HAL shares gain 3% even after FY26 revenue growth misses guidance

Shares of Hindustan Aeronautics Ltd. (HAL) were trading with gains of as much as 3% on Wednesday, April 1, after the company reported its provisional business update for financial year 2025-26.

HAL posted revenue of ₹32,250 crore for FY26, a growth of 4% year-on-year, below its earlier guidance of 8-10%. The company had reported revenue of ₹30,981 crore in the previous year.

The company said growth came despite delays in deliveries of Light Combat Aircraft (LCA Mk1A) and HTT-40 due to supply chain disruptions linked to geopolitical and technical challenges.

However, this was partly offset by faster deliveries of ALH helicopters, AL31-FP and RD-33 engines, along with other products and services, helping sustain revenue and profitability.

HAL's order book remained strong at around ₹2.54 lakh crore, compared to ₹1.89 lakh crore a year ago, in line with its guidance.

The increase was driven by key contracts from the Ministry of Defence, including 97 LCA Mk1A aircraft worth ₹62,370 crore, along with orders for helicopters and Dornier aircraft.

The company said its robust order pipeline provides revenue visibility for the next 7-8 years, supported by steady demand for manufacturing, repair and overhaul (ROH), and spares.

Management highlighted that improved manufacturing capabilities, a stabilising supply chain, and diversification into the civil segment position HAL for stronger growth in FY27 and beyond.

During the year, HAL paid an interim dividend of ₹35 per share for FY26 and a final dividend of ₹15 per share for FY25, taking the total payout to ₹3,344 crore.

Shares of HAL ended Monday's session 2.75% lower at ₹3,490 and are down 21% so far this year.