Earnings Review
HAL Q2 PAT in line with view, up after 2 qtrs of YoY fall
This story was originally published at 16:33 IST on 12 November 2025
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--HAL Jul-Sept net profit INR 16.63 bln
--Analysts saw HAL Jul-Sept net profit at INR 16.6 bln
--HAL Jul-Sept revenue INR 66.28 bln
--Analysts saw HAL Jul-Sept revenue at INR 65.8 bln
--HAL Jul-Sept net profit INR 16.63 bln vs INR 14.90 bln year ago
--HAL Jul-Sept revenue INR 66.28 bln vs INR 59.77 bln year ago
--HAL Apr-Sept net profit INR 30.40 bln vs INR 29.26 bln year ago
--HAL Apr-Sept revenue INR 114.48 bln vs INR 103.24 bln year ago
By Arya S. Biju and Anjana Therese Antony
MUMBAI – After reporting an on-year decline for the past two quarters, Hindustan Aeronautics Ltd. reported a double-digit on-year rise in its net profit for the September quarter, supported by a stable growth in its top line. However, the growth in net profit for the quarter was limited by higher cost of raw materials, which in turn led to its total expenses rising at a much faster pace than its revenues.
The defence sector and aerospace company, in which the government owns 71.6% stake, reported a net profit of INR 16.63 billion for the September quarter, up around 12% on year. Sequentially, the metric was up nearly 21%. The net profit was in line with INR 16.64 billion estimated by analysts.
The company's revenue for the quarter grew 11% on year and 38% sequentially to INR 66.28 billion, beating consensus expectations of INR 65.83 billion by a slight margin. Analysts had expected the company's top line for the quarter to grow steadily on the back of strong order book execution.
Following the company's earnings announcement during market hours, its shares erased early gains and closed 2.4% lower at INR 4,748.50 on the National Stock Exchange, losing more than INR 76 billion in market capitalisation. The company's current market capitalisation is over INR 3 trillion.
During the September quarter, the company's cost of raw materials increased 32% from the year-ago period to INR 40.72 billion, the slowest rise in such expenses reported in three quarters. Total expenditure of the public sector company during the quarter increased 17% to INR 52.97 billion. Changes in inventory increased to INR 12.73 billion in the reporting quarter from INR 7.74 billion a year ago.
For the six months ended September, the company's net profit increased 12% from a year ago to INR 16.63 billion and revenue increased almost 11% to INR 66.28 billion. Its total expenses increased 12% on year to INR 90.17 billion, of which 80% was cost of raw materials at INR 72.34 billion.
The Bengaluru-based Hindustan Aeronautics is engaged in design, development, manufacture, repair and overhaul of a wide range of aircraft, helicopters, and aero engines along with making industrial marine gas turbines. End
Edited by Ashish Shirke
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