Hindustan Aeronautics Ltd. share price target

Hindustan Aeronautics’ (HAL) Q2FY26 performance was impacted by higher provisioning and an upsurge in other expenditure leading to 70bps/310bps correction in EBITDA margin to 23.5% with EBITDA of INR 15.6bn (-5%/+21% YoY/QoQ).

Solid order-book underpins growth as execution accelerates About the stock: Hindustan Aeronautics (HAL), one of the largest Defence PSU in India, is engaged in design, development, manufacture, repair, overhaul, upgrade...

Hindustan Aeronautics’ (HAL) 2QFY26 revenue/PAT came in line with our estimates. Lower-than-expected margins were offset by higher other income.

Hindustan Aeronautics (HAL) has received the follow-on order of 97 light combat aircraft (LCA) Mk1A worth INR624b from the Ministry of Defence (MoD). This is in addition to the previous order of 83 Tejas LCA Mk1A received in Jan’21.

Hindustan Aeronautics Limited (HAL’s) Q1FY26 performance was broadly in line with the management guidance. EBITDA surged 29% YoY mainly on higher revenue and lower provisioning.

Increase in the company's contribution to the Pension Scheme for Executives has led to higher employee costs. 26.6%. HAL continues to strengthen its position as a key player in India's defence and aerospace, backed by robust prospect pipeline of ~Rs1.0trn over the next few years. Ongoing investments in capacity, capability, and...

Incorporated in 1963, Hindustan Aeronautics is a public sector Defence undertaking, the only Indian company to design, develop and assemble aircraft, helicopters & aero-engines, and upgrade, maintain, repair & overhaul them.

The company achieved an order book of Rs1.89trn in FY25. We revise our FY26/27E EPS estimates upward by 14.5%/9.5%, accounting for the deliveries of LCA Mk1A and improved operating efficiencies. Hindustan Aeronautics (HAL) reported a 7.2% YoY decline in revenue, with EBITDA margin contracting 131bps YoY to 38.6%. During the quarter, HAL received the first GE F-404 engine, with 11 more expected by December 2025, enabling the long awaited LCA Mk1A deliveries to the IAF. Management remains confident in...

HAL reported a better-than-expected FY25 performance, driven by improved margins on the back of lower provisions. The company ended the year with a robust order book of INR1.8t, clocking inflows of INR1t.

Our recent interactions with industry participants and defense consultants focused on the need to put defense and aerospace projects on a fast track, the potential bidders for future tenders for MRFA, the potential impact on the overall defense budget kitty if such large deals were to go through.

Hindustan Aeronautics (HAL) is a market leader in aerospace defense. It boasts a strong order book of INR1.8t as of 31st Mar’25, along with a promising prospect pipeline of INR6t, which is likely to be awarded over the next few years.

Hindustan Aeronautics Limited (HAL) has clocked revenue of INR 304bn in FY25 (vs INR 303.8bn in FY24).
Revenue was ~6% below our estimate of INR 322.4bn, mainly because of shortfall in delivery of ALH-Dhruv and other manufacturing revenue.

GE Aerospace has delivered the first of 99 (nos.) F404-IN20 engines to HAL for Tejas Mk 1A. We see this is a vital development that allays execution risk concerns. At Aero India, HAL expressed confidence in receiving 12 (nos.) F404- IN20 engines for the LCA Mk 1A this year.