HAL Share Price Target: State-run defence major Hindustan Aeronautics Limited (HAL) has received a ‘Buy’ recommendation from analysts, with an upside potential of nearly 18 per cent. While the company reported largely flat revenue growth in the March quarter due to delays in Light Combat Aircraft (LCA) deliveries, its long-term outlook remains optimistic, backed by a strong order pipeline and improving execution prospects.
HAL has received a ‘Buy’ recommendation from analysts, with a revised target price of Rs 5,432, implying an upside potential of nearly 18 per cent from the current market price of Rs 4,610.
Brokerages expect HAL’s revenue, EBITDA and PAT to grow at a compound annual growth rate (CAGR) of 18 per cent, 19 per cent and 14 per cent between FY26 and FY28.
Despite the stock trading at a one-year forward price-to-earnings (P/E) multiple of 26.1x — higher than its historical five-year average of around 20x — analysts have retained a ‘Buy’ rating and raised the target price by 13 per cent from Rs 4,800 earlier to Rs 5,432.
The higher valuation reflects strong order visibility, improving execution prospects and HAL’s increasing strategic role in India’s defence ecosystem. Analysts also believe the technology transfer agreement with GE for F414 engines for the LCA Mk-2 programme could reduce foreign dependence and speed up execution in the medium term.
Additionally, HAL’s expanding collaboration with Rolls-Royce Holdings is expected to strengthen India’s indigenous aero-engine manufacturing capabilities over the long term.
HAL Retains FY27 Growth Guidance
HAL management has maintained its FY27 revenue growth guidance at around 10–12 per cent, while EBITDA margins are expected to remain in the range of 30–31 per cent.
The company expects deliveries of LCA Mark-1A aircraft to begin from August or September 2026, supported by a commitment from GE Aerospace to supply an additional 15–20 engines during the fiscal year.
Management has also highlighted an order pipeline of nearly Rs 90,000 crore expected over the next two years. Key projects include ALH helicopters, the Light Combat Helicopter (LCH), the HTT-40 trainer aircraft, SU-30 upgrade programmes, and DO-228 contracts.
HAL reported revenue of Rs 13,900 crore, EBITDA of Rs 5,100 crore, and profit after tax (PAT) of Rs 4,200 crore for the fourth quarter of FY26. Revenue and PAT increased by 2 per cent and 6 per cent year-on-year, respectively, while EBITDA declined 5 per cent due to muted topline growth and a higher cost base.
The company’s performance during the quarter remained under pressure mainly because of the absence of LCA Mk-1A aircraft deliveries. However, deliveries of ALH Dhruv helicopters and AL-31FP engines, along with steady growth in Repair & Overhaul (RoH) services, helped partially offset the shortfall.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions)
