Bengaluru: Hindustan Aeronautics Limited (HAL) reported a strong financial performance for the first quarter of FY 2026-27, with standalone net profit rising 14.8% year-on-year to ₹1,580.61 crore from ₹1,377.15 crore in Q1 FY26.
Standalone revenue from operations increased 14.4% to ₹5,515.28 crore, compared with ₹4,819.14 crore in the year-ago quarter. The company’s consolidated net profit also grew 14.9% to ₹1,589.68 crore.
The audited financial results were approved by HAL’s Board of Directors on August 12, 2026.
HAL Q1 FY27 Financial Performance
HAL recorded growth across key financial indicators during the quarter.
Standalone Performance
- Revenue from operations: ₹5,515.28 crore, up 14.4%
- Total income: ₹6,418.09 crore, up 15.3%
- Net profit: ₹1,580.61 crore, up 14.8%
- Basic EPS: ₹23.63, up 14.8%
- Net worth: ₹40,862.51 crore
- Profit before tax: ₹2,125.28 crore
- Total expenses: ₹4,292.81 crore
Other income during the quarter stood at ₹902.81 crore.
Read also: PESB Recommends P.B. Rangarao as Director (Operations) of HAL After Selection Process
Consolidated Profit Rises 14.9%
On a consolidated basis, HAL’s total income increased to ₹6,415.41 crore from ₹5,566.10 crore in Q1 FY26, registering growth of 15.3%.
Consolidated net profit attributable to the company stood at ₹1,589.68 crore, compared with ₹1,383.77 crore in the corresponding period last year.
The consolidated profit before tax was ₹2,134.33 crore, including a share of profit from joint ventures of ₹11.61 crore.
EBITDA Margin Improves to 27.68%
HAL also reported an improvement in operating performance during Q1 FY27.
EBITDA stood at approximately ₹1,526 crore, compared with ₹1,280 crore in the same quarter last year. The figure was also above the analyst estimate of ₹1,358 crore.
The EBITDA margin expanded to 27.68% from 26.10% a year earlier and exceeded the estimated 25.78%.
The improvement indicates stronger operating efficiency and operating leverage during the quarter.
HAL Board Recommends ₹10 Final Dividend
The HAL Board has recommended a final dividend of ₹10 per equity share, representing 200% of the face value of ₹5 per share, for FY 2025-26.
The final dividend is subject to approval by shareholders at the forthcoming Annual General Meeting.
Including the ₹35 per share interim dividend already paid, HAL’s total dividend payout for FY 2025-26 would amount to ₹45 per share, subject to final dividend approval.
Flood-Related Inventory Losses Settled
HAL also disclosed developments related to inventory damaged during floods at the LCA TD store in September 2022.
The company-owned inventory loss of ₹1,033 lakh was fully settled through insurance in March 2026.
For customer-owned inventory, the initial loss assessment of ₹5,590 lakh was revised to ₹1,091 lakh based on OEM feedback. As a result, HAL reversed an excess provision of ₹4,499 lakh, while ₹1,091 lakh has been retained as a future liability.
Gratuity Ceiling Revision Impacts Employee Costs
HAL has also recognised additional liability following the revision of the Industrial Dearness Allowance gratuity ceiling from ₹20 lakh to ₹25 lakh, effective October 1, 2025.
The company recognised an additional liability of ₹237 lakh in Q1 FY27. The one-time impact means employee costs for the current quarter are not directly comparable with previous periods.
Price Finalisation Under PPRC Remains Pending
The company’s 4th Price and Principle Revision Contract (PPRC) is still under finalisation, with prices from FY 2023-24 onwards yet to be determined.
HAL has therefore provisionally recognised sales for FY 2024-25, FY 2025-26 and Q1 FY27 using conservative price indices. No escalation beyond FY 2024-25 prices has been applied.
HAL Invests in Advanced Materials Research Foundation
HAL has invested ₹245 lakh in the Section 8 company Systems Testing and Research for Advanced Materials Foundation.
The company has been allotted 2,00,000 equity shares, while allotment of the remaining 45,000 shares is awaited.
Auditor Highlights Board Composition Non-Compliance
Statutory auditors Gupta Nayar & Co. issued an unmodified opinion on HAL’s standalone and consolidated financial results.
However, the auditors highlighted certain compliance issues relating to the composition of the company’s Board and committees.
According to the disclosure, HAL was not compliant with requirements relating to the number of independent directors under:
- Regulation 17(1) of SEBI LODR Regulations
- Section 149(4) of the Companies Act, 2013
- Section 177 and Section 178 of the Companies Act, 2013
- Regulations 18(1) and 19(1) of SEBI LODR Regulations
The non-compliance relating to the Audit Committee and Nomination and Remuneration Committee has been applicable since April 5, 2026, due to the absence of the required number of independent directors.
Subsidiaries and Joint Ventures Update
HAL also provided updates on several subsidiaries and joint ventures.
HATSOFF Helicopter Training Private Limited: The company continues as a going concern despite net liability concerns and has secured multi-year defence contracts. Its net worth stood at ₹3,129.90 lakh as of June 30, 2026.
HALBIT Avionics Private Limited: The company continues as a going concern with positive cash flows, although its net liability stood at ₹1,146.11 lakh as of June 30, 2026.
Multirole Transport Aircraft Limited: The company is undergoing a voluntary liquidation process following government approval. HAL’s Board had approved the proposal in principle in February 2023.
Infotech HAL Limited: The NCLT admitted an insolvency petition on August 22, 2025, and the Corporate Insolvency Resolution Process (CIRP) has commenced.
HAL-Edgewood Technologies Private Limited: Its financial results were not provided and the company was not consolidated. HAL stated that the impact of non-consolidation is not material.
HAL Q1 FY27 Results: Key Takeaways
HAL’s Q1 FY27 performance shows double-digit growth in revenue and profit, alongside an improvement in EBITDA margins.
The key highlights include:
- Standalone net profit up 14.8%
- Consolidated net profit up 14.9%
- Standalone revenue up 14.4%
- EBITDA margin rises to 27.68%
- Total proposed dividend reaches ₹45 per share, including interim dividend
- Final dividend of ₹10 per share awaits shareholder approval
- Board composition and committee compliance remain areas to monitor
About Hindustan Aeronautics Limited
Hindustan Aeronautics Limited (HAL) is a leading Indian aerospace and defence company and a Maharatna Central Public Sector Enterprise under the Ministry of Defence. Headquartered in Bengaluru, HAL is involved in the design, development, manufacture, repair and overhaul of a wide range of aircraft, helicopters, aero-engines and related aerospace systems.
Read also: How HAL’s Indigenous Satellite-Guided Landing System Will Transform Helicopter Operations in India
