By 📈 HAL Reports Higher Quarterly Profit
State-owned aerospace and defense company Hindustan Aeronautics Limited (HAL) posted a 10.5% rise in consolidated net profit for the second quarter, reaching ₹16.69 billion ($189.89 million) for the three months ending September 30, 2025.
The growth was driven by strong order execution, reflecting India’s ongoing push for self-reliance and modernization in defense production.
💰 Operating Margins Decline
Despite the profit increase, HAL’s operating performance faced pressure.
The company reported an EBITDA margin of 23.5%, down from 27.4% in the same quarter last year.
Total expenses rose 17.3%, primarily due to a 32.8% increase in material costs. HAL had earlier projected annual EBITDA margins around 31%.
Following the results, HAL shares fell 3% in early trading.
✈️ Key Contracts and Strategic Moves
During the quarter, HAL signed major defense contracts, including:
- Procurement of fighter jets worth over ₹623.7 billion with the Defense Ministry
- Technology transfer agreements with ISRO and other space-related government agencies
These deals align with India’s local procurement push, backed by the ₹6.81 trillion defense budget, including ₹1.8 trillion earmarked for domestic acquisition.
📊 Revenue Growth
HAL reported a 10.9% increase in revenue, totaling ₹66.29 billion, driven by higher defense orders and strategic collaborations.
🔹 Industry Context
Peers such as Bharat Electronics also reported strong quarterly profits in late October, reflecting a robust defense manufacturing sector in India.
India’s defense modernization program continues to support public sector defense contractors, reinforcing the country’s Make in India for Defense initiative.
