HAL stock lifts off on earnings surprise

₹1.84 trn order book stokes optimism as brokerages see up to 38% upside

- TANMAY TIWARY

India's leading defence equipment maker Hindustan Aeronautics (HAL) saw its shares rally on Wednesday after the public sector major's April-June quarter (Q1) 2025-26 (FY26) earnings surprised the Street with robust margins and solid execution. On the BSE, HAL's stock rose as much as 3.66 per cent to an intraday high of 4,567.2 before closing 2.69 per cent higher at 4,524.2. In comparison, Sensex ended 0.38 per cent higher at 80,539.91.

Despite a slight dip in net profit, the defence public sector undertaking's strong operational performance and upbeat brokerage guidance have stoked bullish sentiment, with some analysts projecting as much as 38 per cent upside from current levels.

HAL's revenue rose 10.8 per cent year-on-year (Y-o-Y) to ₹4,819 crore, indicating steady execution despite a modest revenue miss. Net profit declined 4.11 per cent Y-o-Y to ₹1,377 crore in Q1FY26, compared to ₹1,436 crore in the same quarter last year (2024-25/FY25), but still came in ahead of expectations. Bloomberg had pegged Q1 revenue and net profit estimates at ₹4,996 crore and ₹1,205 crore, respectively.