Hindustan Aeronautics shares fell nearly 5% in Monday's trade, extending losses to over 11% in the last three sessions as weaker-than-expected March quarter earnings and continued concerns over delayed Tejas Mk1A deliveries weighed on investor sentiment. According to reports from Moneycontrol, the stock dropped as much as 4.66% to ₹4,181.60 on NSE in early trade on Monday morning. Despite the sharp decline, HAL reported a 5.5% year-on-year rise in net profit at ₹4,196 crore for the March quarter, compared with ₹3,977 crore in the year-ago period. Revenue from operations rose 1.7% to ₹13,942 crore.
While headline profit beat estimates due to higher treasury income and other income, brokerages flagged operational weakness and execution concerns. As reported by Moneycontrol, Jefferies retained its 'Buy' call with a target price of ₹6,300 but noted that March quarter EBITDA was 10% below estimates due to a 9% revenue miss. The brokerage also lowered its FY27-FY28 earnings estimates by 3-8%, citing weaker gross margins. UBS maintained its 'Sell' rating with a target price of ₹3,200, highlighting that despite management's earlier guidance, no Tejas deliveries have materialised so far, raising concerns over execution and long-term growth visibility. CLSA kept its 'Outperform' rating with a target price of ₹5,265, pointing to the start of Mk1A deliveries and clarity on the GE Aerospace engine deal as key near-term triggers.
Concerns around the Tejas programme have been publicly flagged by Air Chief Marshal Amar Preet Singh. According to reports from Moneycontrol, speaking at a public event last year, Singh had said, "So, once a timeline is given, not a single project that I can think of has been completed on time. So, this is something we must look at. Why should we promise something which cannot be achieved? While signing the contract itself, sometimes we are sure that it is not going to come up, but we just sign the contract." The programme delays continue to weigh on investor sentiment despite HAL's operational performance.
Other income jumped 76.6% year-on-year to around ₹1,151 crore, cushioning pressure on core margins. As reported by Moneycontrol, while headline profit beat estimates due to higher treasury income and other income, brokerages flagged operational weakness and execution concerns. The company's earnings were supported by engine deliveries, helicopters, and treasury income, providing some stability despite the revenue challenges.
