Now Reading: HAL Q1 revenue up 14%, pins hopes on Tejas MK1A deliveries
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HAL Q1 revenue up 14%, pins hopes on Tejas MK1A deliveries
Hindustan Aeronautics Ltd reported 14% year-on-year standalone revenue growth in the June quarter to Rs 5,515 crore, beating analysts' expectations. Ebitda rose 19% to Rs 1,530 crore. The company's order book stood…
The Story in Brief
Hindustan Aeronautics Ltd reported 14% year-on-year standalone revenue growth in the June quarter to Rs 5,515 crore, beating analysts' expectations. Ebitda rose 19% to Rs 1,530 crore. The company's order book stood at Rs 2.54 trillion at the end of FY26, 7.5 times trailing 12-month sales.
HAL's growth hinges on deliveries of Tejas MK1A and HTT-40 aircraft. The first Tejas delivery is likely in the latter half of the fiscal after refinements. GE Aerospace is expected to supply 15-20 engines in FY27, against six in FY26. Nomura projects deliveries of 6, 16 and 20 aircraft in FY27, FY28 and FY29. HAL plans capital expenditure of Rs 14,000 crore over five years.
The Indian Opinion
The market's 45% rally in HAL's stock bets heavily on Tejas deliveries picking up, but the company missed its Ebitda margin guidance of 30-31% by a wide margin. The real test is whether GE engines arrive on time and the first Tejas is delivered as promised. Watch the next two quarters for delivery numbers, not just order announcements. If HAL delivers even 16 aircraft next fiscal, the re-rating is justified. If not, the stock's 29 times forward earnings will look stretched. How many airframes get completed by March will settle the debate.
Source: livemint.com
This story was synthesised by AI from the source linked above.
