HAL Q4 Results FY26: PAT Up 9% to ₹9,115 Cr, ₹35 Dividend Declared

Mumbai:  Hindustan Aeronautics Limited (HAL) , India's premier aerospace and defence PSU, has reported its Audited Financial Results for the quarter and year ended 31st March 2026, posting robust growth in profitability and rewarding shareholders with a hefty interim dividend.

The company's standalone Profit After Tax (PAT) for FY2025-26 stood at ₹9,075.67 Crore, registering a healthy increase from ₹8,316.80 Crore in the previous fiscal. On a consolidated basis, PAT reached ₹9,115.52 Crore.

Key Financial Highlights (Standalone) – FY2025-26

Key Financial Highlights (Consolidated) – FY2025-26

Dividend Announcement

The Board of Directors declared an Interim Dividend of ₹35 per equity share (Face value ₹5 each), representing 700% for the financial year 2025-26. The dividend was approved at the Board meeting held on 12th February 2026.

Q4 FY2026 Quarterly Performance (Standalone)

Key Operational & Strategic Highlights

Record Balance Sheet Growth

• Total Assets (Standalone): Increased to ₹1,32,223.81 Crore from ₹1,06,113.12 Crore (YoY growth of 24.61%)

• Total Equity (Standalone): ₹40,862.51 Crore (up 17.28% YoY)

• Cash & Cash Equivalents: ₹3,766.89 Crore (Standalone)

Material Accounting Events & Disclosures

1. Gratuity Ceiling Revision
Effective 1st October 2025, the gratuity ceiling was revised from ₹20 lakhs to ₹25 lakhs following a 50% increase in Industrial Dearness Allowance (IDA) to 51.80%. This resulted in an additional liability of ₹32,733 lakhs (₹327.33 Crore) recognized in Q4 FY26.

2. Pension Contribution Increase

• Executives: Company contribution increased from 7% to 10% of Basic Pay + DA w.e.f. 1st January 2017 (implemented during FY2023-24)

• Workmen: Increased from 7% to 10% w.e.f. 1st January 2025, resulting in an additional liability of ₹4,145 lakhs (₹41.45 Crore) for FY26

3. Pay Revision & Court Orders

• Hon'ble High Court of Karnataka set aside company circulars on recovery of excess salary payments

• ₹18,565 lakhs (₹185.65 Cr) for officers and ₹16,390 lakhs (₹163.90 Cr) for workmen were reversed from claims receivable during FY2025-26

• Employees' cost for the current year is NOT comparable with previous year due to these one-time reversals

4. Offset Credit Benefits (One-time Gain)
Following C&AG observation and Expert Advisory Committee opinion, HAL recognized Offset Credit Benefits of:

• Revenue recognized: ₹11,317 lakhs (₹113.17 Cr)

• Intangible Assets: ₹10,841 lakhs

• Net profit increase: ₹9,527 lakhs (₹95.27 Cr)

• Applied prospectively as per Ind AS 8 (impractical for retrospective application)

5. Inventory Loss Due to Flood (LCA TD Store)

• Company-owned inventory loss of ₹1,033 lakhs – fully settled by insurance in March 2026

• Customer-owned inventory: Provision reduced from ₹5,590 lakhs to ₹1,091 lakhs – excess ₹4,499 lakhs reversed

6. FPQ Pricing (Formula Price Quotations)

• 4th PPRC (Price Revision) under progress

• FY2025-26 FPQ sales recognized provisionally using FY2024-25 prices without escalation (conservative basis)

7. New Labour Codes
Effective 21st November 2025 – impact assessed as not material and recognized based on actuarial valuation.

Auditor's Report Highlights

Statutory Auditor: Gupta Nayar & Co., Chartered Accountants (Firm Reg. No. 008376N)

Opinion: Unmodified (Clean) on both Standalone and Consolidated Financial Results for the quarter and year ended 31st March 2026.

Emphasis of Matter (Key Observations):

Supplementary Audit

The audited financial results for FY2025-26 are subject to supplementary audit by the Comptroller & Auditor General of India (C&AG) under Section 143(6) of the Companies Act, 2013.

Stock Exchange Filing Details

• BSE Scrip Code: 541154

• NSE Symbol: HAL

• Board Meeting: Commenced at 10:00 AM, concluded at 12:35 PM on 14th May 2026

• Regulation: Filed under SEBI LODR Regulation 33