Mumbai: Hindustan Aeronautics Limited (HAL), India’s leading aerospace and defence PSU, reported a strong financial performance for the third quarter of FY26, with standalone net profit rising 29.3% year-on-year to ₹1,851.72 crore. The company also announced an interim dividend of ₹35 per equity share for FY 2025-26.
The Board of Directors approved the audited financial results for the quarter and nine months ended December 31, 2025.
Q3 FY26 Standalone Financial Highlights
HAL delivered robust growth across key parameters in Q3 FY26:
- Net Profit: ₹1,851.72 crore (up 29.3% YoY)
- Revenue from Operations: ₹7,698.87 crore (up 10.7% YoY)
- Profit Before Tax (PBT): ₹2,471.87 crore (up 21.5% YoY)
- Earnings Per Share (EPS): ₹27.69
- Total Comprehensive Income: ₹1,880.31 crore
The strong performance reflects improved execution, higher realizations, and steady order inflows in the defence manufacturing segment.
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Nine-Month FY26 Performance (April–December 2025)
For the nine-month period of FY26, HAL maintained its growth momentum:
- Net Profit: ₹4,891.39 crore (up 12.2% YoY)
- Revenue: ₹19,146.47 crore (up 10.8% YoY)
- EPS (9M): ₹73.14
The consistent rise in revenue and profitability underscores HAL’s operational stability and expanding defence production capabilities.
Consolidated Results
HAL’s consolidated financial performance mirrored its standalone strength:
Q3 FY26 (Consolidated)
- Net Profit: ₹1,866.66 crore (up 29.7% YoY)
- EPS: ₹27.91
Nine-Month FY26 (Consolidated)
- Net Profit: ₹4,919.48 crore (up 12.1% YoY)
- EPS: ₹73.56
Interim Dividend Announcement
The Board declared a first interim dividend of ₹35 per equity share (on face value of ₹5) for FY26.
- Record Date: February 18, 2026
- Payment Date: On or before March 14, 2026
Shareholders seeking lower or nil TDS deduction must submit relevant forms (Form 15G/15H) and PAN details to KFin Technologies before the record date.
The dividend payout reflects management confidence in HAL’s financial strength and future growth prospects.
Key Operational & Accounting Updates
Gratuity Ceiling Revision
Following the Industrial Dearness Allowance (IDA) revision to 51.80%, the gratuity ceiling was increased from ₹20 lakh to ₹25 lakh effective October 1, 2025, resulting in an additional liability of ₹331.93 crore.
Pension Contribution Revision
The company recognized additional pension liabilities due to revised contribution rates.
Pay Revision Litigation
While the salary recovery issue for officers has been settled, the matter related to workmen remains pending. An amount of ₹182.16 crore is shown as claims receivable.
Insurance & Inventory Adjustment
An excess provision of ₹36.94 crore related to flood-damaged inventory was reversed after retrieval of customer-owned items.
Income Tax Refund
HAL received an income tax refund of ₹423.02 crore for AY 2011-12 in December 2025.
Auditor’s Observations
The statutory auditors issued an unmodified opinion on the financial results. Certain compliance matters related to Board composition under SEBI LODR and the Companies Act were noted but have since been rectified.
Some joint ventures are under liquidation or insolvency proceedings, though management has affirmed the company’s strong going concern position.
Outlook
HAL’s Q3 FY26 results highlight strong earnings growth, operational efficiency, and stable demand in India’s defence sector. With a robust order book, continued government focus on indigenous manufacturing under “Make in India,” and strategic execution across divisions, HAL remains well-positioned for sustained long-term growth.
About Hindustan Aeronautics Limited (HAL)
Hindustan Aeronautics Limited (HAL) is a Maharatna Central Public Sector Enterprise under the Ministry of Defence. Established in 1940, HAL is India’s premier aerospace and defence manufacturer, engaged in the design, development, manufacture, repair, and overhaul of aircraft, helicopters, aero-engines, avionics, and defence systems. The company plays a pivotal role in strengthening India’s indigenous defence capabilities.
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