- HAL reported a 16% YoY rise in Q2FY27 net profit to Rs 1,936 crore
- Revenue grew 14.8% YoY to Rs 7,613 crore, surpassing estimates
- EBITDA rose 11.6% YoY to Rs 1,739 crore, below estimated Rs 1,924 crore
Hindustan Aeronautics Ltd. (HAL) reported a 16% year-on-year (YoY) increase in consolidated net profit to Rs 1,936 crore in the September quarter of financial year 2027 (Q2FY27), as against Rs 1,669 crore in the corresponding quarter last year. The defence company's net profit came in ahead of analysts' estimates of Rs 1,899 crore.
Revenue from operations or top line increased 14.8% YoY to Rs 7,613 crore in Q2FY27, compared with Rs 6,629 crore a year ago. The revenue figure also exceeded the consensus estimate of Rs 7,483 crore.
However, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 11.6% YoY to Rs 1,739 crore, falling short of the estimated Rs 1,924 crore. EBITDA margin contracted to 22.8% in Q2FY27 from 23.5% in the year-ago quarter, also below the estimated 25.7%.
HAL's expenses surged to Rs 6,132.02 crore in the September quarter of FY27, from Rs 5,296.44 crore a year ago.
On the bourses, the stock reacted sharply. HAL's shares fell as much as 4.15% to hit an intraday low of Rs 4,738.80 per share. The fall in share price came after the company's operating profit and operating profit margin missed Street estimates.
At 1:41 pm, HAL shares were trading 2.45% lower at Rs 4,822.65 per share. At 1:41 pm, BSE Sensex was trading 0.09% higher at 81,950 level.
CLSA Raises Target Price
Earlier in the day, CLSA raised its target price on HAL to Rs 5,625 from Rs 5,581, while maintaining its 'Outperform' rating.
The foreign brokerage expects deliveries of the Light Combat Aircraft (LCA) Mk1A to begin soon. It believes recent comments by Air Chief Marshal A P Singh Dixit on the need to restore the Indian Air Force's combat strength to its sanctioned level of 42 squadrons, from the current 29, reinforce its view that the LCA Mk1A programme faces no fundamental issues.
CLSA also noted that the Modi 3.0 government's defence Make in India ambitions are translating into progress. The brokerage identified the commencement of LCA Mk1A deliveries, expected in Q3 or Q4 FY27, and greater visibility on the GE engine deal as key catalysts for the stock. It further said HAL remains the cheapest pure-play defence stock despite its sector-leading position.
HAL Share Price History
HAL shares have delivered a return of 582.48% over the past five years, while gaining 133.24% over the past three years.
The stock has advanced 14.02% over two years, but its gains have been relatively muted over the shorter term, rising just 1.85% over the past year.
On a year-to-date (YTD) basis, the defence major's shares are up 10%.
The stock has seen some volatility in recent past. It declined 2.52% over the past three months and 4.07% in the past week. However, it has gained 5.80% over the past six months and 1.66% over the past month.
The shares are also down 0.64% over the past two weeks, reflecting some near-term weakness.
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