Q2 FY27 results analysis · November 12, 2026
Hindustan Aeronautics Ltd (HAL) Q2 FY27 Results Analysis: PAT Grows 16%, Margin Misses Guidance
+10.6%PAT year on year, Rs. 1,839.04 Cr
Source: Quarterly results filing (BSE)
Quick summary
Hindustan Aeronautics Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 7,613.11 Cr (+14.85% YoY) and PAT growth of +10.62% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 12, 2026 |
|---|---|
| Revenue (Q2) | Rs. 7,613.11 Cr (+14.85% YoY) |
| PAT (Q2) | Rs. 1,839.04 Cr (+10.62% YoY) |
| EBITDA margin | 22.83% (-66 bps YoY) |
| EPS (Q2) | Rs. 27.50 (+10.62% YoY) |
Quarter Snapshot
HAL delivered 14.85% YoY revenue growth and 15.97% consolidated PAT growth in Q2, running ahead of its 10-12% FY27 revenue guidance, but operating EBITDA margin of 22.83% (ex-other income) sits well below the guided 30-31% band, making the margin target a stretch requiring an implied ~35% H2 margin. The quarter reflects an execution ramp: an Rs.8,653 Cr H1 inventory build cut CFO/PAT to 0.46x, while LCA Mk1A volume recognition remains the key swing factor. Auditor emphasis-of-matter items on provisional FPQ pricing (4th PPRC pending three years) and board-composition non-compliance persist.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Q2 revenue | "in-line overall on offsets"; Q1 cushion to H1 | Revenue +14.85% YoY, +38.04% QoQ; H1 +14.68% | Played out |
| LCA Mk1A revenue in Q2 | "little or no big-ticket LCA revenue recognition in Q2" | Filing silent on LCA deliveries/programme revenue — filing | Not observable |
| Margins | "roughly flat to mildly compressing" | Q2 ex-OI margin 22.83% vs 23.49% (−66 bps); H1 24.87% vs 24.82% (+5 bps) | Played out |
| FX headwind | buffered by inventory; lands later | Filing silent on FX — filing | Not observable |
| HTT-40 first deliveries | "appears on track" | Filing silent — filing | Not observable |
| DAC AoN → contract | "in-principle approval, not a contract" | No order disclosure in filing — filing | Not observable |
| Margin definitional clarity (watch item) | sought | Resolved arithmetically: "Operating EBITDA" = PBT+Fin+D&A−other income reproduces both the FY26 30% claim and the pre-call note's Q1 27.68% | Played out |
| PPRC/FPQ normalisation (watch item) | — | Still provisional per EoM — open for the call — carried | Open |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Revenue growth +10–12% FY27 | Q4 FY26 earnings call ("double-digit revenue growth") | H1 standalone +14.68%; Q2 +14.85% | On Track |
| Operating EBITDA margin 30–31% FY27 | Q4 FY26 earnings call ("Operating EBITDA was at 30% of the revenue") | H1 24.87% (Q2 22.83%) vs FY26's 29.52% on the same basis — needs ~Rs.7,655 Cr of H2 EBITDA(op), +10.5% YoY, an implied ~35% H2 margin | Stretch |
| Order inflow ~Rs.90,000 Cr over two years | Q4 FY26 earnings call | No order book/inflow disclosure in filing; DAC AoN (08 Sep 2026) is in-principle only | Too Early |
| HATSOFF 50% acquisition within 60 days of 02 Oct 2026 | Share Transfer Agreement announcement | Not completed at 30 Sep 2026; still a JV — window runs to ~01 Dec 2026 | On Track |
| "Our diversified portfolio has enabled balanced growth" | Q4 FY26 call | Q2 revenue +14.85% YoY without LCA revenue; ROH/engine/other programmes carrying growth — revenue line | Confirmed |
| Margin recovery with LCA volumes | Q4 FY26 call (analyst question left unanswered) | Ex-OI margin 22.83% in Q2, below FY26's 29.52%; H1 flat YoY — LCA volumes not yet flowing | Too Early |
| FPQ conservatism pending 4th PPRC | filing note + auditor EoM | Still provisional in H1 FY27 | Confirmed as ongoing |
Key Numbers, Quarter by Quarter
| Metric | 1 Apr 2025 | 31 Mar 2026 | Q2 FY27 |
|---|---|---|---|
| Total order book (Rs. Cr) | 1,89,302 | 2,54,538 (+34.46%) | Not disclosed |
Key Investment Insights
Key Positives
- Q2 standalone revenue grew 14.85% YoY to Rs.7,613.11 Cr; H1 at +14.68%, above management's guided 10-12% FY27 band
- Consolidated PAT to owners grew 15.97% YoY to Rs.1,935.67 Cr; basic EPS Rs.28.94 vs Rs.24.96 (+15.95%)
- Share of JV profit jumped to Rs.96.52 Cr in Q2 vs Rs.7.34 Cr in Q2FY26, driving consolidated outperformance over standalone
- H1 operating EBITDA (ex-other income) grew 14.89% YoY to Rs.3,264.48 Cr with margin flat YoY at 24.87% vs 24.82%
- Company is debt-free with Rs.47,448.80 Cr of liquid resources (cash Rs.6,919.74 Cr plus bank balances Rs.40,529.06 Cr)
- Provisions fell 15.23% YoY in Q2, helped by lower liquidated-damage provisions; other expenses grew only 0.70% YoY
- Required H2 revenue growth to meet FY27 guidance is only +7.52% to +10.56% vs H2 FY26
- Net worth rose 6.97% in H1 to Rs.43,715.16 Cr (standalone)
Risk Factors
- Operating EBITDA margin (ex-other income) of 22.83% in Q2 is 66 bps below Q2FY26 and well below the guided 30-31% FY27 band; hitting guidance requires an implied ~35% H2 margin
- H1 CFO/PAT of 0.46x with an Rs.8,757.66 Cr inventory build and Rs.2,462.62 Cr receivables/other-asset growth
- Net material cost absorbed 47.11% of revenue vs 44.00% a year ago, the single biggest margin drag
- FPQ sales continue on 2024-25 provisional prices with the 4th PPRC pending over three years; direction of eventual price true-up undisclosed (auditor EoM)
- Independent-director vacancies persist at 30 Sep 2026, causing non-compliance with Regulation 17(1) and Companies Act provisions (auditor EoM)
- HATSOFF JV has current liabilities exceeding current assets by Rs.76.53 Cr with net-worth erosion; HAL extended a Rs.625.20 Cr inter-company loan post-period to settle its ECB
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Companies on this page
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.