Hindustan Aeronautics Ltd: Reports Stellar Results, Announces Dividend & Bags Rs 2,312 Crore Order

Hindustan Aeronautics Limited (HAL) reported a strong financial performance for the third quarter of the 2025-26 fiscal year, characterised by steady top-line growth. The company's revenue from operations climbed 10.65 per cent to reach Rs 7,698.8 crore, compared to Rs 6,957.31 crore in the same period last year. This growth was mirrored in the company’s operating efficiency, as Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 11.2 per cent to Rs 1,871 crore. The EBITDA margin remained stable, edging up slightly to 24.30 per cent from 24.18 per cent in the previous year.

The aerospace and defence major saw a significant boost in its bottom line, recording a 29.64 per cent increase in consolidated profit after tax (PAT), which rose to Rs 1,866.68 crore. On a standalone basis, the net profit surged 29.3 per cent to Rs 1,851.72 crore, yielding an earnings per share (EPS) of Rs 27.69 for the quarter. These results contributed to a robust nine-month performance for the period ending December 2025, during which the consolidated net profit reached Rs 4,919.48 crore, marking a 12.1 per cent increase year-on-year.

In a move to reward its shareholders, the Board of Directors declared the first interim dividend for the financial year. The dividend is set at Rs 35 per equity share (representing a 700 per cent payout on the face value of Rs 5), though separate standalone filings also noted an approval for Rs 22 per share. The record date to determine eligible shareholders is Wednesday, February 18, 2026, with payments expected to be disbursed on or before March 14, 2026. This announcement follows a quarter of strategic adjustments, including a revised gratuity ceiling that resulted in an additional liability of Rs 331.93 crore and the receipt of an income tax refund worth Rs 423.02 crore.

Beyond the balance sheet, HAL continues to strengthen its role in national security and the "Make-in-India" initiative. On February 12, 2026, the Ministry of Defence signed a contract worth Rs 2,312 crore with HAL’s Transport Aircraft Division for the acquisition of eight Dornier 228 aircraft for the Indian Coast Guard. This project is expected to bolster India's maritime security architecture while providing significant support to the domestic MSME ecosystem and creating long-term opportunities in maintenance, repair, and overhaul services.

About the Company

Hindustan Aeronautics Ltd (HAL), a leading Indian defence company, excels in the design, manufacturing, repair and overhaul of aircraft and helicopters. Organised into three key segments—Manufacturing, Services and other activities—HAL boasts 20 production and overhaul divisions and nine R&D centres across India, prioritising indigenous programs like the HTT-40 Basic Trainer Aircraft and Light Utility Helicopter (LUH). Notably, HAL achieved the prestigious 'Maharatna' status on October 14, 2024, becoming the first Defence Public Sector Undertaking (PSU) to earn this distinction, signifying enhanced operational and financial autonomy.

The President of India’s portfolio owns the majority of the stake, i.e., 71.64 per cent as of December 2025 and DIIs increased their stake to 9.68 per cent in December 2025 compared to September 2025. The company has a market cap of over Rs 2.80 lakh crore and has maintained a healthy dividend payout of 31.4 per cent with a strong order book of Rs 1,89,300 crore. The stock gave multibagger returns of 250 per cent in 3 years and a whopping 700 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.