Hindustan Aeronautics (HNAL IN) – Q3FY26 Result Update – Long term revenue visibility intact amid rumored AMCA exclusion – BUY
Published on 13 Feb 2026
Hindustan Aeronautics (HAL) delivered a 10.7% YoY revenue growth, while EBITDA margin remained flat at 24.3%. HAL continues to demonstrate strong execution and growth visibility, having received fifth GE-F404 engines during the quarter, with five LCA MkA1 aircrafts ready for delivery and an additional nine aircrafts already built and awaiting engine supplies for delivery. While rumours suggest HAL’s exclusion from the AMCA prototype phase, management remains confident of participating in the production phase, expected post-2035. We believe that even in the event of exclusion from the prototype stage, the impact on HAL’s mid-to-long-term earnings is negligible, as AMCA production lies well beyond the current horizon. Meanwhile, a robust confirmed order book provides strong revenue visibility up to 2032, supported by a healthy production pipeline and multiple strategic programmes including IMRH, LCA Mk2 and CATS which are expected to enter production post-2032, reinforcing HAL’s long-term growth and technological capabilities. The stock is currently trading at a P/E of 30.1x/27.3x on FY27/28E earnings. We roll forward to Mar’28E and maintain ‘Buy’ rating valuing the stock at a PE of 35x Mar’28E (38x Sep’27E earlier) arriving at a TP of Rs5,338 (Rs5,507 earlier).
