Hindustan Aeronautics has outlined its financial guidance for FY27, projecting revenue growth of 10% to 12% while maintaining EBITDA margins in the range of 30% to 31%. The company reported a 7% increase in revenue from operations for FY26, reaching INR33,050 crores compared to INR30,981 crores in the previous year. EBITDA grew by 11% to INR13,472 crores, with operating margins maintained at 30%.

FY27 Financial Targets and Investments

The company plans to invest approximately INR12,000 crores by 2030 across strategic projects, including LCA MK2 GE-414 engines, IMRH engines, SSLV manufacturing, and aero engine indigenization. For the current financial year, HAL anticipates that manufacturing revenue will play a dominant role, supported by the commencement of deliveries for the LCA Mark-1A and HTT-40 programs.

Order Pipeline and Delivery Plans

HAL expects an order pipeline of INR90,000 crores over the next two years, driven by anticipated contracts for 143 ALH helicopters and the SU-30 upgrade project. The company's order book improved to INR2,54,538 crores as of the end of FY26, with fresh orders of INR97,028 crores received during the year. Major orders included the supply of 97 LCA Mark-1A aircraft to the IAF.

On the delivery front, HAL plans to deliver approximately 20 LCA MK1A aircraft in FY27, supported by GE's commitment to supply 15 to 20 engines. Additionally, the company targets the delivery of 20+ HTT-40 aircraft during the same period.

Tejas MK2 and Operational Updates

HAL has set a near-term delivery target for the Tejas MK2, with the prototype rollout expected by March. The company is also working on resolving final iterations for the LCA Mark-1A, with deliveries anticipated to commence by August or September. These developments underscore HAL's focus on advancing its indigenous aircraft manufacturing capabilities while meeting critical defence delivery schedules.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE066F01020/c3cb5fabc2334c2e.pdf

Hindustan Aeronautics Limited has reported its audited financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results at its meeting held on May 14, 2026. The company delivered a strong performance for the full year, with both revenue and profitability improving on a consolidated basis. Following the results, leading global brokerages have shared divergent views on the stock's outlook. Additionally, the management hosted an earnings call on May 15, 2026, to discuss the performance and future guidance.

Quarterly Performance

For the quarter ended March 31, 2026, Hindustan Aeronautics posted a consolidated net profit of ₹4,196.04 crore, compared to ₹3,980 crore in the same quarter of the previous year, surpassing analyst estimates of ₹3,350 crore. Revenue from operations for the quarter stood at ₹13,942.40 crore, against ₹13,700 crore in the year-ago period. The standalone net profit for the quarter was ₹4,184.28 crore on a revenue of ₹13,943.32 crore.

The company's Q4 EBITDA came in at ₹5,058 crore versus ₹5,300 crore in the same quarter last year, against an estimate of ₹4,590 crore. The EBITDA margin for the quarter was 36.28%, compared to 38.65% in the year-ago period, while estimates had pegged it at 33.70%.

The following table summarises key Q4 consolidated metrics:

Full-Year Financial Performance

For the financial year ended March 31, 2026, Hindustan Aeronautics reported a consolidated net profit of ₹9,115.52 crore, up from ₹8,364.05 crore in the previous year. Revenue from operations for the year stood at ₹33,088.82 crore, compared to ₹30,981.05 crore in the prior year. Total income for the consolidated entity was ₹36,787.95 crore for the year. On a standalone basis, the net profit for the year was ₹9,075.67 crore, while revenue from operations reached ₹33,089.79 crore.

Key Financial Metrics and Capital Structure

The company's earnings per share (EPS) on a consolidated basis for the year was ₹136.30. The paid-up equity share capital remained at ₹33,439 lakh. The net worth, including retained earnings, stood at ₹41,04,460 lakh on a consolidated basis. The financial results have been audited by the statutory auditors, who issued an unmodified opinion. The results are subject to supplementary audit by the Comptroller and Auditor General of India.

Management Guidance and Outlook

During the earnings call, management highlighted that the order book improved to ₹2,54,538 crore against ₹1,89,302 crore as on April 1, 2025. Fresh orders received during the year totaled ₹97,028 crore. The company expects to maintain double-digit revenue growth in FY27, specifically in the range of 10% to 12%. EBITDA margins are expected to be maintained around 30% to 31%.

Regarding the LCA Tejas Mark-1A program, management indicated that deliveries are expected to commence by August or September 2026, with plans to deliver around 20 aircraft this financial year. The company is also targeting the rollout of the Tejas Mark-II prototype by March 2027. Capex for the year crossed ₹2,386 crore, with plans to invest around ₹12,000 crore by 2030 to enhance manufacturing infrastructure for various projects including LCA Mark-II and GE 414 engines.

Broker Views Post Q4 FY26

Global brokerages have offered a range of assessments on Hindustan Aeronautics following the Q4 FY26 results. The table below captures the latest ratings and target prices across six brokerages:

Nomura maintained its Buy rating with a target price of ₹5,954, citing the Q4 FY26 operating performance beat, robust order inflows during FY26, and continued improvement in the company's balance sheet strength. Goldman Sachs maintained a Neutral stance with a target price of ₹5,225, acknowledging the strong order book but flagging delayed execution recovery and weaker EBITDA margins attributable to higher other expenses and capitalised costs. Goldman Sachs also highlighted a sharp decline in provisions as an indicator of subdued manufacturing activity, and identified Tejas Mk1A deliveries as a key potential stock re-rating trigger.

CLSA maintained an Outperform rating with a target price of ₹5,265, citing a PAT beat driven by engine and helicopter deliveries along with treasury income. The brokerage noted a 21% YoY rise in the company's cash pile to US$4.9 billion, and flagged Mk1A deliveries in 2Q and visibility on the GE engine production deal as key catalysts. CLSA also valued Hindustan Aeronautics as the cheapest pure-play defence stock with strong Make-in-India opportunities.

UBS maintained a Sell rating with a target price of ₹3,200, noting that while the Q4 EBITDA beat was driven by provisions, concerns persist over execution delays and long-term growth. The brokerage pointed to the absence of Tejas deliveries despite earlier guidance, margins falling below targets, heavy dependence on LCA Mk1A orders, and large capital expenditure plans through FY30, even as operating cash flows remain supported by customer advances. Jefferies maintained a Buy rating with a target price of ₹6,300, noting a Q4 EBITDA miss due to lower revenues but a PAT beat from stronger other income. The brokerage expects the stock to rerate as execution improves and Tejas Mk1A aircraft deliveries begin over the next three months, despite FY27–28 EPS cuts stemming from lower gross margins.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE066F01020/345b395e-b350-4cd1-bfc7-d17cf0c3d65a.pdf