HAL stock falls over 10% in a month ahead of Q1 results amid concerns over engine supplies and LCA Mk1A order clarity. Brokers expect solid YoY revenue and PAT growth supported by execution of its large order book.
India’s Hindustan Aeronautics Limited (HAL) saw its shares fall 2.36% to ₹4,341 on the BSE today, extending the decline to 10.42% over the past month—a stark contrast to the BSE Sensex’s 2.16% drop. Investor caution prevails ahead of the Company’s Q1 result announcement. Key areas under scrutiny include timely GE-404 engine supplies and the outlook for repeat orders of the LCA Mark 1A fighter jet.
Analysts at Nomura forecast a 16.6% year-on-year rise in adjusted net profit to ₹1,198.8 crore, driven by an 11% boost in revenue to ₹4,825 crore. EBITDA is expected at ₹1,107 crore, maintaining margin stability near 22.9%. Other income growth and controlled depreciation suggest a roughly 17% PAT growth.
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Motilal Oswal Financial Services projects even stronger momentum—21% YoY revenue growth and a 120-basis-point margin expansion—supported by rising indigenization and supply chain normalization. Execution of the substantial ₹1.8 lakh crore order pipeline remains vital for delivering these outcomes.
HAL’s stock performance in the coming days will likely hinge not just on the reported numbers, but more critically, on commentary regarding critical program timelines and supply chain clarity—factors that could significantly sway investor confidence.
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