Hindustan Aeronautics Q4 Results: Net profit dips, margin narrows but beats estimates

State-run defence equipment manufacturer Hindustan Aeronautics Ltd. reported its March quarter results, on Wednesday, May 14. The stock has given up most of its gains after the results announcement.

Hindustan Aeronautics' net profit declined by 7.8% from last year to ₹3,958 crore, but was higher than the estimates of ₹2,592 crore.

Revenue for the quarter also declined by 7.2% from last year to ₹1,3700 crore, while the provisional update shared by the company had projected revenue to be at ₹13,118 crore for the quarter.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 10.2% from the year-ago period to ₹5,292 crore, but was well above the expectations of ₹3,591 crore, while margins stood at 38.6%, well above expectations of 27.6%.

On a year-on-year basis, margins narrowed by 140 basis points.

In its provisional business update shared earlier, Hindustan Aeronautics had mentioned that it has received new manufacturing contracts worth ₹1.02 lakh crore and RoH contracts worth ₹17,500 crore.

The company also recently signed a contract with the Ministry of Defence for the supply of 156 LCH Prachand worth ₹62,777 crore.

Hindustan Aeronautics is targeting an order book worth up to ₹2.6 lakh crore for financial year 2026.

Shares of HAL have given up nearly all the gains, currently trading 0.5% higher at ₹4,262.