Hindustan Aeronautics Ltd logo

Hindustan Aeronautics Ltd

HAL NSE

Key Fundamentals

LargecapEngineeringAerospace & Defense
Market Cap
2.9L Cr
Volatility
Moderate
P/E Ratio
32.05
EBITDA
₹9,770 Cr
Return on Equity
26.15%
Debt to Equity
0
Book Value
₹613.68
EPS
₹113.89
52W High
₹5,065
52W Low
₹3,479.1

Technical Indicators

Key Insights

Strengths

4
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 26.0%
  • Company has been maintaining a healthy dividend payout of 29.5%

Weaknesses

4
  • Stock is trading at 7.12 times its book value
  • The company has delivered a poor sales growth of 7.66% over past five years.
  • Earnings include an other income of Rs.3,743 Cr.
  • Working capital days have increased from 146 days to 279 days

Growth Rate

Revenue Growth
-1.35% ↘
Net Income Growth
13.01% ↘
Cash Flow Change
65.92% ↗
ROE
-8.57% ↘
ROCE
-28.79% ↘
EBITDA Margin (Avg.)
-26.87% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
AI opinion · based on fundamentals
Risk medium
HOLD Worth holding, not adding Conviction 6/10

HAL benefits from strong defence order visibility and excellent ROE of 26% over 3 years, but a PE of 32.4x and tepid 7% sales CAGR over 5 years limit near-term upside. The stock has corrected 11% over the past year, suggesting the market is already repricing growth expectations.

Bull Case 7
  • Exceptional return on equity with 3-year average ROE of 26% and 5-year average of 27%, indicating highly efficient capital deployment
  • Company is almost debt-free, providing significant financial flexibility for capacity expansion and new program investments
  • Overwhelming analyst consensus with 80% buy ratings (20 out of 25 analysts recommending buy)
  • Compounded profit growth of 23% over 5 years demonstrates strong operating leverage on even modest revenue increases
  • Healthy dividend payout ratio of 29.5% provides income support even at a modest 0.79% yield
  • 3-year stock CAGR of 33% reflects sustained re-rating driven by India's defence indigenisation push
  • Market cap of Rs 2,93,719 Cr provides institutional liquidity and index inclusion benefits
Bear Case 8
  • Poor sales growth of just 7-8% CAGR across 3, 5, and 10-year periods signals structural revenue scaling challenges
  • Stock trades at 7.19x book value, a steep premium for a company growing topline at only 7% CAGR
  • Working capital days have nearly doubled from 146 days to 279 days, indicating deteriorating cash conversion efficiency
  • Earnings quality concern as other income of Rs 3,743 Cr forms a material portion of reported profits
  • PE of 32.4x is demanding relative to single-digit revenue growth, leaving limited margin of safety
  • Stock has declined 11% over the past 1 year, underperforming broader market indices
  • TTM profit growth has decelerated to 9% versus the 5-year CAGR of 23%, suggesting momentum slowdown
  • Dividend yield of just 0.79% offers minimal downside cushion at current elevated valuations

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Headwinds 3
  • Tejas Mk1A delivery delays, penalties Jun 9

    Zero Tejas Mk1A jets delivered to IAF so far despite 18 airframes ready; MoD reviewing penalties on HAL for missing timelines. GE engine delays and incomplete radar/EW/weapons integration cited as causes.

  • EBITDA margin contraction in Q4FY26 Jun 16

    EBITDA declined 4% YoY to ₹5,058 crore in Q4FY26, with margin contracting from 38.6% to 36.3% due to higher operational expenses.

  • Stock down 3.17% YTD Jun 16

    HAL shares declined 2.97% over the past month and are down 3.17% year-to-date, closing at ₹4,256.45 on Jun 16.

Positives 5
  • Jefferies top pick, 16% EPS CAGR Jun 9

    Jefferies names HAL a top pick in defence sector, projecting 16% EPS CAGR over FY26-30E driven by indigenisation and strong order visibility.

  • 18-24 Tejas Mk1A ready by Dec Jun 9

    Defence Ministry expects 18-24 LCA Mk1A aircraft ready by year-end with 3 production lines operational (2 in Bengaluru, 1 in Nashik) and engine supplies stabilising.

  • ₹1.09 lakh crore Tejas order book Jun 9

    IAF has ordered 180 Tejas Mk1A jets in two tranches (83 in 2021 + 97 in 2025) worth a combined ~₹1.09 lakh crore, providing long-term revenue visibility.

  • FY26 dividend board meeting Jun 29 Jun 16

    Board meeting scheduled for June 29 to approve final dividend for FY26, following Q4FY26 net profit of ₹4,196 crore (up 5.51% YoY).

  • AMCA tech negotiations completed Jun 9

    Technical negotiations for GE-414 engines for AMCA prototype completed; RFP issued with responses expected by end of July. Total AMCA programme outlay ~₹15,000 crore.

Neutral 4
  • ₹30,000 cr MALE UAV bids submitted Jun 17

    HAL is among 10 bidders for the ₹30,000+ crore project to procure 87 MALE UAVs for IAF; bid window closed Jun 16 with order to be split between L1 and L2 bidders.

  • ₹66.57 cr block trade on NSE May 26

    Approximately 1,50,177 HAL shares traded in a block deal at ₹4,432.60 per share totalling ₹66.57 crore, likely institutional activity.

  • President holds shares unencumbered Jun 6

    President of India confirmed no encumbrance on HAL shareholding under SEBI takeover regulations.

  • GM (Planning) retirement May 31 May 27

    Shri Suji Abraham, GM (Planning), retired on May 31, 2026 per routine superannuation disclosed under SEBI Regulation 30.

TL;DR: HAL has a massive ₹1.09 lakh crore Tejas order book and Jefferies backing with a 16% EPS CAGR forecast, but execution risk is the central concern — zero Mk1A deliveries so far and MoD actively considering penalties for delays. Margin pressure surfaced in Q4FY26 with EBITDA contracting 200+ bps. The outlook hinges on whether GE engine supplies and system integration issues resolve by H2 2026, which would unlock deliveries and restore confidence in HAL's execution capability.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
12,495
3,915
5,636
6,061
14,769
4,348
5,976
6,957
13,700
4,819
6,629
7,699
13,942
Expenses
9,262
3,039
4,108
4,626
8,867
3,357
4,336
5,275
8,405
3,537
5,071
5,828
8,884
Operating Profit
3,232
877
1,528
1,435
5,901
991
1,640
1,683
5,295
1,282
1,558
1,871
5,059
OPM %
26%
22%
27%
24%
40%
23%
27%
24%
39%
27%
24%
24%
36%
Other Income
722
414
474
467
569
742
560
637
669
757
895
927
1,164
Interest
55
0
0
0
31
0
0
0
8
0
0
1
4
Depreciation
1,056
201
350
212
644
149
178
277
736
185
226
310
634
PBT
2,844
1,089
1,651
1,689
5,795
1,584
2,023
2,042
5,219
1,854
2,227
2,487
5,584
Tax %
0%
25%
25%
25%
26%
9%
25%
30%
24%
25%
25%
25%
25%
Net Profit
2,831
814
1,237
1,262
4,309
1,437
1,510
1,440
3,977
1,384
1,669
1,867
4,196
EPS in Rs
42.33
12.17
18.49
18.86
64.43
21.49
22.59
21.53
59.46
20.69
24.96
27.91
62.74
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
15,939
16,758
17,950
18,520
20,008
21,445
22,882
24,620
26,927
30,381
30,981
33,089
Expenses
13,560
14,285
14,719
15,071
15,457
16,531
17,538
19,205
20,242
20,630
21,360
23,319
Operating Profit
2,379
2,474
3,231
3,449
4,551
4,914
5,344
5,415
6,686
9,752
9,621
9,770
OPM %
15%
15%
18%
19%
23%
23%
23%
22%
25%
32%
31%
30%
Other Income
1,650
1,608
1,058
776
376
423
364
985
1,673
1,923
2,608
3,743
Interest
15
6
16
35
178
360
267
65
64
43
22
6
Depreciation
822
863
681
947
1,025
999
1,158
1,111
1,785
1,407
1,340
1,355
PBT
3,191
3,213
3,592
3,243
3,725
3,979
4,283
5,225
6,510
10,225
10,867
12,152
Tax %
25%
38%
27%
39%
37%
28%
24%
3%
10%
25%
23%
25%
Net Profit
2,399
2,004
2,625
1,990
2,328
2,883
3,246
5,080
5,828
7,621
8,364
9,116
EPS in Rs
24.89
27.72
36.3
29.76
34.82
43.1
48.53
75.96
87.14
114
125
136
Div. Payout %
20%
31%
30%
54%
28%
39%
31%
26%
32%
31%
32%
26%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
482
362
362
334
334
334
334
334
334
334
334
334
Reserves
16,322
10,671
12,198
9,177
11,748
12,914
15,090
18,979
23,238
28,804
34,647
40,707
Borrowings
165
80
1,022
905
4,116
5,927
53
49
52
50
51
11
Other Liabilities
47,370
45,420
38,163
38,047
35,298
35,027
37,619
40,892
45,652
51,723
73,665
91,362
Total Liabilities
64,339
56,532
51,744
48,463
51,496
54,203
53,096
60,254
69,276
80,911
1,08,698
1,32,415
Fixed Assets
7,366
6,925
7,350
7,566
7,459
7,357
7,166
6,766
6,834
6,737
6,671
9,581
CWIP
235
1,025
1,389
1,462
1,502
2,043
1,950
2,473
1,885
2,493
3,098
1,026
Investments
570
916
994
1,010
910
991
1,121
1,363
1,458
1,591
1,754
1,914
Other Assets
56,168
47,666
42,011
38,425
41,625
43,812
42,860
49,653
59,099
70,089
97,176
1,19,894
Total Assets
64,339
56,532
51,744
48,463
51,496
54,203
53,096
60,254
69,276
80,911
1,08,698
1,32,415
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
—
—
-404
-748
-7,700
1,527
15,117
10,033
8,830
8,223
13,643
10,906
Investing
—
—
3,012
597
5,294
-1,339
-1,180
-12,760
-5,728
-6,410
-10,771
-8,337
Financing
—
—
-164
-2,540
2,326
64
-7,070
-1,349
-1,731
-1,999
-2,579
-3,350
Net Cash Flow
—
—
2,443
-2,691
-80
252
6,867
-4,076
1,370
-186
294
-781
Free Cash Flow
—
—
-1,907
-2,000
-9,094
148
13,910
8,535
7,054
6,476
11,890
8,438
CFO/OP
—
—
20
22
-145
68
299
205
173
105
179
142
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
144
105
86
133
227
191
90
69
64
55
55
45
Inventory Days
1,104
1,016
879
870
881
815
602
607
527
544
736
780
Days Payable
103
91
64
72
113
163
75
96
116
116
156
112
Cash Conversion Cycle
1,145
1,030
900
931
995
843
617
580
475
484
634
713
Working Capital Days
39
-5
74
101
221
185
145
111
38
37
121
279
ROCE %
—
23%
29%
27%
29%
24%
26%
30%
31%
39%
34%
32%

Shareholding Pattern

As of Mar 2026
Promoters 71.64%
DIIs 10.50%
FIIs 10.20%
Public 6.71%
Others 0.95%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
75.15%
75.15%
75.15%
75.15%
75.15%
75.15%
75.15%
75.15%
71.65%
71.64%
71.64%
71.64%
71.64%
71.64%
71.64%
71.64%
71.64%
71.64%
71.64%
71.64%
71.64%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
12.94%
12.42%
11.68%
11.85%
12.26%
12.08%
11.90%
12.00%
10.86%
10.20%
DIIs
20.31%
20.54%
5.41%
6.39%
8.13%
7.52%
7.67%
12.72%
13.93%
10.04%
9.15%
9.14%
9.58%
8.81%
8.38%
8.15%
8.30%
8.73%
8.71%
9.74%
10.50%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
3.02%
2.85%
2.60%
2.90%
2.89%
2.94%
3.60%
3.88%
4.29%
4.75%
5.05%
5.35%
5.44%
6.79%
7.10%
6.93%
7.02%
6.76%
6.66%
6.78%
6.71%
Others
1.52%
1.46%
16.85%
15.56%
13.84%
14.39%
13.59%
8.24%
10.13%
13.57%
14.16%
0.94%
0.93%
1.08%
1.03%
1.02%
0.96%
0.97%
0.99%
0.98%
0.95%
No. of Shareholders
0
2,11,819
2,01,792
1,87,581
2,07,018
2,18,116
2,38,716
3,00,175
3,58,317
4,20,694
4,91,969
6,19,151
7,14,091
11,16,200
12,72,500
12,75,630
13,52,380
13,02,820
12,77,750
12,64,060
12,91,770

Documents

Frequently Asked Questions about Hindustan Aeronautics Ltd

What does Hindustan Aeronautics Ltd do?
Hindustan Aeronautics is engaged in the business of Manufacture of Aircraft and Helicopters and Repair, Maintenance of Aircraft and Helicopters.(Source : 2002-2003 Annual Report Page No:46)
Where is Hindustan Aeronautics Ltd (HAL) listed?
Hindustan Aeronautics Ltd is listed on the Indian stock exchanges. It is listed on NSE: HAL and BSE: 541154. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Hindustan Aeronautics Ltd belong to?
Hindustan Aeronautics Ltd operates in the Industrials sector within the Aerospace & Defense industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd has a market capitalisation of approximately ₹292254.67 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Hindustan Aeronautics Ltd?
The Price-to-Earnings (PE) ratio of Hindustan Aeronautics Ltd is 32.05. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Hindustan Aeronautics Ltd?
Over the past 52 weeks, Hindustan Aeronautics Ltd has traded between a low of ₹3,479.1 and a high of ₹5,065. This range helps investors understand the stock's price volatility and recent trading levels.
Does Hindustan Aeronautics Ltd pay dividends?
Yes, Hindustan Aeronautics Ltd has a dividend yield of 0.80%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Hindustan Aeronautics Ltd?
Hindustan Aeronautics Ltd has a Return on Equity (ROE) of 26.15%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Hindustan Aeronautics Ltd on Tapetide?
On Tapetide, you can view Hindustan Aeronautics Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Hindustan Aeronautics is engaged in the business of Manufacture of Aircraft and Helicopters and Repair, Maintenance of Aircraft and Helicopters.(Source : 2002-2003 Annual Report Page No:46)

Website hal-india.co.in
CEO Dr. D. K. Sunil
Employees 22,033
Listed 2018-03-28
Face Value ₹ 5
Issued Size 66,87,75,000

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