Hindustan Aeronautics Ltd.'s net profit for the first quarter of financial year 2027 jumped 15% year-on-year, in-line with analysts' estimates.
The defense company posted a consolidated bottom-line of Rs 1,590 crore, compared to Rs 1,384 crore in the year-ago period. Analysts were estimating a profit of Rs 1,540 crore.
Revenue rose 14.4% to Rs 5,515 crore from Rs 4,819 crore, exceeding analysts expectations of Rs 5,288 crore. Earnings before interest, taxes, depreciation and amortisation soared 47% to Rs 1,526 crore from Rs 1,039 crore, ahead of the 1,425 estimates.
Margin expanded sharply to 27.7% from 21.6% in the corresponding quarter of the last fiscal. The Ebitda margin was slightly above D-street estimate of 27%.
Financial services group InCred pointed out that the growth in Ebitda was led by a 12% decline in raw material costs, and Provision reversals as other operational expense was down significantly on a year-on-year basis.
InCred flagged some earnings quality issues like lower Gross Margins, plausible one offs in other opex, higher other income driving PBT etc and said that it expects the stock to correct.
The brokerage said it could be a short bet for traders, but it still prefers BEL over HAL.
Hindustan Aeronautics Q1FY27 Results - Cons, YoY
- Net profit up 14.9% at Rs 1,590 crore vs Rs 1,384 crore YoY
- Revenue up 14.4% at Rs 5,515 crore vs Rs 4,819 crore YoY
- EBITDA up 46.9% at Rs 1,526 crore vs Rs 1,039 crore YoY
- EBITDA margin at 27.7% vs 21.6% YoY
- Other income at Rs 900 crore vs Rs 747 crore YoY
Results Vs Estimates
- Net profit at Rs 1,590 crore vs estimate of Rs 1,540 crore
- Revenue at Rs 5,515 crore vs estimate of Rs 5,288 crore
- EBITDA at Rs 1,526 crore vs estimate of Rs 1,425 crore
- EBITDA margin at 27.7% vs estimate of 27%
HAL Share Price
HAL's stock jumped 3% to an intraday high of Rs 5,055 apiece on the NSE. The share price has risen 13.4% year-to-date and 12.6% in the last 12 months.
The scrip pared some gains to trade 1.3% higher at Rs 4,972.
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