin recovery expectations, and any commentary on defense procurement timelines to assess inflection points in the cycle.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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