HAL shares slip 2% after Q2 results; stock still up 13% in 2025; here’s what analysts said

The company reported a consolidated net profit of ₹1,669 crore in the second quarter of the fiscal year (Q2 FY26), marking a growth of 10.5% from ₹1,510 crore in the same period last year.

The Bengaluru-based company's revenue from operations advanced 11% to ₹6,629 crore in the July to September period as compared to ₹5,976 crore in the year-ago period.

The company’s net income increased 15.3% to ₹7,516 crore in the reporting quarter from ₹6,519 crore on a year-on-year (YoY) basis.

The state-run fighter jet maker's operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), however, declined 5% to ₹1,558 crore as against ₹1,640 crore in the corresponding period last year.

Its EBITDA margin also contracted to 23.5%, in contrast to 27.4% in the year-ago period.

Earnings per share (EPS) increased to ₹24.96 from ₹22.59 seen in the corresponding quarter of the previous fiscal year.

For half a year (H1 FY26), HAL’s net profit rose 3.5% to ₹3,053 crore as compared to ₹2,948 crore on a YoY basis. Its revenue from operations for H1 FY26 stood at ₹11,448 crore as against ₹10,324 crore in H1 FY25, rising 11%.

Here’s what analysts said

• Analysts at JP Morgan said Hindustan Aeronautics Ltd (HAL) delivered a decent performance in Q2, with both topline and bottomline growth, although margins fell short of expectations. The firm added that HAL’s strong revenue momentum offers confidence in achieving its FY26 revenue growth guidance.

• Nomura, on the other hand, described the quarter as mixed — with better-than-expected execution offset by weaker margins. The brokerage noted that PAT came in line with estimates, as higher other income helped compensate for the operational shortfall.

• Analysts at CLSA noted that HAL reported a strong Q2 performance, with PAT beating estimates on the back of robust top-line growth driven by engine deliveries and higher treasury income. However, margins were impacted by provisions for non-cash liquidated damages (LD), which are expected to reverse once deliveries pick up in the second half of FY26.

It further said that the company’s long-term outlook remains strong, supported by a healthy decadal order pipeline of $54 billion, with the recent large fighter aircraft order and visibility on the GE engine co-production deal seen as key growth catalysts.

• CITI analysts said they are not overly concerned about HAL’s slight EBITDA margin miss, given the strong sales visibility. The company’s EBITDA margin stood at 24.8% in H1FY26, compared with 25.5% in H1FY25.

Looking ahead, they expect revenue acceleration as delays in Tejas deliveries bottom out and manufacturing activity gains momentum. They also noted that valuations remain reasonable, supported by HAL’s solid order backlog, trading at around 7x trailing twelve-month sales and healthy return on equity.

HAL share price

At 10:53 PM, HAL shares were trading at ₹4,717.60 apiece on NSE, declining 0.65%.

Over the last five trading sessions, the stock has gained 3.5%, while in the last six months, HAL shares have climbed 2.5%, and since the beginning of 2025, the stock has surged 13%.

The company has a market capitalisation of ₹3.16 lakh crore.