State-run Hindustan Aeronautics Ltd delivered robust financial results for the first quarter of FY2026-27, with consolidated profit rising 15% year-on-year to ₹1,590 crore compared to ₹1,384 crore in the same quarter of the previous financial year. According to latest reports from CNBC-TV18, the defence PSU beat CNBC-TV18 poll estimates of ₹1,493 crore, demonstrating strong operational performance across key financial metrics. The company's revenue from operations increased 14% to ₹5,515 crore compared to ₹4,819 crore in the year-ago period, with total income rising over 15% YoY to ₹6,415 crore while total expenses also increased more than 15% YoY to ₹4,263 crore during the quarter under review. The impressive financial results showcased robust financial health for the defence major during the April-June quarter, with earnings per share (EPS) rising to ₹23.77 apiece from ₹20.69 apiece in the corresponding period last year. The Q1FY26 number compares with mere 2% growth in Q4FY26 and 7% in FY26, reflecting a significant pickup in execution and aligning with the company's FY27 revenue growth guidance of 10-12%.
The company's revenue from operations rose to ₹5,515 crore in Q1 FY27, as reported by CNBC-TV18, representing a significant increase from ₹4,819 crore in the corresponding quarter of the previous financial year. This growth reflects the company's ability to expand its business operations and maintain strong market demand for its defence products and services, with the 14% year-on-year rise demonstrating consistent operational expansion. The revenue performance exceeded analyst expectations of ₹5,268 crore, indicating strong operational execution and market demand for HAL's defence capabilities, with the company meeting analyst estimates for both profit and revenue performance across multiple financial metrics. The improvement reflects a pick-up in execution and was in line with the company's FY27 revenue growth guidance, with the Q1FY26 number significantly higher than the 2% growth in Q4FY26 and 7% in FY26.
The operating performance showed exceptional strength with EBITDA increasing 19% year-on-year to ₹1,530 crore, significantly beating the ₹1,358 crore expected by analyst polls. As per CNBC-TV18, EBITDA margin expanded to 27.7% from 26.6% a year ago, surpassing the 25.8% Street estimate, demonstrating improved operational efficiency and cost management. Despite a notable increase in raw material costs, the EBITDA rose 19% year-on-year to ₹1,530 crore, as other costs declined, showing the company's ability to manage cost pressures effectively. This strong operating performance, combined with the revenue growth, translated into the company's ability to deliver better-than-expected profitability while maintaining healthy margins across its core business segments. The Q1 numbers therefore represented a beat across the key metrics tracked by the poll, with EBITDA recording faster year-on-year growth than revenue and the operating margin improving by 110 basis points. However, EBITDA margin at 27.7% was notably short of the guided 30-31% for FY27, though this is expected to improve with Tejas deliveries.
Motilal Oswal reports that Hindustan Aeronautics has received seven GE F404 engines till date and targets to commence deliveries of Tejas Mk1A aircrafts soon, with the first jet targeted for August-September 2026. The company has already ramped up its LCA manufacturing capacity to 24 aircrafts annually, significantly improving production capabilities. With supply chain-related issues starting to ease out for GE, Motilal Oswal expects Tejas deliveries to ramp up from FY28 onwards, supporting topline growth beyond the current quarter. Nomura Global Markets Research noted that HAL has already built more than 20 airframes for the LCA Tejas Mk1A, which can be quickly completed upon receiving the engines, projecting deliveries of 6, 16 and 20 aircraft in FY27, FY28 and FY29 respectively. Antique Stock Broking estimates an addressable pipeline of ₹4.5 trillion over the next four to five years, with HAL's current annual production capacity of 24 units and plans to raise it to 30*. The company has orders to deliver 180 Tejas aircraft, worth about ₹1.1 trillion, with 15-20 engines expected to be delivered in FY27 compared to six engines received in FY26.
The Hindu BusinessLine reports that brokerages continue to maintain positive ratings on HAL stock, with The Hindu BusinessLine specifically recommending a 'Buy' rating with target price of ₹5,795, significantly higher than the current market price of ₹5,015.50. The brokerage values the stock at a PE of 36x Mar'28E (35x Mar'28E earlier), citing improving GE F-404 engine availability that should enable a ramp-up in LCA Mk1A deliveries. Motilal Oswal has raised its target price to ₹5,800 from ₹5,500, maintaining its 'Buy' rating based on the average of DCF and 30x two-year forward earnings. The stock is currently trading at 33.1x/27.6x/22.8x P/E on FY27E/FY28E/FY29E EPS. Prabhudas Lilladher has issued a 'Buy' rating with target price of ₹5,795, significantly higher than previous estimates, as reported in their research dated August 13, 2026. The brokerage revised EPS estimates by +2.7%/+3.9% and highlighted that HAL continues to strengthen its position in India's defence and aerospace ecosystem, supported by robust order opportunities of ~₹900 billion over the next two years across ALH helicopters, Su-30 upgrades, Dornier aircraft and engine manufacturing programs. Choice Institutional Equities has joined the positive chorus, issuing a 'Buy' rating with target price of ₹5,650 in their research dated August 12, 2026, valuing HAL at 30x FY28E EPS.
