‘Tejas’ manufacturing company earned bumper profit
Hindustan Aeronautics Limited (HAL), the company that manufactures fighter aircraft like ‘Tejas’, is called the ‘backbone’ of the country’s defense. During ‘Operation Sindoor’, the fighter planes of this company had reminded Pakistan of its status. Defense Minister Rajnath Singh himself had praised HAL last month and said that HAL has proved this by providing round-the-clock support to the Indian Air Force in the difficult times of ‘Operation Sindoor’. This company, which has played such an important role in the security of the country, has now released its results for the second quarter of the financial year 2026. In these results, the company has earned bumper profits and its net profit has increased by more than 10%. But, despite these excellent figures, there was disappointment on one front, the impact of which was clearly visible on the company’s shares on Wednesday.
More than 10% jump in earnings
According to data released by the company, HAL’s consolidated net profit increased by 10.5% to Rs 1,669.05 crore in the July-September quarter. It was Rs 1,510.49 crore in the same quarter last year. Similarly, the total revenue of the company also increased by 10.92% to Rs 6,628.61 crore, which was Rs 5,976.29 crore in the same period of the last financial year. The market expected the company’s revenue to be Rs 6,405 crore and profit to be Rs 1,646 crore, which means the company beat the estimates in both the cases.
‘Margin’ gave a shock
Amidst these strong results, the company’s operating performance was a bit disappointing. HAL’s EBITDA (earnings before interest, taxes, and other deductions) declined by 5% to Rs 1,558 crore. The market was expecting Rs 1,759 crore, which was not achieved. This had a direct impact on the company’s ability to operate at a profit, i.e. EBITDA margin. The company’s margin declined to 23.5% from 27.4% last year. This is also much lower than the market estimate of 27.5%.
HAL slips in stock market
Even though the company’s profits have increased, the sharp decline in margins has increased the concern of investors. This is the reason why selling pressure was seen in HAL shares on Wednesday after the announcement of results. At one point during trading, the stock had fallen by 3.30% to a low of Rs 4,702. However, there was a slight recovery from lower levels later and by 2:44 pm the stock was trading at Rs 4,728.40, down 2.80%. This fall is when the Nifty 50 index was trading with a gain of 0.75%.
Know the opinion of experts also
However, despite the current decline, most market experts are optimistic about the future of HAL. According to Bloomberg data, 19 out of 24 analysts tracking the company have advised ‘Buy’. While three have given the opinion of ‘Hold’ and only two have given the opinion of ‘Sell’. These experts believe that the average 12-month target price of the stock can be Rs 5,664.71, which shows an increase of about 18% from the current price.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.