Hindustan Aeronautics, Cochin Shipyard, Bharat Dynamics: Defence firms' shares rally 3%; here is how they fared in Q1 FY26

In the early trade, HAL shares were trading 2.33% higher at ₹4,512.20 apiece on the NSE, while Bharat Dynamics Ltd was trading over 3% higher at ₹1,533.40. Cochin Shipyard was trading 1.26% higher at ₹1,688.20.

Hindustan Aeronautics (HAL)

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

The Bengaluru-based company's revenue from operations advanced 11% to ₹4,819 crore during the quarter under review from ₹4,348 crore seen 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%.

In its filing to stock exchanges, HAL said its board, at its meeting held on June 27, 2025, had recommended a final dividend of ₹15 per equity share (300% of the face value of ₹5 per equity share) for the financial year 2024-25 in addition to one interim dividend of ₹25 per equity share (500% of the face value of ₹5 per equity share), which is subject to the approval of shareholders in the ensuing Annual General Meeting (AGM.)

Bharat Dynamics

Bharat Dynamics reported a 157% jump in its net profit at ₹18 crore on Tuesday, August 12, for the quarter ended June 30, 2025, as compared to ₹7 crore in the corresponding quarter of the previous fiscal year.

The state-run defence firm’s revenue from operations stood at ₹248 crore in Q1 FY26 as against ₹191 crore, clocking a growth of 30%.

On the operational level, Bharat Dynamics posted a net EBITDA loss of ₹45 crore in the reporting quarter in contrast to an EBITDA loss of ₹52 crore in Q1 FY25.

Last month, the company had received an order from Armoured Vehicles Nigam Limited (AVNL) for a value of ₹809 crore (gross) for the supply of one of the ATGMs. It will be executed in a span of three years.

Cochin Shipyard

Cochin Shipyard, the country's leading shipbuilding company, on Tuesday, August 12, reported a net profit of ₹188 crore for the first quarter of the current financial year (Q1 FY26), implying an increase of 8% from ₹174 crore in the same period last year.

The company's revenue from operations in the April-June period advanced 39% to ₹1,069 crore from ₹771 crore in the year-ago period.

The company earned ₹439 crore in revenue from the shipbuilding business and ₹630 crore from the ship-repairing business. The company's shipbuilding business contributed ₹36 crore towards profit, while the ship repairing business added ₹278 crore towards profit.

Meanwhile, the company said that its board of directors approved the appointment of SEP & Associates, Practicing Company Secretaries, Kochi, as the secretarial auditors of the company for a term of five consecutive years from the financial year 2025-26 till the financial year 2029-30, subject to approval of the shareholders of the company at the ensuing Annual General Meeting.