- Shares of Hindustan Aeronautics Ltd rose over 4% on FY27’s first trading day
- Citi maintains 'buy' call with Rs 5,560 target price, 59% upside potential
- HAL’s FY26 revenue was Rs 32,250 crore, up from Rs 30,981 crore in FY25
Shares of Hindustan Aeronautics Ltd (HAL) rallied over 4% on the first day of the new fiscal 2026-27 (FY27) after global brokerage Citi maintained a bullish 'buy' call on the defence PSU stock amid order inflows in the near-term. Citi has pegged a target price of Rs 5,560 for HAL, a potential upside of 59% from the current trading price. The Bengaluru-based PSU's provisional update for FY26 also implied high order inflows ahead with a growth of nearly 5%, according to the brokerage.
The provisional update notes that HAL's repair and overhaul orders are expected to remain robust in the coming years. The current backlog provides nearly seven years of manufacturing revenue visibility. HAL recorded a revenue of Rs 32,250 crore in FY26, compared to Rs Rs. 30,981 crore in FY25. HAL's order book was around Rs 2.54 lakh crore as on March 31, 2026, against the opening order book position of Rs 1.89 lakh crore, after adjusting the current-year liquidation.
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HAL explained that the increase is mainly due to the signing of major orders with the defence ministry for the supply of 97 Light Combat Aircraft LCA) MklA aircraft for Rs 62,370 crore, six ALH CG for Rs 2,704 crore, and eight Dornier CG for Rs 2,186 crore. The manufacturing orders for helicopters, aircraft, and engines provide longterm revenue visibility over the next 7-8 years.
On Wednesday, April 1, shares of HAL opened at Rs 3,581.40 and rose over 4% to hit an intra day high of Rs 3,671.80 against a 52-week high of Rs 5.165 per share. The PSU commands a market cap of Rs 2,42,009.61 crore. The defence PSU stock has given flat-to-negative returns of 0.59% in the last one year, according to stock exchange data.
HAL paid an interim dividend of Rs 35 per equity share at a face value of Rs 5 each for FY26, totalling Rs 2,341 crore. A final dividend of Rs 15 per equity share at a face value of Rs 5 each for FY25, totalling Rs 1,003 crore was paid. The total cash outflow for payment of the dividend during the year is Rs 3,344 crore to shareholders, according to HAL. Meanwhile, other defence stocks such as Bharat Electronics Ltd rallied 6% and Garden Reach Shipbuilders & Engineers (GRSE) surged more than 16% so far in the session.
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