Updated 14 May 2025 at 15:05 IST
HAL Share Price: Shares of Hindustan Aeronautics Limited (HAL) surged nearly 3% on Wednesday after the company announced its Q4 results.
The rally in HAL's stock came despite a year-on-year (YoY) decline in quarterly profit.
HAL reported a net profit of Rs 3,958 crore for the quarter ended March 31, 2025, down 7.8% from Rs 4,292 crore in Q4 FY24. However, the profit soared 176% on a quarter-on-quarter (QoQ) basis from Rs 1,432 crore in Q3 FY25.
Total income for Q4 FY25 stood at Rs 14,352 crore, down 6.4% YoY but sharply higher, by 89%, from Rs 7,588 crore in the previous quarter. The company’s earnings per share (EPS) for the quarter were Rs 59.19, slightly lower YoY but nearly tripled from Rs 21.42 in Q3 FY25.
For the full financial year FY25, HAL reported a 2% increase in revenue at Rs 30,981 crore, compared to Rs 30,381 crore in FY24. Net profit for the year rose 9.5% to Rs 8,316.80 crore, up from Rs 7,595 crore last year. The annual EPS improved to Rs 124.36.
Despite some concerns over its net liabilities, HAL assured investors of its ability to continue operations, citing positive operational cash flows and plans to phase out liabilities.
Beyond the numbers, HAL's order book has seen a massive jump—from Rs 94,129 crores at the beginning of the year to Rs 1,84,000 crores by year-end.
This includes Rs 1,02,000 crores in new manufacturing contracts and Rs 17,500 crores in repair and overhaul (ROH) work.
A standout deal was the Rs 62,777 crore order from the Ministry of Defence (MoD) for 156 LCH ‘Prachand’ helicopters—HAL’s single biggest contract ever.
Additionally, FY25 saw HAL becoming the first defence PSU to receive ‘Maharatna’ status.
The company also secured contracts for 12 more Su-30 MKI aircraft, mid-life upgrades for 40 Do-228 aircraft, and avionics enhancements for an IL-78 aircraft.
“On technical charts, HAL has formed a base around the Rs 4,400 level and is showing strong momentum,” said Sugandha Sachdeva, Founder of SS WealthStreet. “The stock is comfortably trading above key moving averages and Bollinger mid-band support of Rs 4,337, indicating a bullish trend.”
According to Sachdeva, HAL could see its stock price rise towards Rs 5,000 in the medium term, with Rs 4,380 as the near-term support. If this level breaks, the stock may test Rs 4,100. However, strong fundamentals and a robust defence pipeline limit the downside.
Disclaimer: The views expressed in this article are purely informational, and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks, and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds.
Published 14 May 2025 at 14:59 IST