Hindustan Aeronautics Ltd. (HAL), the state-run defence company, on Thursday announced its financial results for the third quarter of the financial year 2025-26, posting a significant rise in net profit and revenue.
The Maharatna public sector undertaking (PSU) under the Ministry of Defence reported a net profit of Rs 1,866.68 crore for the quarter ended 31 December 2025, up 29.7 per cent from Rs 1,439.83 crore in the corresponding period of the previous fiscal year. Earnings per share (basic) increased to Rs 27.91 from Rs 21.53, marking a rise of 29.63 per cent.
HAL Revenue and Expenses
Revenue from operations for Q3 FY26 rose 10.65 per cent to Rs 7,698.80 crore, compared with Rs 6,957.31 crore in the year-ago period.
Total income for the quarter increased 13.5 per cent to Rs 8,612.60 crore from Rs 7,588.71 crore a year earlier. Total expenses stood at Rs 6,138.57 crore, registering an increase of 10.6 per cent from Rs 5,551.96 crore in the same quarter last fiscal.
HAL’s consolidated income from operations during the quarter rose 25.34 per cent to Rs 8,688.80 crore from Rs 6,932.31 crore a year ago, while total income increased 18.78 per cent to Rs 9,013.40 crore.
Total expenses rose 13.28 per cent to Rs 6,339.55 crore, and profit before tax was up 21.78 per cent at Rs 2,486.81 crore. Net profit for the period increased 29.65 per cent to Rs 1,866.66 crore from Rs 1,439.79 crore in the same period last year.
HAL Operational Performance
At the operational level, HAL’s earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 11.2 per cent to Rs 1,871 crore from Rs 1,683 crore in the year-ago period. EBITDA margin improved slightly by 10 basis points to 24.3 per cent from 24.2 per cent. Profit before tax rose 21.78 per cent to Rs 2,486.81 crore from Rs 2,042.18 crore in the corresponding quarter last year.
HAL Dividend and Record Date
The board of directors of HAL also approved the first interim dividend for FY26. Shareholders will receive Rs 35 per equity share of Rs 5 each fully paid up, translating into a 700 per cent dividend.
The record date for the interim dividend has been fixed as 18 February 2026, and the dividend will be paid to all eligible shareholders on or before 14 March 2026.
HAL Share Price Target
Earlier, analysts had mixed views on HAL. JP Morgan maintained an “Overweight” rating with a target of Rs 6,004, noting that HAL missing out on the AMCA bid is negative but expected, given the need for fast-track development and delays in LCA MK1A deliveries.
The broker highlighted HAL’s large order book, about seven times its annual revenue, and said valuations look attractive after the recent correction, with opportunities to win large orders beyond AMCA.
On the other hand, Morgan Stanley downgraded HAL to “Underweight” from “Equalweight” and cut its target to Rs 3,355 from Rs 5,092. The broker cited downside risks from rising private sector competition and slower execution due to import dependence, despite HAL outperforming the Nifty by 4% YTD. Morgan Stanley also lowered its EPS estimates by 2% and 5% for FY27 and FY28, respectively.
HAL Share Price History
HAL, which manufactures aircraft, helicopters, and jet engines, has seen its share price fluctuate in recent months. The stock has declined over 7 per cent in one month and 12 per cent in three months.
It fell 5 per cent over the past six months but recorded a gain of 16 per cent in one year. In a longer-term perspective, HAL shares have surged 247 per cent over three years and delivered multibagger returns of 713 per cent in five years.
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