HAL Share Price / The stock that PM Modi praised did wonders and earned so much profit!

HAL Share Price: Hindustan Aeronautics Limited (HAL), a leading government company under the Ministry of Defense, manufactures important defense equipment such as fighter aircraft and helicopters for India. Aircraft like Tejas and Dhruv are symbols of HAL's technological capability and contribution to the defense sector. During Operation Sindoor, HAL's weapons gave a befitting reply to Pakistan, which has been praised by Prime Minister Narendra Modi himself. Recently, the company has released the financial results for the June 2025 quarter, after which its shares saw a rise of about 3% on Wednesday.

Financial performance: Profit declines, but revenue jumps

HAL reported a net profit of ₹ 1,383.77 crore in the June 2025 quarter as against ₹ 1,437.14 crore in the same quarter last year. However, this is a huge drop of 65.2% as compared to ₹ 4,347.50 crore in the previous quarter (March 2025). The reason for this decline is being attributed to seasonal effects and differences in project delivery.

Despite this, the company's operating income (revenue) increased by 10.8% to ₹4,819.01 crore. Total income also increased by 9.5% to ₹5,566.10 crore. This growth is the result of better project delivery and strong demand. HAL's total net worth in the financial year ended March 2025 was ₹34,985.17 crore, reflecting its strong financial position.

The company's operating margin stood at 26.7% with an annual growth of 10.8%, which is better than market expectations. This shows that HAL's operational performance remains strong despite the reduction in profits.

Positive stance of brokerage firms

Brokerage houses are optimistic about the future of HAL. Nuvama Institutional Equities called the June quarter results better than expected and has a "buy" rating on HAL shares, with a target price of ₹6,000. They estimate that the company's revenue growth could be 21% annually between FY25 and 2028, while earnings per share (EPS) could grow by 11%.

Motilal Oswal has also taken a positive stance on HAL and has a target price of ₹5,800. He cited the company's strong order book and delivery of Tejas fighter jets as the key reasons for future growth. Global brokerage firms such as Morgan Stanley, CLSA, and JPMorgan are also bullish on HAL stock. CLSA has an "outperform" rating and said that HAL could benefit significantly from large fighter jet orders and engine supplies.

HAL's strengths and future prospects

HAL's strong order book, especially the growing demand for the Tejas fighter jet and other defense equipment, is a huge opportunity for the company. Under the Government of India's Atmanirbhar Bharat Abhiyan, HAL has been given the important responsibility of promoting indigenous technology in the defense sector. Apart from this, the company's export potential and growing interest in international markets can also accelerate its growth.

However, risks such as seasonal fluctuations in profits and delays in project delivery also exist. Still, HAL's strong financial position, technical expertise, and government support make it a trusted name in the defense sector.

Advice for investors

Brokerage firms believe that HAL shares are trading at attractive valuations based on FY26 and FY27 estimated earnings. The company's long-term growth prospects, especially the growing demand in the defense sector and the emphasis on indigenization, make it an attractive option for investors.

Disclaimer: This article is for information purposes only and should not be taken as investment advice. Consult your financial advisor before investing.