HAL Posts Higher Quarterly Profit
Hindustan Aeronautics Ltd (HAL) reported a 10.5% rise in consolidated net profit, reaching ₹16.69 billion ($189.89 million) for the quarter ending September 30, 2025.
The profit growth was supported by strong order execution, reflecting India’s push for self-reliance and modernization in defense manufacturing.
However, weaker operating margins weighed on investor sentiment, leading to a 3% decline in HAL’s stock after the results.
Key Margin Trends
HAL’s EBITDA margin for the quarter stood at 23.5%, down from 27.4% in the same period last year.
The company had previously projected an annual EBITDA margin of around 31%, but higher operating expenses and rising material costs impacted margins.
Total expenses increased 17.3%, driven by a 32.8% rise in the cost of materials consumed, reflecting inflationary pressures in defense manufacturing.
Strong Revenue and Defense Orders
HAL’s revenue rose 10.9% to ₹66.29 billion, bolstered by robust defense contracts and procurement deals.
During the quarter, HAL:
-
Signed a contract with the Ministry of Defence for fighter jet procurement worth ₹623.7 billion
-
Entered a technology transfer agreement with ISRO and other space-related government agencies
These deals reinforce HAL’s position as a key player in India’s defense and aerospace sector.
India’s Defense Push Boosts HAL
The Indian government continues to support local defense production, allocating ₹6.81 trillion in the union budget to the defense ministry, including ₹1.8 trillion for domestic procurement.
This strategic focus on Make in India initiatives is expected to further strengthen HAL’s order pipeline and long-term growth prospects.
⚡ Peer Performance
Other defense contractors also reported strong results. Bharat Electronics Ltd (BEL) posted higher quarterly profit in late October 2025, highlighting a robust quarter for India’s defense sector.
