HAL Q1 Results: Earnings beat expectations leading to PSU stock recovering from lows

Shares of Hindustan Aeronautics Ltd. (HAL) are recovering from the lows of the day on Tuesday, August 12, after the defence PSU reported its results for the June quarter.Revenue for the quarter increased by 11% from last year to ₹4,819 crore, which is marginally lower than the CNBC-TV18 poll, which had projected the company’s revenue to increase by 13% from last year to ₹4,898 crore.

HAL’s revenue growth was driven by execution of ₹1.89 lakh crore worth of order book and a higher contribution of repairs and overhaul (ROH).

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by nearly 30% from the year-ago quarter to ₹1,284 crore, well above the CNBC-TV18 poll estimate of ₹1,114 crore.EBITDA margin saw a significant expansion during the quarter, contrary to expectations of a contraction of 11 basis points. EBITDA margin for the quarter stood at 26.7%,compared to 22.8% during the same quarter last year.

Profitability for the quarter declined by 4% from last year to ₹1,377 crore. The net profit was higher than the CNBC-TV18 poll estimate of ₹1,218 crore.

Here’s what HAL had guided for financial year 2026 earlier:

• Order book target to be between ₹2.5 lakh crore to ₹2.6 lakh crore
• Revenue growth to be between 8% and 10% and this guidance will be revisited after the first half
• The management is also anticipating double-digit revenue from next year onwards but it may happen this year itself.
• Adjusted EBITDA margin to remain at 31% over the next three to four years
• 12 LCA Mk1A aircraft expected to be delivered this year.

Shares of Hindustan Aeronautics have recovered from the lows of the day, currently trading 0.5% higher at ₹4,452.9.