Hindustan Aeronautics Limited Earnings Summary — Q4 FY2026
HAL Achieves Robust 36% Operating Margin in Q4 FY2026 as Net Profit Surges 125% QoQ
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 60.4% sequentially in Q1 FY2027.
- Revenue of ₹5,515 Cr is 14.4% higher year-on-year.
- Revenue has compounded at -35.5% annualised over the last 10 quarters.
- Net profit of ₹1,590 Cr is 14.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -35.8% annualised across the period.
- Operating margin stands at 27.7% in Q1 FY2027.
- Operating margin expanded by 107 bps year-on-year.
- Over the last two years operating margin has expanded by 489 bps.
- PBT margin is 38.7%.
- Expense growth of 12.8% remained below revenue growth of 14.4%.
- Operating profit of ₹1,527 Cr is 19.1% higher year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 51/100 (Moderate) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Volatile | 5,515 | 13,942 | 7,699 | 6,629 | 4,819 | 13,700 | 6,957 | 5,976 | 4,348 | 14,769 |
| Expenses | Volatile | 3,988 | 8,884 | 5,828 | 5,071 | 3,537 | 8,405 | 5,275 | 4,336 | 3,357 | 8,867 |
| Operating Profit | Volatile | 1,527 | 5,059 | 1,871 | 1,558 | 1,282 | 5,295 | 1,683 | 1,640 | 991 | 5,901 |
| Operating Margin | Accelerating | 27.7% | 36.3% | 24.3% | 23.5% | 26.6% | 38.6% | 24.2% | 27.4% | 22.8% | 40.0% |
| Other Income | Improving | 912 | 1,164 | 927 | 895 | 757 | 669 | 637 | 560 | 742 | 569 |
| Interest | Volatile | 0 | 4 | 1 | 0 | 0 | 8 | 0 | 0 | 0 | 31 |
| Depreciation | Volatile | 304 | 634 | 310 | 226 | 185 | 736 | 277 | 178 | 149 | 644 |
| Profit Before Tax | Volatile | 2,134 | 5,584 | 2,487 | 2,227 | 1,854 | 5,219 | 2,042 | 2,023 | 1,584 | 5,795 |
| Tax | Volatile | 545 | 1,388 | 620 | 558 | 471 | 1,242 | 602 | 512 | 147 | 1,486 |
| Net Profit | Volatile | 1,590 | 4,196 | 1,867 | 1,669 | 1,384 | 3,977 | 1,440 | 1,510 | 1,437 | 4,309 |
| Net Margin | Stable | 28.8% | 30.1% | 24.3% | 25.2% | 28.7% | 29.0% | 20.7% | 25.3% | 33.1% | 29.2% |
Key Takeaways
- HAL recorded a strong end to FY2026 with quarterly revenue reaching 13,942 Cr, an 81% sequential increase.
- Net Profit for the quarter stood at 4,196 Cr, representing a 125% jump over the preceding quarter.
- Operating margins remain structurally high at 36%, despite a slight YoY dip from the 39-40% levels seen in previous Q4 cycles.
- Other income contributed significantly to the bottom line, reaching 1,164 Cr for the quarter, driven by a growing cash pile.
- The balance sheet remains exceptionally strong with total borrowings falling to just 11 Cr.
- The company demonstrates high year-end seasonality, with Q4 sales usually exceeding the combined total of previous quarters.
- The tax rate remained stable at 25% for the quarter.
- Overall annual net profit grew to 9,116 Cr in FY26, up from 8,364 Cr in FY25.
Management Guidance
Management remains focused on transitioning from a service-oriented PSU to a manufacturing powerhouse driven by 'Atmanirbhar Bharat' policies.
Sentiment Shift
Stable
Consistent execution and margin maintenance confirm HAL's transition to a high-margin manufacturing compounder.
Outlook
The company maintains high multi-year revenue visibility through a robust order book including Tejas and LCH platforms. High OPM % and negative net debt provide a strong cushion for upcoming tech transfers and domestic IP creation.
From the Annual Report (Key Quotes)
“HAL is currently the primary beneficiary of India's 'Atmanirbhar Bharat' defense policy.”
“Strategic monopoly in India's aerospace and defense sector, evolving from a service-oriented PSU to a manufacturing powerhouse.”
“Over the last decade, HAL has transitioned from persistent negative free cash flows to significant surplus generation.”
Official Quarterly Documents
This summary is AI-generated from Hindustan Aeronautics Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.