HAL shares gained 4% intraday to ₹4,805.30 after the company reported robust Q4FY26 results and announced its highest-ever dividend of ₹35 per share. The defence equipment manufacturer delivered strong financial performance with consolidated net profit rising 5.5% year-on-year to ₹4,196 crore compared to ₹3,977 crore in the corresponding quarter of the previous financial year. According to Business Standard, revenue from operations increased 1.77% YoY to ₹13,942 crore in Q4FY26, up from ₹13,699 crore reported in the same quarter last year. The company's board has proposed its first interim dividend of ₹35 per share of ₹5 each for FY26, marking the highest ever dividend payout by the firm if approved by shareholders.
The company demonstrated significant sequential improvement with net profit more than doubling from ₹1,867 crore reported in Q3 FY26. As reported by CNBC TV18, revenue from operations surged over 81% quarter-on-quarter from ₹7,699 crore in the December quarter, indicating strong operational momentum. The aerospace company reported consolidated revenue from operations for the March quarter at ₹13,942 crore, increasing nearly 2% from ₹13,698 crore reported for Q4FY25. Total expenses increased over 4% YoY to ₹9,522 crore during the period, with total expenses increasing by 55% quarter-on-quarter from ₹6,138 crore. The steady Q4 FY26 performance reflects the company's continued focus on indigenous manufacturing and strong defence order execution, with the surge in other income segment providing additional support to overall profitability.
HAL's earnings per share (EPS) rose nearly 6% to ₹62.57 during the fourth quarter and more than 9% to ₹135.71 for the financial year ended March 31, 2026. The company's net worth jumped 17% to ₹40,862 crore in FY26, demonstrating strong balance sheet growth. For the complete financial year 2026, HAL reported impressive growth metrics with net profit rising nearly 9% to ₹9,116 crore compared to ₹8,364 crore in FY25. According to The Economic Times, the company's revenue grew around 7% to ₹33,089 crore in FY26 from ₹30,981 crore in the previous financial year. HAL shares have gained around 11% over the past month and 7% so far in 2026, with the stock delivering returns of 216% over three years and 856% over five years, currently maintaining a market capitalisation of nearly ₹3.13 lakh crore.
While net profit showed strong growth, HAL's profitability metrics revealed significant pressure during the quarter. According to CNBC TV18, EBITDA declined 4.4% YoY to ₹5,057 crore in Q4FY26 compared to ₹5,294 crore in the previous year, with EBITDA margins narrowing by over 240 basis points compared to the base quarter. The EBITDA margin compressed by 230 basis points to 36.3% from 38.6% in Q4FY25, indicating margin pressure despite revenue growth. Material costs increased by 29%, now forming 46% of overall sales compared to 36% last year, which significantly impacted margins despite the company's ability to maintain profit growth through effective cost management and operational efficiency in executing defence orders.
HAL shares ended 0.15% lower at ₹4,610.50 after the intraday gains, though the stock maintained strong technical indicators. The defence stock has a RSI of 63, indicating the stock is neither oversold nor overbought on charts. HAL shares stand higher than all key moving averages including 5-day, 10-day, 20-day, 30-day, 50-day, 100-day and 200-day moving averages. The stock has gained 12.47% in a month and risen 210% in three years, with the stock hitting a 52-week high of ₹5,166 on May 16, 2025. The company, engaged in design, development, manufacture, repair, overhaul, upgrade and servicing of aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures, continues to benefit from strong defence sector demand and indigenous manufacturing initiatives.
