HAL Q2 profit rises 16 pc to Rs 1,936 crore, revenue up 14.8 pc

Hindustan Aeronautics Limited clocks 16 pc rise in its Q2 profit to Rs 1,936 crore

Bengaluru, Nov 12

The company's net profit rose from Rs 1,669 crore in the corresponding quarter of the previous financial year (Q2 FY26), according to its stock exchange filing.

Revenue from operations grew 14.8 per cent to Rs 7,613 crore during the quarter, compared with Rs 6,629 crore a year earlier.

However, operating performance remained under pressure. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 11.6 per cent year-on-year to Rs 1,739 crore.

EBITDA margin narrowed to 22.8 per cent from 23.5 per cent in the year-ago quarter, as per its regulatory filing.

The decline in margins came as total expenses climbed sharply to Rs 6,132 crore in the September quarter from Rs 5,296 crore a year ago.

However, HAL shares fell as much as 4.15 per cent during the day to an intra-day low of Rs 4,738.80 apiece.

During noon trade, the stock was trading 2.45 per cent lower at Rs 4,822.65.

Despite the post-results decline, brokerage firm CLSA maintained a positive outlook on the defence manufacturer.

The foreign brokerage raised its target price on HAL to Rs 5,625 from Rs 5,581 and retained its 'Outperform' rating.

CLSA said it expects deliveries of the Light Combat Aircraft (LCA) Mk1A to commence soon and believes recent remarks by Air Chief Marshal A.P. Singh on restoring the Indian Air Force's combat strength to its sanctioned level support the view that the programme faces no fundamental hurdles.

The brokerage added that the government's push for defence indigenisation under the Make in India initiative is gaining traction.

HAL has delivered strong long-term returns to investors, with the stock surging over 582 per cent in the last five years and more than doubling over the past three years.

On a year-to-date basis, the shares have gained around 10 per cent.

— IANS