Hindustan Aeronautics Limited (HAL), which is a government company under the Ministry of Defense, makes fighter aircraft and helicopters for the country. HAL has prepared important military aircraft like Tejas and Dhruv. HAL weapons during Operation Sindoor gave a befitting reply to Pakistan. Prime Minister Modi himself has also praised this company. Now the company has released the results of the June 2025 quarter. After the result, HAL shares saw an increase of about 3% on Wednesday.
HAL recorded a net profit of ₹ 1,383.77 crore in this quarter, which was ₹ 1,437.14 crore in the same quarter last year. Nevertheless, brokerage firms have full faith in the future of HAL. A big reason for this is the growing earnings of the company. In the June quarter, HAL’s operating income i.e. riven increased by 10.8% to ₹ 4,819.01 crore. The reason for this is the better project delivery and strong demand. HAL’s total net worth was ₹ 34,985.17 crore in the financial year ended in March 2025, which shows the company’s strong financial position.
Large decline in quarterly profits, but work strengthened
In this quarter, HAL’s net profit fell 65.2% to ₹ 4,347.50 crore to ₹ 1,383.77 crore as against the previous quarter. The reason for this huge decline is believed to be the difference between seasonal impact and project delivery. However, the total income of the company increased by 9.5% and it reached ₹ 5,566.10 crore. The thing to note is that revenue means that income increased, but the profit decreased. The reason for this was mainly a sharp decline in net income. Despite this, the work of the company i.e. the operational performance remained good and strong during this period.
Brokerage firms trust HAL
Brokerage house is looking positive about the results of HAL. Nuwama Institutional Equities say the June quarter results were better than expected. The company’s operating margin reached 26.7% with an annual growth of 10.8%, which was better than the market expected.
Nuwama has given a rating to buy (BUY) on HAL shares and has a target price of ₹ 6,000. They estimate that between 2025 and 2028, the company’s revenue growth may be around 21% annually, while earnings (EPS) may increase by about 11%.
At the same time, Motilal Oswal has also taken a positive attitude towards HAL. He described the company’s strong order book and delivery of Tejas fighter jet as an important reason for future growth. He has kept the target price ₹ 5,800 for HAL and has advised to buy.
Brokerage believes that the company is currently trading at a very attractive valuation according to the estimated earnings of FY26 and FY27. At the same time, large brokerage firms like Morgan Stanley, CLSA and JPMORGAN are also positive about HAL’s stock. CLSA has given HAL a ‘outperform’ rating and said that the company can benefit from large fighter jet order and engine supply.
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