HAL Q2 Results: Net profit up 10%; margin shrinks despite higher revenue

HAL Q2FY26 Results: Shares of Hindustan Aeronautics Ltd (HAL) slipped up to 3.3 per cent to Rs 4,701 on Wednesday following the company’s September-quarter results, which showed operating margins falling short of management guidance and most key metrics missing Zee Business Research estimates.

Defence PSU reported a 10 per cent year-on-year (YoY) rise in consolidated net profit for the July–September quarter of FY26.

The company’s profit after tax (PAT) came in at Rs 1,669.07 crore, up from Rs 1,510.48 crore in the same period last year. However, the figure was below Zee Business Research’s estimate of Rs 1,711 crore.

Revenue in line with projections

HAL’s consolidated revenue from operations rose 10.9 per cent YoY to Rs 6,628.61 crore, compared with Rs 5,976.29 crore a year ago. The topline was largely in sync with Zee Business Research’s forecast of Rs 6,613 crore.

Operational performance was softer than expected, with EBITDA at Rs 1,557.89 crore, below the projected Rs 1,796 crore. The EBITDA margin stood at 23.5 per cent, significantly lower than both 27.4 per cent a year ago and the estimated 27 per cent, impacted by higher provisioning and other expenses.

Analysts had earlier highlighted that margins could see a mild decline this quarter, given the uptick in costs and working capital requirements.

Market watchers now expect HAL’s management to share an update on the delivery schedule of the Tejas Mk1A aircraft, where progress remains slower than planned. Only about seven Tejas deliveries are expected by the end of FY26, according to research estimates.

Attention will also be on the GE engine delivery pipeline, with four units already supplied, and on developments related to the Su-30 avionics upgrade project.

Hindustan Aeronautics Ltd (HAL) shares have surged 14 per cent so far in 2025, maintaining strong momentum in the market. On the technical front, the stock continues to trade above all major simple moving averages (SMAs), from the 5-day to the 200-day, signalling sustained bullish sentiment among investors.