HAL
Large CapHindustan Aeronautics Limited
Industrials
Hindustan Aeronautics Limited (HAL) is a strategic Indian aerospace and defense organization engaged in the design, development, manufacturing, repair, and overhaul of aircraft, helicopters, and aero engines. The company plays a crucial role in India's national security and self-reliance in the aerospace sector.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 22/100margin compression · Rev +2% YoY · PAT +6% YoY · +81% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹13,942 Cr | +1.8% | +81.1% |
| EBITDA | ₹5,059 Cr | -4.5% | +170.4% |
| Operating margin | 36.0% | -300 bps | +1200 bps |
| PAT | ₹4,196 Cr | +5.5% | +124.8% |
| PAT margin | 30.1% | +107 bps | +585 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
HAL reports robust FY26 financials with 7% YoY revenue growth to INR33,050 Cr and 11% YoY EBITDA growth to INR13,472 Cr. Order book surged to INR2,54,538 Cr, driven by new LCA Mark-1A contracts, despite persistent LCA delivery delays.
HAL delivered strong FY26 financial results and significantly boosted its order book, providing long-term revenue visibility. However, repeated delays in LCA Mark-1A deliveries, attributed to software refinements and global supply chain issues for GE engines, are a material concern. Management expects deliveries to commence by Aug/Sep 2026, but past delays warrant skepticism. Future growth hinges on timely execution of new programs and mitigating supply chain risks.
Revenue by Activity (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
LCA Mark-1A Program
Major orders bagged include contracts for the supply of 97 LCA Mark-1A to IAF.
ALH Dhruv NG & HTT-40
Indigenously designed and developed ALH Dhruv NG took maiden flight. Maiden sortie of the first series production HTT-40 aircraft successfully completed.
Diversification into Civil Aerospace
Signed SSLV Technology Transfer Agreement with ISRO and MoU with United Aircraft Corporation, Russia, for SJ-100 production in India.
Global Aerospace Supply Chain Integration
Signed agreement with Safran Aircraft Engines for industrialization and production of rotating parts of LEAP engines.
LCA Mark-1A Production Line
Production capacity of 8 LCA Mark-1A per annum established with the inauguration of the third production line at HAL Nashik on 17th October 2025.
LCA & HTT-40 Manufacturing Ramp-up
Production capacity ramped up for LCA and HTT-40 manufacturing at Bangalore and Nashik plants.
Future Manufacturing Infrastructure
Plan to invest around INR12,000 crores by 2030 for LCA Mark-II, GE 414 engines, IMRH engines, SSLV, and aero engine indigenization.
Diversified Portfolio
Deliveries of ALH helicopters, AL-35FP engines, RD-33 engines and ROH revenues helped offset delays in Tejas Mark-1A and HTT-40 programs, enabling balanced growth.
Strong Order Book
The order book improved to INR2,54,538 crores, providing significant revenue visibility and stability.
Government Push for Indigenization
Indian aerospace and defense ecosystem is undergoing transformational growth, supporting self-reliance.
Global Supply Chain Disruptions
Global aerospace supply chain disruptions caused slowness in component receipts, impacting delivery timelines.
GE Engine Supply Issues
GE engine supply issues contributed to delays in LCA Mark-1A deliveries, though GE has committed more engines for the current year.
LCA Mark-1A Delivery Delays
Deliveries of LCA Mark-1A have been stretched multiple times due to software refinements and engine supply, causing investor anxiety.
Execution Risks for New Programs
Executing first-time design and development projects like LCA involves iterations and refinements, posing execution challenges.
Supply Chain Vulnerability
Ongoing global geopolitical situation causes slowness in vendor item receipts, potentially impacting delivery schedules for various platforms.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The document primarily presents full financial year (FY26 vs FY25) results and discusses annual targets, making year-over-year comparison most relevant for assessing overall performance and growth trends.
Revenue from Operations
Achieved revenue from operations of INR33,050 crores for financial year 2025-'26 in comparison to INR30,981 crores in financial year 2024-'25, an increase of 7%.
EBITDA
EBITDA grew by 11% to reach INR13,472 crores as against INR12,168 crores of the previous year.
Operating EBITDA Margin
Operating EBITDA was at 30% of the revenue and was maintained at the levels of the previous year.
Order Inflow (FY26)
Fresh orders received by the company were INR97,028 crores, which includes manufacturing orders of INR69,668 crores and ROH orders of INR26,539 crores.
FY27 Revenue Growth Guidance
Management is hopeful of maintaining a double-digit revenue growth in the current financial year '26-'27, in the range of 10% to 12% minimum.
FY27 EBITDA Margin Guidance
EBITDA margin, historically around 30-31%, is expected to be maintained in FY27.
LCA Mark-1A Delivery Outlook
Expects to start LCA Mark-1A deliveries by August or September 2026, targeting around 20 deliveries in FY27.
Order Pipeline Outlook
Expects to receive additional orders of INR90,000 crores, including ROH orders, during the next 2 years, with major anticipated contracts for 143 ALH and Su-30 upgrade.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| LCA Mark-1A Deliveries | Delayed, expected to start by Aug/Sep 2026, targeting 20 deliveries in FY27. | Actual commencement and ramp-up of deliveries to the Indian Air Force as per revised timelines. |
| FY27 Revenue Growth | Management guidance of 10-12% double-digit growth. | Achievement of the guided double-digit revenue growth, particularly driven by manufacturing sales. |
| Tejas Mark II Prototype Rollout | Expected in the last quarter of FY27 (March 2027). | Timely rollout of the Tejas Mark II prototype and subsequent progress in flight testing. |
| GE F414 Engine Order | Expected by the end of next 2 years. | Progress on flight testing and finalization of the order for GE F414 engines for LCA Mark-II. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
55NeutralSMA20 +2.7% / mo
Technical chart
HALweekly · 3Y-3.1%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 49. Wait for confirmation.
- SMA20 rising (~2.6% over last month) — short-term momentum positive.
- RSI(14) at 49 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 16% off 52W high · 23% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 30.4%.
- Quality contributes 17/20 to the score.
Main drags
- Valuation is weaker at 7/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Growth is weaker at 15/25; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 91st percentile of the scored universe and 92nd percentile within Industrials. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 71.6%. Key concern: ROCE trend is -3%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 92nd pctile, median 68 · Large: 77th pctile, median 74
46 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 71.6%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.9%.
- ▸7 years of positive FCF.
Trust risks
- ▸ROCE trend is -3%.
- ▸OPM spread across recent quarters is 16%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 31.10
- P/B
- 6.90
- EV/EBITDA
- 25.48
- Market Cap
- 283437.00Cr
Profitability
- ROE
- 24.00%
- ROCE
- 32.00%
- ROA
- 6.88%
- Dividend Y
- 0.94%
Growth (CAGR)
- Revenue 5Y
- 8.00%
- EPS 5Y
- 23.00%
- Revenue 3Y
- 7.00%
- EPS 3Y
- 16.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 1628.33×
- Altman Z
- 2.90
- Book Value
- 614.00
Cash Flow
- FCF Yield
- 0.91%
- FCF Positive Y
- 7/5
- OCF
- 10906.00 Cr
- EPS TTM
- 136.30
Shareholding
- Promoter Hold
- 71.64%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 45%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.