HAL Q3 Results: Hindustan Aeronautics Profit Up 30% to ₹1,867 crore; Interim Dividend Announced, PL Capital Sees 28% Upside
- 13th February 2026
- 03:00 PM
- 3 min read
Summary
Hindustan Aeronautics Ltd reported a 30% YoY jump in Q3FY26 profit to ₹1,867 crore, supported by steady execution and higher other income. With five Tejas aircraft ready for delivery and a strong order book, PL Capital maintains a Buy rating with a target price of ₹5,338.Mumbai | February 13
Hindustan Aeronautics Ltd (HAL) posted a strong set of numbers for the December quarter, with profit rising nearly 30% year-on-year, while revenue growth remained in double digits. Shares were trading around 2% higher on the NSE after the results.
Q3 Results: Profit up 30%, margins steady
HAL reported consolidated revenue of ₹7,698.8 crore in Q3FY26, up 10.7% from ₹6,957.3 crore in the year-ago quarter. Profit after tax (PAT) rose 29.6% YoY to ₹1,866.7 crore, compared to ₹1,439.8 crore last year. EBITDA increased 11.2% YoY to ₹1,871 crore, while EBITDA margin remained stable at 24.3%. Other income was up 44.7% YoY, which also supported the profit growth.
Employee costs rose 28.5% YoY, partly reflecting a one-time impact from new labour codes, though the exact amount was not disclosed.
For the first nine months of FY26, revenue rose 10.8% YoY to ₹19,146 crore, while adjusted PAT increased 16.3% YoY.
Interim dividend and record date announced
The board of directors of HAL has announced the first interim dividend of ₹35 per equity share, for the financial year 2026. The record date for this dividend is set for Wednesday, February 18, 2026. Eligible shareholders will receive the dividend on or before March 14, 2026.
Tejas deliveries in focus
Operationally, HAL said five Tejas light combat aircraft are fully ready for delivery to the Indian Air Force (IAF). An additional nine aircraft have already been built and flown. These aircraft are awaiting engine supplies from GE Aerospace before delivery.
In February 2021, the Ministry of Defence signed a ₹48,000 crore contract with HAL for the procurement of 83 Tejas Mk-1A jets. Deliveries have faced delays due to engine supply constraints, but the company stated that aircraft are ready once engines are received.
₹2,312 crore Dornier contract signed
Separately, the Ministry of Defence has signed a ₹2,312 crore contract with Hindustan Aeronautics Ltd for the procurement of eight Dornier 228 aircraft for the Indian Coast Guard.
AMCA concerns may have limited impact
Recent reports suggested HAL’s exclusion from the AMCA prototype phase. However, management has indicated confidence in participating in the production phase post-2035.
PL Capital believes that even if HAL is excluded from the prototype stage, the impact on medium- to long-term earnings is negligible, as AMCA production lies well beyond the current earnings visibility period.
Order book provides revenue visibility till 2032
HAL’s order book remains robust at ₹2.5–2.6 trillion, offering strong visibility up to 2032.
Key growth drivers include:
- Tejas Mk1A execution
- LCA Mk2
- IMRH (Indian Multi Role Helicopter)
- CATS programme
- Indigenous engine development including GE-414
Pl Capital view on HAL
PL Capital has maintained a Buy rating on Hindustan Aeronautics Ltd with a target price of ₹5,338. PL Capital has rolled forward its valuation to March 2028 and values HAL at 35x FY28E earnings.
At the current market price of around ₹4,159, the target implies an upside potential of nearly 28%.
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PL Capital notes that HAL benefits from:
- Government push for indigenous defence procurement
- Strong 2-year production pipeline of over ₹1 trillion
- Improving operating leverage
- Technology upgrades across platforms
- A robust confirmed order book providing revenue visibility till 2032.
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