Hindustan Aeronautics Limited achieved a significant milestone in its sustainability journey during FY26, sourcing around 40% of its electricity requirements from renewable energy sources. The state-owned aerospace manufacturer disclosed this progress in its Business Responsibility and Sustainability Report (BRSR), reaffirming its commitment to achieving 100% renewable energy usage by 2030. This shift supports the company’s broader strategy to reduce its carbon footprint and enhance operational efficiency across its national and international footprint.

The report, which covers the financial year ended March 31, 2026, was prepared on a standalone basis and subjected to reasonable assurance by Sustainability Actions Private Limited. Hindustan Aeronautics operates 35 locations nationwide and three international offices, serving customers across 36 states and union territories domestically, while exporting platforms to 13 countries in the current fiscal year. Exports contributed 1.58% to the total turnover of ₹31,79,183 lakh.

Renewable Energy and Environmental Stewardship

Hindustan Aeronautics has expanded its renewable energy portfolio to a total capacity of 50.13 MW. This infrastructure includes 8.53 MW of rooftop solar systems, 26.95 MW of ground-mounted solar plants, and 14.7 MW of wind power plants installed in Karnataka. The company continues to invest in energy-efficient equipment, such as LED lighting and star-rated air conditioners, to further optimize consumption.

Environmental compliance remains robust, with all divisions certified under ISO 14001 for environmental management. The company has implemented Zero Liquid Discharge (ZLD) systems at major production locations through Effluent Treatment Plants (ETPs) and Sewage Treatment Plants (STPs). Treated water is reused for gardening and non-potable purposes, minimizing freshwater withdrawal. Hazardous waste, including paint sludge and used oil, is disposed of through Pollution Control Board-authorized agencies.

Workplace Safety and Employee Well-being

Safety performance in FY26 recorded zero fatalities. The company maintained an Occupational Health & Safety Management System (OHMS) aligned with ISO 45001:2018 standards across all operational areas. Key safety metrics are detailed below:

Hindustan Aeronautics employs a total of 39,673 individuals, comprising 23,502 employees and 16,171 workers. Of these, 9.38% of employees and 8.98% of workers are women. The company reported a turnover rate of 0.26% for permanent employees and 0.11% for permanent workers. Medical needs for permanent staff are addressed through in-house Industrial Health Centers, eliminating the need for separate health insurance premiums for this group.

Governance and Stakeholder Engagement

The company’s governance framework includes a dedicated BRSR Committee under the Board of Directors, which reviews performance against policies as required. Hindustan Aeronautics received 535 complaints from shareholders and 210 from employees during FY26, with resolution mechanisms in place via centralized portals. No penalties or fines were imposed by regulators for corporate governance violations, although a minor penalty of ₹30,000 was paid to the Additional Chief Judicial Magistrate, Bangalore, related to a contract labor incident, which was not appealed.

What the Numbers Show

The divergence between high revenue turnover (₹31,79,183 lakh) and relatively low export contribution (1.58%) underscores Hindustan Aeronautics’ primary reliance on domestic defense contracts. While the company serves 13 countries internationally, the vast majority of its operational scale and revenue generation is driven by domestic clients, including the Indian Air Force, Navy, Army, and Coast Guard. This concentration highlights the strategic importance of government defense budgets to the company’s financial stability, even as it expands its global footprint incrementally.

Hindustan Aeronautics Ltd will hold its 63rd Annual General Meeting on Friday, August 28, 2026, at 1530 hours via Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The meeting is convened to transact the ordinary and special business outlined in the notice dated July 17, 2026, which includes the approval of financial statements and the Board's Report for FY25-26.

The company has uploaded the complete Annual Report 2025-26 on the listing portals of both BSE and NSE. This document contains the notice of the AGM, the Business Responsibility and Sustainability Report, and the Financial Statements along with the Auditors' Report. The filing was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Dividend Record Date and Tax Compliance

The record date for the payment of the final dividend for the financial year 2025-26, subject to shareholder approval at the AGM, is fixed for Friday, August 14, 2026. In accordance with the Income Tax Act, 2025, Tax at Source (TDS) will be deducted at applicable rates during dividend payments unless shareholders are exempted.

Shareholders seeking tax exemptions must upload requisite documents at the designated portal by the record date. The timeline and requirements are detailed below:

Key Instructions for Shareholders

As mandated by Rule 203 of the Income Tax Rules 2026, if the dividend income is assessable in the hands of a person other than the deductee, the deductee must file a declaration with the company in the prescribed manner. This declaration must be emailed to investors@hal-india.co.in on or before August 14, 2026.

The company emphasized that no communication regarding tax determination or deduction will be entertained if received after the due dates or sent to any other email address of the company or its Registrar and Transfer Agent (RTA). Furthermore, fresh tax exemption documents must be submitted for each dividend event; documents submitted for earlier occasions will not be considered for this dividend payment.