HAL Q3 FY26 Results: Net Profit Soars 29% to ₹1,852 Cr

Mumbai: The Board of Directors of Hindustan Aeronautics Limited (HAL), India's premier aerospace and defence PSU, today approved the audited financial results for the quarter and nine months ended December 31, 2025. The company delivered stellar earnings growth and announced a handsome interim dividend for shareholders.

Q3 FY26 Standalone: Key Financial Highlights

Net Profit: Surged 29.3% to ₹1,851.72 Crore, up from ₹1,432.60 Crore in Q3 FY25.
Revenue from Operations: Grew 10.7% to ₹7,698.87 Crore.
Profit Before Tax: Rose 21.5% to ₹2,471.87 Crore.
Earnings Per Share (EPS): Stood at ₹27.69 for the quarter.
Total Comprehensive Income: Increased to ₹1,880.31 Crore.

Nine-Month FY26 Standalone Performance

For the nine-month period (April-December 2025), HAL continued its robust trajectory:

Net Profit: Jumped 12.2% to ₹4,891.39 Crore.
Revenue: Grew 10.8% to ₹19,146.47 Crore.
EPS for 9M: Stood at ₹73.14.

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Consolidated Performance

The consolidated results mirrored the standalone strength:

Q3 Net Profit: ₹1,866.66 Crore (up 29.7% YoY).
9M Net Profit: ₹4,919.48 Crore (up 12.1% YoY).
9M EPS (Consolidated): ₹73.56.

Interim Dividend Declaration

Rewarding its shareholders, the Board declared a first interim dividend of ₹22 per equity share (440% on face value of ₹5) for FY 2025-26. The company has fixed Wednesday, 18 February 2026 as the Record Date. The dividend will be paid on or before 14 March 2026.

TDS Update for Shareholders: Shareholders seeking lower or nil TDS deduction must submit Form 15G/15H and PAN details to the RTA, KFin Technologies, on or before the record date.

Operational & Strategic Highlights

FPQ Pricing: Pending finalisation of the 4th PPRC, revenue has been provisionally recognised using indexed previous prices. Final adjustments will be made upon price finalisation.
Gratuity Ceiling Revision: Following the IDA revision to 51.80%, the gratuity ceiling was raised from ₹20 lakh to ₹25 lakh effective 1 October 2025, resulting in an additional liability of ₹331.93 Crore, impacting employee cost comparability.
Labour Codes: The company has assessed the impact of the four new Labour Codes (effective 21 November 2025) as not material, with necessary adjustments recognised in these results.
Pay Revision & Court Case: While the salary recovery matter for officers has been settled per High Court order, the case for workmen remains pending. An amount of ₹182.16 Crore is held as claims receivable, awaiting final verdict.
Insurance Claim: Excess provision of ₹36.94 Crore towards flood-damaged inventory was reversed following retrieval of customer-owned items.
C&AG Observation: The matter regarding accounting of offset credit benefits has been referred to ICAI's Expert Advisory Committee; opinion awaited.
Income Tax Refund: The company received a refund of ₹423.02 Crore for AY 2011-12 on 11 December 2025.

Auditor's Observations & Compliance

The Statutory Auditors issued an unmodified opinion on the results. However, the audit report drew attention to:

Non-compliance with SEBI LODR and Companies Act provisions regarding Board composition and committee constitution (since rectified w.e.f. 2 June 2025).
Going concern observations for joint ventures HATSOFF Helicopter Training and HALBIT Avionics, with managements affirming ability to continue operations.
Closure proceedings for joint ventures Infotech HAL (under CIRP) and Multirole Transport Aircraft (voluntary liquidation process initiated).

Outlook

HAL's Q3 performance underscores strong execution and demand momentum in the defence sector. With a healthy order book, improving operational efficiencies, and continued government focus on indigenous defence manufacturing, the company remains well-positioned for sustained growth. The generous dividend declaration reflects management confidence and shareholder commitment.