Shares of Hindustan Aeronautics Ltd (HAL) were higher in the morning after the company announced its first quarter 2027 earnings. At 10:15 a.m. the stock was up 0.90%, and it remains 0.28% above Rs 5,008.80 as of now. Analysts from Nomura, CLSA and Citi are optimistic, pointing to the LCA Tejas Mk1A deliveries as a major catalyst.
HAL reported a 15% year‑on‑year increase in standalone net profit, rising to Rs 1,581 crore from Rs 1,377 crore in the same quarter last year. Revenue from operations grew about 14% to Rs 5,515 crore, while EBITDA climbed 19% to Rs 1,530 crore. However, on a sequential basis, profit fell 62% from Rs 4,184 crore in March.
Nomura said the company’s performance beat estimates on all fronts, with revenue 6% above its forecast and EBITDA 10% higher than consensus. The brokerage highlighted a Rs 2.54 trillion order backlog for FY26, including Rs 2.3 trillion in manufacturing orders, and a book‑to‑bill ratio of 25. Nomura raised its target price to Rs 6,314 and kept a ‘Buy’ rating, expecting PAT to grow at a 19% CAGR from FY26 to FY29.
CLSA gave HAL an ‘Outperform’ rating and a target of Rs 5,481. It praised the higher engine and helicopter deliveries, treasury income and expanding margins that pushed PAT ahead of estimates. CLSA noted the cash pile rose 21% to $49 billion and sees LCA Mk1A deliveries in the second half of FY27 and a possible engine production deal as key catalysts.
Citi also maintained a ‘Buy’ rating with a target of Rs 5,550. The brokerage highlighted that Q1 PAT beat estimates, with revenue and EBITDA both ahead of forecasts. Citi said that LCA deliveries could trigger a re‑rating by removing a key overhang, while strong margins and a fast‑moving order pipeline remain positive.
Overall, HAL’s strong quarterly results and a robust order book give analysts confidence in future growth. The upcoming LCA Tejas Mk1A deliveries and potential engine deals are seen as the main drivers for the stock’s upward trajectory.