Hindustan Aeronautics (HAL) Q1 results: Net profit declines 4% to ₹1,384 crore, EBITDA jumps 30%; margin improves by 380 bps

Hindustan Aeronautics Limited (HAL), the state-run fighter jet maker, on Tuesday, August 12, reported net profit of ₹1,384 crore in the first quarter of current financial year (Q1FY26), marking a decline of 4% from ₹1,437 crore in the same period last year.

The Bengaluru-based company's revenue from operations advanced 11% to ₹4,819 crore in April-June period from ₹4,348 crore in the year-ago period.

Hindustan Aeronautics reported strong operational performance as its operating profit also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 30% to ₹1,282 crore from ₹990 crore in the corresponding period last year.

Its operating profit margin improved by 380 basis points to 26.61% from 22.78%.

Meanwhile, India’s annual defence production has crossed the ₹1.5 lakh crore mark for the first time, recording a sharp increase over previous years. Defence Minister Rajnath Singh described the achievement as a clear sign of the country’s strengthening defence industrial base.

The 2024–25 figure represents an 18% increase over the previous fiscal year’s ₹1.2 lakh crore and a 90% surge from ₹79,071 crore in 2019–20. Officials credited the milestone to the combined efforts of the Ministry of Defence’s Department of Defence Production, defence public sector undertakings (PSUs), other state-owned manufacturers, and private industry.

Last week, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved a series of capital acquisition proposals worth approximately ₹67,000 crore to augment the combat capabilities of the armed forces across land, sea and air.

The approvals include new equipment and upgrades for the Indian Army, Navy, and Air Force, as well as unmanned systems and maintenance initiatives across services.

Following the earnings announcement, HAL shares traded 0.04% lower at ₹4,444, outperforming the SENSEX which was down 0.4%.