HAL (Hindustan Aeronautics Ltd)'s Q1 FY 2025-26 Quarterly Results

Result Summary

• HAL (Hindustan Aeronautics Ltd) reported a 63.7% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 9.5%.
• Its expenses for the quarter were down by 52.6% QoQ and 2.3% YoY.
• The net profit decreased 67.9% QoQ and decreased 3.7% YoY.
• The earnings per share (EPS) of HAL (Hindustan Aeronautics Ltd) stood at 20.7 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Hindustan Aeronautics Limited (HAL) is one of the largest aerospace and defense companies in India. It is primarily engaged in the design, fabrication, and assembly of aircraft, helicopters, and related equipment for defense services. The company also provides maintenance, repair, and overhaul (MRO) services for aircraft and helicopters. HAL plays a pivotal role in India's defense sector, often collaborating with the Indian government and armed forces to supply and develop advanced aviation products. In recent years, HAL has focused on strengthening its indigenous capabilities and expanding its production capacity to meet the growing demands of the defense sector.

Revenue

In Q1FY26, HAL reported a total income of ₹5566.10 crores, a significant decrease of 63.7% from the previous quarter (Q4FY25), where the total income was ₹15326.06 crores. However, compared to the same quarter of the previous year (Q1FY25), where the total income was ₹5083.85 crores, there was an increase of 9.5% in total income. This demonstrates a positive year-over-year growth despite the substantial quarter-over-quarter decline. The company's revenue is a crucial indicator of its operational performance and reflects its ability to generate sales from its products and services.

Profitability

HAL's profitability metrics reveal a challenging quarter. The company reported a profit before tax of ₹1844.03 crores in Q1FY26, which is a decline of 68.1% from the previous quarter (Q4FY25) when the profit before tax stood at ₹5783.19 crores. Nonetheless, there was a year-over-year growth of 16.9% compared to Q1FY25, when the profit before tax was ₹1577.69 crores. The profit after tax for Q1FY26 was ₹1383.77 crores, representing a 67.9% decline from Q4FY25's ₹4308.68 crores but a slight decrease of 3.7% compared to Q1FY25's ₹1437.14 crores. Earnings per share (EPS) followed a similar trend, decreasing to ₹20.70 in Q1FY26 from ₹64.40 in Q4FY25, yet only slightly down from ₹21.50 in Q1FY25. These figures underline the volatility and seasonal nature of the company's profitability.

Operating Metrics

The operating metrics for HAL in Q1FY26 show a total expense of ₹3425.15 crores, marking a 52.6% decrease from Q4FY25's expenses of ₹7233.51 crores. When compared to Q1FY25, which recorded total expenses of ₹3506.16 crores, this represents a minor decrease of 2.3%. The substantial reduction in expenses quarter-over-quarter may have been a strategic response to the reduced income level, aligning costs with revenue generation. Tax expenses in Q1FY26 were ₹470.54 crores, significantly lower than the ₹1486.32 crores recorded in Q4FY25, reflecting a 68.3% decrease. However, this is a substantial increase of 221.0% from the Q1FY25 tax expense of ₹146.58 crores, indicating changes in the effective tax rate or tax strategies over the year.