Hindustan Aeronautics Limited (HAL) shares surged 2.34% on Wednesday, trading at ₹3,678.40, up ₹84.25 from the previous close of ₹3,594.15. The stock opened at ₹3,615.00, hit an intraday high of ₹3,697.90, and a low of ₹3,611.05.
HAL Q3 Results: Strong earnings and margin expansion
Hindustan Aeronautics Ltd (HAL) reported a net profit of ₹1,432.6 crore in Q3FY25, marking a 14.3% YoY growth from ₹1,253.5 crore in the same quarter last year. The company’s revenue from operations surged 14.8% YoY to ₹6,956.9 crore, compared to ₹6,060.9 crore in Q3FY24.
At the operational level, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) grew 17.2% YoY to ₹1,681 crore, up from ₹1,434 crore in the same quarter last fiscal year. The EBITDA margin improved by 50 basis points (bps) to 24.2% in Q3FY25, compared to 23.7% in Q3FY24, reflecting improved operational efficiency.
HAL dividend announcement
HAL’s Board of Directors has declared the first interim dividend of ₹25 per equity share of face value ₹5 each for the Financial Year 2024-25.
Morgan Stanley bullish on HAL
Morgan Stanley has maintained an ‘Overweight’ rating on HAL, revising its target price to ₹4,958 from ₹5,135. The brokerage firm remains optimistic about HAL’s healthy revenue growth and strong order book. It noted that order inflows for the first nine months of FY25 remain robust, driven by demand for Sukhoi engines and aircraft contracts.
Morgan Stanley further highlighted that HAL is expected to receive orders worth ₹1,65,000 crore. Additionally, the company aims to roll out its first LCA Tejas MK-1A fighter jet from its Nashik facility by the end of FY25, a significant milestone in India’s defense manufacturing sector.
What lies ahead for HAL stock?
With strong Q3 results, dividend declarations, and Morgan Stanley’s bullish outlook, HAL remains in focus. Investors and analysts may continue to monitor earnings growth, defense sector developments, and order inflows as key factors influencing the stock’s movement.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult their financial advisors before making any investment decisions.
