HAL Reports Revenue Growth In FY25 Despite Supply Chain Challenges

Hindustan Aeronautics Ltd. has reported a revenue of Rs 30,400 crore for the financial year ended March 31, 2025, despite facing supply chain challenges. This compares to Rs 30,381 crore in the previous year.

HAL's order book reached Rs 1.84 lakh crore, compared to Rs 94,129 crore at the beginning of the year. These are provisional numbers released by the company in a business update.

This increase is attributed to new manufacturing contracts worth Rs 1,02,000 crore and Repair and Overhaul contracts totaling Rs 17,500 crore. Notably, HAL signed a major contract with the Ministry of Defence for the supply of 156 Light Combat Helicopters Prachand, valued at Rs 62,777 crore, marking the largest procurement by the MoD from HAL to date, as per an exchange filing.

In addition to this, the company became the first Defence Public Sector Undertaking to attain 'Maharatna' status, a prestigious recognition of its operational and financial performance.

HAL also secured contracts for the supply of 12 additional Su-30 MKI aircraft, the Mid Life Upgrade (MLU) of 40 Do-228 aircraft, the supply of 240 AL31FP engines for Su-30 MKI aircraft, and the avionics upgrade of one IL-78 aircraft. Impressively, the first AL31FP engine was delivered within a month of contract signing.

The scrip rose as much as 5.49% to Rs 4,407 apiece. It pared gains to trade 3.59% higher at Rs 4,327.45 apiece, as of 9:18 a.m. This compares to a 0.40% decline in the NSE Nifty 50.

It has risen 27% in the last 12 month. The relative strength index was at 76.

Out of 17 analysts tracking the company, 16 maintain a 'buy' rating and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 19.5%.