Hindustan Aeronautics shares dropped around 5% on Monday, extending losses to 10% over three days after the defence major released its results for the January-March quarter of FY26. According to reports from The Economic Times, the stock crashed 5% on Friday and another 5% on Monday to hit an intraday low of ₹4,175 on NSE. The company reported a consolidated net profit of ₹4,196 crore for Q4FY26, marking a 6% year-on-year rise from ₹3,977 crore in the year-ago period. Revenue from operations rose 2% YoY to ₹13,942 crore in Q4FY26, compared to ₹13,700 crore in the corresponding quarter of the previous financial year.
Despite the market decline, major brokerages remain bullish on HAL stock. As reported by The Economic Times, Jefferies highlighted that while the March quarter EBITDA was 10% below estimates, PAT was 3% above expectations due to better other income. The brokerage lowered FY27E-28E EPS estimates by 3-8% factoring lower gross margins but expects the stock to move higher as execution picks up, particularly Tejas Mk1A aircraft deliveries in the next 3 months. Nuvama emphasized that ramp-up in LCA Tejas deliveries in H2FY27 and execution across ALH, HTT-40 and Sukhoi programmes remain key monitorables, while Equirus Securities cut FY27/FY28 EBITDA estimates by 10%/9% respectively.
According to reports from The Economic Times, JM Financial expects approximately 15% revenue CAGR driving around 10% EPS CAGR over FY26-28E, despite cutting EPS estimates for FY27/28 by approximately 2% each due to delays in Tejas Mk1A deliveries and lower profitability. The company's strong order backlog and upcoming Tejas Mk1A deliveries are expected to keep the long-term outlook positive. The stock has fallen by over 12% in one week, 5% in one month, and over 18% in one year, reflecting investor concerns about execution delays and softer margins despite the positive brokerage sentiment.
