HAL's ₹2.4 trn order book to propel manufacturing revenue, say analysts

HAL Share: In the December quarter, HAL posted a 30 per cent jump in year-on-year (Y-o-Y) rise in net profit for Q3FY26 to ₹1,866.68 crore, compared to ₹1,439.83 crore in Q3FY25

Hindustan Aeronautics (HAL) reported its Q3FY26 numbers in market hours on Thursday. In the December quarter, HAL posted a 30 per cent jump in year-on-year (Y-o-Y) rise in net profit for Q3FY26 to ₹1,866.68 crore, compared to ₹1,439.83 crore in Q3FY25. Sequentially, the profit increased 12 per cent from ₹1,669.07 crore in Q2FY26. 

 

Its revenue from operations stood at ₹7,698.8 crore, as compared to ₹6,957.31 crore in Q3FY25 and ₹6,628.61 crore in Q2FY26. Check detailed results here  

At 9:24 AM, HAL shares were trading 0.55 per cent higher at ₹4,181.6 per share. In comparison, the BSE Sensex was down 0.86 per cent at 82,951.9.  

 

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Brokerages’ view on HAL

Nomura | Buy | Target cut to ₹6,000 from ₹6,100

Nomura has maintained its 'Buy' rating on Hindustan Aeronautics Limited (HAL) with a revised target price of ₹6,000, following a strong Q3FY26 performance where adjusted profit after tax (PAT) surged 45 per cent year-on-year (Y-o-Y) to ₹2,070 crore, beating consensus estimates by 21 per cent.  

While the brokerage marginally lowered its target price to account for slightly slower aircraft deliveries, it highlighted that five LCA Mk1A jets are ready for handover and another nine are awaiting GE engines, providing a clear near-term catalyst. Despite reports that HAL may not lead the AMCA program, Nomura remains confident in the company's robust ₹2.4 trillion order book and its critical role as a Tier-1 supplier for future platforms like the LCA-Mk2 and TEDBF.  

Ultimately, with a projected 23 per cent PAT compound annual growth rate (CAGR) through FY28 and the stock trading at a significant 50 per cent valuation discount to Bharat Electronics (BEL), the brokerage views HAL’s execution visibility and growth profile as highly attractive. 

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Motilal Oswal Financial Services | Buy | Target cut to ₹5,500 from ₹5,800

Motilal Oswal said HAL's Q3FY26 results came in line with its estimates. The brokerage highlighted that HAL’s massive ₹2.3 trillion order book is set to propel manufacturing revenue, with the company already prepared to deliver five Tejas Mk1A aircraft this year following the receipt of engines from GE.  

While Motilal cut its FY26–28 earnings estimates by 4–5 per cent to account for a more conservative delivery schedule for the Tejas Mk1A, it noted that further scaling of deliveries remains contingent on future engine arrivals. Despite ambiguity regarding HAL's specific role in the AMCA project amid reports of private sector leadership, the brokerage remains positive, citing the execution of the manufacturing order book and Tejas deliveries as the primary growth drivers for the stock.

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.

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