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

Hindustan Aeronautics has come under fresh analyst scrutiny as global brokerage UBS revised its target price on the stock downward to ₹3200 per share, citing weak internals as the basis for the cut.

UBS Revises Target Price Downward

UBS has trimmed its target price for Hindustan Aeronautics to ₹3200 per share, marking a notable downward revision driven by concerns over the company's internal performance metrics. The brokerage flagged weak internals as the primary rationale behind the reduced target.

Key Takeaways

• UBS has cut its target price for Hindustan Aeronautics to ₹3200 per share.
• The revision is attributed to weak internal fundamentals of the company.
• The downgrade reflects a cautious outlook from the brokerage on the stock.

The target price cut by UBS underscores growing concerns around the internal health of Hindustan Aeronautics, as the brokerage adopts a more conservative valuation stance on the defence aerospace company.