Hindustan Aeronautics Limited (HAL) reported a 16% year-on-year (YoY) increase in consolidated net profit to ₹1,935.64 crore for the second quarter of FY27, compared with ₹1,669.05 crore in the corresponding quarter last year.
The defence and aerospace company’s consolidated revenue from operations increased 14.85% YoY to ₹7,613.25 crore in Q2 FY27, against ₹6,628.61 crore in Q2 FY26.
Consolidated total income rose approximately 14.4% to ₹8,601.55 crore from ₹7,516.28 crore in the year-ago quarter. However, operating margins witnessed some moderation during the reporting period as expenditure increased at a slightly faster pace than revenue.
Hindustan Aeronautics Q2 Results : Key Financial Highlights
- Consolidated revenue from operations: ₹7,613.25 crore, up 14.85% YoY.
- Consolidated net profit: ₹1,935.64 crore, up 16% YoY.
- Consolidated total income: ₹8,601.55 crore, compared with ₹7,516.28 crore in Q2 FY26.
- Consolidated EBITDA: Approximately ₹1,738 crore, up 11.6% YoY.
- EBITDA margin: 22.8%, compared with 23.5% in the corresponding quarter last year.
- Standalone net profit: Approximately ₹1,839 crore, up 10.6% YoY.
- Standalone revenue from operations: Approximately ₹7,613 crore, up 14.9% YoY.
Revenue Growth Supported by Defence Project Execution
HAL’s revenue growth during the September quarter reflects continued execution of its defence and aerospace programmes.
The company manufactures aircraft, helicopters, aero-engines, avionics and other aerospace systems for India’s defence forces. Its financial performance is closely linked to the execution of existing orders, production schedules and delivery milestones.
The increase in quarterly revenue indicates higher business activity compared with the corresponding period last year.
Profitability Improves, but EBITDA Margin Contracts
HAL’s consolidated EBITDA increased 11.6% year-on-year to approximately ₹1,738 crore from ₹1,557 crore in Q2 FY26.
However, EBITDA growth remained below revenue growth. Consequently, the company’s EBITDA margin declined to 22.8% from 23.5% in the year-ago quarter.
Total expenditure increased 15.77% YoY to ₹6,132.02 crore during the quarter, compared with ₹5,296.64 crore in Q2 FY26.
The increase in operating expenses, alongside the slower growth in EBITDA, indicates some pressure on operating profitability despite higher revenue and net profit.
Standalone Financial Performance
On a standalone basis, Hindustan Aeronautics reported net profit of approximately ₹1,839 crore in Q2 FY27, compared with ₹1,662 crore in the corresponding quarter last year, registering growth of approximately 10.6%.
Standalone revenue from operations increased approximately 14.9% year-on-year to ₹7,613 crore from ₹6,628 crore.
The standalone results also reflected growth in revenue and profitability during the quarter.
ICRA Withdraws Credit Ratings on ₹6,050 Crore Bank Facilities
In a separate development, ICRA Limited withdrew its credit ratings assigned to HAL’s bank facilities following a request from the company.
The withdrawn ratings covered long-term fund-based facilities worth ₹4,000 crore, which carried an ICRA AAA (Stable) rating, and short-term non-fund-based facilities worth ₹2,050 crore, which carried an ICRA A1+ rating.
The total bank facilities covered under the withdrawal amounted to ₹6,050 crore.
According to ICRA, the withdrawal followed the receipt of no-objection certificates from the company’s bankers. The rating agency also stated that it had no information indicating a change in HAL’s credit risk since its previous rating review.
Defence Orders and Project Deliveries Remain Key Growth Drivers
HAL continues to play an important role in India’s defence manufacturing ecosystem, supplying aircraft, helicopters, engines and related equipment to the Indian armed forces.
The company’s earnings are influenced by the execution of large defence contracts, production schedules and timely delivery of equipment.
Going forward, the execution of existing programmes, progress on new defence orders and the conversion of its order pipeline into revenue will remain important factors for its business performance.
Conclusion
Hindustan Aeronautics delivered a positive second-quarter performance, with consolidated net profit increasing 16% year-on-year to ₹1,935.64 crore and revenue from operations rising 14.85% to ₹7,613.25 crore.
However, the contraction in EBITDA margin from 23.5% to 22.8% indicates some pressure on operating profitability despite higher revenue and EBITDA.
Going forward, investors and market participants will monitor defence order execution, project deliveries, operating margins and the company’s ability to sustain revenue growth.
Source: Hindustan Aeronautics Limited’s Q2 FY27 consolidated and standalone financial results filed with the stock exchanges on November 12, 2026, and related company disclosures.
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