Shares of Hindustan Aeronautics Ltd (HAL) were trading 2.5% lower at ₹4,983.10 on Monday morning after the company’s earnings call post-market hours on Friday revealed muted revenue guidance for FY26. The stock hit an intraday low of ₹4,982, despite briefly touching ₹5,157.90 earlier in the session.

In its call, HAL guided for revenue growth of 8–10% in FY26, with a plan to revisit the outlook after six months. The company expects double-digit growth to resume from FY27, though it may be pulled forward to the current fiscal depending on execution. HAL also projects adjusted EBITDA margins at 31% over the next 3–4 years.

Brokerages react to HAL’s outlook:

Morgan Stanley

  • Rating: Downgrade to Equal-weight

  • Target Price: ₹5,092

  • View: While margins and new order flows remain strong, the muted revenue guidance has raised concerns about execution. The stock trades at 35x FY27E P/E, which limits upside, according to the brokerage.

Jefferies

  • Rating: Buy

  • Target Price: ₹6,475

  • View: HAL’s Q4 EBITDA was 4% above expectations, with margins surprising at 38.7%. The firm believes margins are sustainable at 30–31%, and sees the FY26 guidance as conservative.

JPMorgan

  • Rating: Overweight

  • Target Price: ₹6,105

  • View: The company’s visibility on ₹1 trillion worth of manufacturing orders over the next 1–2 years is a key positive. However, 8–10% revenue growth for FY26 is seen as underwhelming.

At 9:45 AM IST, HAL’s stock was down ₹144.60 or 2.82% on the NSE.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.

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