Hindustan Aeronautics Limited (HAL) has announced its financial results for the quarter and nine months ended December 31, 2025. The Board approved the results on February 12, 2026. Key highlights include significant performance improvements across both standalone and consolidated metrics for the period, though certain operational factors related to employee costs and inventory loss from floods require specific accounting treatment and disclosure.
HAL Announces Financial Results for Q3 FY2025-26
The Board of Directors of Hindustan Aeronautics Limited approved the unaudited financial results for the quarter ended December 31, 2025, and for the nine months ended the same date, following a Board meeting held on February 12, 2026. The meeting commenced at 11:00 hours and concluded at 13:05 hours.
Standalone Financial Performance Summary (Q3 Ended Dec 31, 2025)
On a standalone basis, the figures demonstrate robust revenue generation:
- Total Income: ₹8,61,238 Lakhs for the quarter ended Dec 31, 2025, compared to ₹7,58,808 Lakhs in the corresponding quarter last year (Dec 31, 2024).
- Net Profit After Tax: ₹1,85,172 Lakhs for the quarter, up from ₹1,43,260 Lakhs in Q3 FY2024.
- Earnings Per Share (Basic/Diluted): ₹27.69 for the quarter.
Consolidated Financial Performance Summary (Q3 Ended Dec 31, 2025)
The Group’s performance across subsidiaries and joint ventures shows healthy growth:
- Total Income: ₹8,61,260 Lakhs for the quarter, compared to ₹7,58,871 Lakhs in Q3 FY2024.
- Net Profit After Tax: ₹1,86,666 Lakhs for the quarter, compared to ₹1,43,979 Lakhs in the same period last year.
- Earnings Per Share (Basic/Diluted): ₹27.91 for the quarter.
Key Operational Notes and Adjustments
Several significant notes impact comparability and required management assessment:
Pension Contribution Hike
The Ministry conveyed approval to increase the pension contribution for Executives from 7% to 10% of Basic Pay + DA, effective 01.01.2017. A similar increase for Workmen from 7% to 10% became effective 01.01.2025. This resulted in an additional liability of ₹3,217 Lakhs for the nine months ended 31.12.2025, impacting employee cost comparability.
Pay Revision and Recovery Issues
Following directives on pay scale revision effective 01.01.2017, the company initiated recovery of excess salaries paid to Ex-officers. Following a favorable court verdict for Officers, differential amounts withheld were released in 2024-25. For Workmen, recovery of ₹1,828 Lakhs for the period ended 31.12.2025 is reflected, with final decisions pending the court order.
Flood Damage Inventory Provision
Due to floods in September 2022, inventory damage occurred. HAL has re-assessed the loss for customer-owned items to ₹1,896 Lakhs (previously ₹5,590 Lakhs), leading to the reversal of excess provision by ₹3,694 Lakhs, with no damaged inventory remaining on the books as of 31.12.2025.
PRP Recovery Waiver
The Board approved a waiver of ₹4,318 Lakhs in excess Performance Related Pay (PRP) paid to Executives for the years 2009-10 to 2011-12, following recommendations from the C&AG regarding retrospective recovery difficulties.
Forward Pricing for Future Sales (FPQ)
For FPQ sales for 2025-26 (up to 31.12.2025), provisional recognition was based on the 2024-25 price, pending receipt of final indices from the customer.
Notes on Joint Ventures
Concerns regarding the HATSOFF Helicopter Training Private Limited going concern basis remain due to net liability exceeding assets by ₹10,018.62 Lakhs, although management affirms the ability to meet obligations based on multi-year Defence contracts and ongoing funding pursuit with bankers.
Dividend Proposal
The Board is scheduled to consider the declaration of the first interim dividend for the financial year 2025-26 at its next meeting on February 12, 2026.
Source: BSE
