HAL Q4FY25 Results: Consolidated Net Profit Dips by 8%

State-run defence equipment manufacturer Hindustan Aeronautics Ltd. (HAL) reported a decline in consolidated net profit and revenue for the March quarter of the last financial year (Q4 FY25). This quarterly dip contrasts with a strong performance over the full financial year, indicating a potentially lumpy revenue recognition cycle typical of the defence sector.

Quarterly Performance Overview

For the fourth quarter of FY25, HAL reported a consolidated net profit of ₹3,976.66 crore, marking a 7.71% year-on-year (YoY) decline from ₹4,308.71 crore in Q4 FY24. Consolidated revenue from operations also decreased by 7.24% YoY to ₹13,699.85 crore, down from ₹14,768.75 crore in the corresponding quarter of the previous fiscal year. This revenue figure, rounded to ₹13,700 crore, was higher than the company's provisional update projection of ₹13,118 crore.

On a standalone basis, the company's profit saw a nearly 8% YoY decline to ₹3,958.25 crore in Q4 FY25 from ₹4,292.04 crore, with standalone revenue dropping 7% to ₹13,699.87 crore from ₹14,768.78 crore.

Full Year FY25 Highlights

The company's consolidated profit for FY25 rose by 9.75% YoY to ₹8,364.13 crore, up from ₹7,621.05 crore in FY24. Full-year consolidated revenue from operations also saw an increase of 2% YoY, reaching ₹30,980.95 crore compared to ₹30,381.08 crore in the previous fiscal year.

Operational Efficiency and Margins

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for Q4 FY25 stood at ₹5,292 crore, a decline of 10% from the year-ago period. The EBITDA margin for the quarter was 38.6%. On a year-on-year basis, the EBITDA margin narrowed by 140 basis points.

Future Outlook and Order Book

HAL's provisional business update previously highlighted significant new contracts, including manufacturing contracts worth ₹1.02 lakh crore and Repair and Overhaul (RoH) contracts valued at ₹17,500 crore. More recently, the company signed a major contract with the Ministry of Defence for the supply of 156 Light Combat Helicopters (LCH) Prachand, worth ₹62,777 crore. Looking ahead, Hindustan Aeronautics is targeting a substantial order book worth up to ₹2.6 lakh crore for the financial year 2026.

Following the results announcement on May 14, shares of HAL are trading at ₹4,719.20

with an increase of 2.37%. 

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