Hindustan Aeronautics (HAL) is in the spotlight again. After announcing its Q4 results for FY25, the defence giant saw brokerages rushing to review their stance. While the numbers showed a dip in profit and revenue, experts remain bullish on India’s aircraft maker-in-chief.
So—should you jump in, cash out, or just hold your fire?
What the Q4 Results Reveal
Let’s start with the facts. HAL reported a 7.7% drop in profit, falling to ₹3,977 crore in Q4FY25 from ₹4,309 crore last year. Revenue dropped by 7.2% to ₹13,700 crore. The reason? A delay in delivering the Tejas Mk 1A light combat aircraft. Not ideal for headlines—but not exactly a nosedive either.
Yet, beneath the short-term turbulence lies a powerful long-term engine: HAL’s order book has doubled, soaring from ₹94,000 crore last year to a whopping ₹1.89 lakh crore in April 2025. That’s not just a backlog—it’s a runway.
Why Investors Should Care
For everyday investors, this paints a mixed picture. On one hand, HAL’s current numbers are down. On the other, its future looks explosive—quite literally. With defence spending on the rise, especially amid geopolitical tension with Pakistan, India is betting big on self-reliance in defence.
If India wants to flex muscle, Hindustan Aeronautics builds the biceps.
And HAL is doing more than just building jets—it’s diversifying with helicopters (143 ALH), naval aircraft (10 Dorniers), and ramping up R&D with over 10 centres focused on indigenous tech. The company isn’t just following the Make in India script—it’s rewriting it.
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What the Experts Say
Let’s decode the brokerage calls:
- Jefferies raised its price target from ₹4,715 to ₹6,475, sticking to its buy call. It sees HAL’s 30-31% margins and strong service income as reasons for double-digit growth for years.
- Motilal Oswal also maintained a buy but warned that the stock may have risen too fast, too soon. After all, HAL has been soaring on the wings of war hype, not just earnings.
- Nuvama went further, calling HAL “perfectly placed” to benefit from global and domestic defence tailwinds. It also bumped its target to ₹6,000, citing heavy investments in R&D.
So while short-term risks exist, nobody’s hitting “eject” on HAL just yet.
What’s the Catch?
The stock has had a sharp rally recently. That’s both a sign of confidence and a red flag for timing. Investors who get in late may end up riding the turbulence. As Motilal Oswal hinted, the current risk-reward isn’t ideal—at least not for fresh entry.
Still, if you’re holding HAL, analysts say you’re sitting pretty. If you’re eyeing a buy, it may be smart to wait for a dip—defence demand isn’t going anywhere, and HAL isn’t running out of fuel.
HAL may have had a soft landing this quarter, but the flight path ahead looks clear. India’s defence future is domestic, and Hindustan Aeronautics is the cockpit. With a near-₹2 lakh crore order book and solid long-term growth plans, it’s hard not to be impressed.
But let’s not let chest-thumping patriotism blind smart investing. The jet’s flying high—but smart passengers check the weather before boarding.
Disclaimer:
This article is for information only and not financial advice. Please do your own research or talk to a financial expert before investing. Investing has risks, and past results don’t guarantee future success.
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