Hindustan Aeronautics Limited (HAL) on Wednesday, May 14, reported a consolidated net profit of Rs 3,976.66 crore for the March 2025 quarter (Q4 FY25), marking a year-on-year decline of 7.70 per cent from Rs 4,308.71 crore reported in the same period last year.
The state-run defence major’s revenue from operations also declined, coming in at Rs 13,699.85 crore—down 7.2 per cent compared to Rs 14,768.75 crore recorded in the March 2024 quarter.
From an operational standpoint, HAL posted an EBITDA (earnings before interest, taxes, depreciation, and amortisation) of Rs 5,292 crore for the quarter under review, reflecting a fall of 10.2 per cent from Rs 5,895 crore in the year-ago period.
The company’s EBITDA margin narrowed to 38.6 per cent from 40 per cent reported during the corresponding quarter of the previous fiscal.
Meanwhile, earnings per share (EPS) dropped to Rs 59.46 from Rs 64.43 a year earlier.
Following the earnings announcement, HAL shares were trading at Rs 4,790.75 apiece on the BSE, up nearly 4 per cent.
HAL shares gain over 3% post results
Despite the lower Q4 profit, HAL shares jumped 3.7 per cent intraday to hit Rs 4,780.40 on Wednesday, as investors responded positively to the company’s full-year performance. The stock opened at Rs 4,647.90 on the NSE, sharply higher from the previous close of Rs 4,609.80.
HAL FY25 performance: Net profit up 9.5%, revenue flat
For the financial year 2024–25 (FY25), HAL reported a net profit of Rs 8,316.80 crore, up 9.5 per cent compared to Rs 7,595 crore in FY24. Revenue grew marginally by 2% to Rs 30,981 crore, from Rs 30,380 crore a year ago. Full-year EPS came in at Rs 124.36.
The company highlighted a stable growth trajectory despite macro headwinds and a cyclical nature in defence payments.
Balance sheet outlook
In its notes, HAL acknowledged net and current liabilities of Rs 1,015.30 lakh and Rs 1,088.45 lakh, respectively, as of March 31, 2025. The company flagged this as an area that could raise questions about its “going concern” status. However, HAL assured it continues to generate positive cash flows and will liquidate liabilities in a phased manner.
It further noted that ongoing defence contracts and order visibility will support both operating and capital expenditure needs going forward.
What lies ahead for HAL
With a robust order book and pipeline of defence manufacturing projects, HAL is poised to remain a key player in India’s aerospace and defence sector. The stock has been among the top defence gainers on D-Street over the last year, delivering strong long-term returns.
Analysts believe any weakness from the Q4 bottom line could be short-lived, given HAL’s strategic importance and its consistent execution capabilities.
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