HAL Q4 profit rises 5.5% to Rs 4,196 crore; revenue up 2% YoY

May 14, 2026 | Markets Desk

Hindustan Aeronautics Limited (HAL) reported a consolidated net profit of Rs 4,196 crore for the March quarter, up 5.5% year-on-year from Rs 3,977 crore in Q4 FY25, the company announced on Thursday, May 14. Revenue from operations rose 2% to Rs 13,942 crore from Rs 13,700 crore in the year-ago period, per company filings. The stock surged over 3% to Rs 4,808 on the NSE before paring gains to trade around 1.5% higher at Rs 4,691 by 1 pm.

The Sequential Story Is the Real One

The YoY numbers look modest. The sequential numbers are not. Q3 FY26 net profit came in at Rs 1,867 crore on revenue of Rs 7,699 crore, which means Q4 profit more than doubled quarter-on-quarter and revenue surged over 81% sequentially. That kind of Q4 concentration is a structural feature of HAL’s business, not a one-off. Defence deliveries bunch at year-end as the government pushes through approvals, and HAL’s revenue has historically skewed heavily toward the March quarter. Investors who track only the YoY line consistently underread the full-year trajectory.

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Full Year FY26 — Where HAL Actually Stands

For the full financial year FY26, HAL reported net profit of Rs 9,116 crore, up nearly 9% from Rs 8,364 crore in FY25. Revenue grew around 7% to Rs 33,089 crore from Rs 30,981 crore the previous year. EPS for the full year came in at Rs 135.71, up over 9% YoY, while net worth jumped 17% to Rs 41,045 crore.

HAL Key Financial Metrics

Q4 FY26

Source: HAL company filings, BSE/NSE exchange data, May 14, 2026

At Rs 135.71 FY26 EPS, the stock trades at approximately 35x trailing earnings, above Motilal Oswal’s target multiple of 32x on FY27 estimates, which underpins their BUY target of Rs 5,100. That valuation gap is not a red flag given the order book.

HAL’s order book stood at Rs 2.54 lakh crore as of March 31, up from Rs 1.89 lakh crore at the start of the year, driven by the 97 LCA Mk1A contract worth Rs 62,370 crore and other Ministry of Defence awards. At Rs 33,089 crore in annual revenue, that backlog represents roughly 7.7 years of current run-rate revenue.

The Detail Most Coverage Is Missing

Net worth on a consolidated basis rose to Rs 41,045 crore as of March 31, 2026, from Rs 34,985 crore a year earlier. Cash and cash equivalents stood at Rs 3,768 crore at year-end. A 17% net worth jump in a single year on a balance sheet that carries negligible debt is not just a profit story, it is retained earnings compounding at scale, and it funds HAL’s Rs 4,000 crore annual capex programme without external borrowing.

The year was not without friction. HAL was unable to deliver the planned Tejas Mk1A units in FY26 as originally scheduled. GE is expected to deliver 20 additional engines between June and December 2026, with six Tejas Mk1A aircraft having Cat-A engines by April-end. Twenty airframes are ready and waiting. The bottleneck is not manufacturing capacity, it is engine supply, and that distinction matters for how analysts model FY27.

The Number Analysts Are Actually Watching

Of the three triggers on the May 15 earnings call, Tejas Mk1A delivery guidance is the one that will move analyst models.

It is the single variable that determines whether JM Financial’s projected 21% revenue CAGR for HAL over FY26-28, driven by 50%-plus manufacturing revenue CAGR from LCA Tejas Mk1A deliveries beginning FY27, holds or gets cut. JM Financial’s own sensitivity analysis flags 8% downside risk to FY27 revenue estimates if Tejas Mk1A deliveries are delayed further.

Citi maintained a BUY on HAL with a target of Rs 5,560, citing F414 engine deal prospects. Motilal Oswal holds a BUY at Rs 5,100, premised on 32x P/E on March 2027 earnings. Both targets sit above the current price of Rs 4,691. Both get revised tomorrow.

Board Meeting Tomorrow — What Investors Are Waiting For

HAL’s Q4 FY26 earnings call is scheduled for May 15 at 4 PM IST, hosted by Ambit Capital and moderated by Sameer Thakur, with CMD Kota Ravi and CFO Barenya Senapati participating.

HAL paid an interim dividend of Rs 35 per share for FY26, amounting to Rs 2,341 crore. A final dividend for FY26 may also be considered at the board meeting. In FY25, the final dividend was Rs 15 per share — any announcement above that level tomorrow would push total FY26 payout to a record.

The Union Budget 2026-27 allocated Rs 6 lakh crore to defence, a 9.5% increase with a 13% rise in capital expenditure. The macro tailwind is intact. Whether HAL converts that into delivered Tejas aircraft at the pace the order book implies is the only question that matters going into the 4 PM call.

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Frequently Asked Questions

Q: What were HAL’s Q4 FY26 results?

Consolidated net profit rose 5.5% YoY to Rs 4,196 crore in Q4 FY26 from Rs 3,977 crore in Q4 FY25, per company filings. Revenue from operations grew 2% YoY to Rs 13,942 crore. Sequentially, profit more than doubled from Rs 1,867 crore in Q3 FY26, and revenue surged over 81% from Rs 7,699 crore in the December quarter.

Q: What is HAL’s share price target after Q4 FY26 results?

Citi maintained a BUY with a target of Rs 5,560 and Motilal Oswal holds a BUY at Rs 5,100, both above the current price of approximately Rs 4,691. Analyst consensus 12-month targets range from Rs 5,060 to Rs 5,527, implying 8–18% upside from current levels. Revisions are expected after the May 15 earnings call.

Q: What is HAL’s order book and what is the FY27 outlook?

HAL’s order book stood at Rs 2.54 lakh crore as of March 31, 2026, up from Rs 1.89 lakh crore at the start of FY26, providing revenue visibility through 2034. JM Financial projects 21% revenue CAGR over FY26-28, contingent on Tejas Mk1A deliveries beginning FY27. GE is expected to supply 20 additional engines between June and December 2026, the delivery pace of those engines is the single variable that determines whether the FY27 revenue ramp-up materialises on schedule.