Hindustan Aeronautics (HAL) Q4 24/25 earnings summary

Executive summary

• Achieved Maharatna status, becoming the first defense PSU to do so and the 14th CPSC overall.

• Delivered the first AL-31FP engine for Sukhoi Su-30MKI within a month of contract signing.

• Audited standalone and consolidated financial results for the quarter and year ended 31 March 2025 were approved, with unmodified opinions from statutory auditors.

• Resolved a major sales tax dispute with Maharashtra, resulting in a final settlement of INR 2,471 crore, fully reimbursed by the Indian Air Force.

• Secured new orders totaling INR 125,280 crore and received certifications for upgraded aircraft and successful missile tests.

Financial highlights

• Standalone revenue from operations for FY25: ₹30,98,092 lakh; consolidated: ₹30,98,095 lakh.

• Turnover increased to INR 30,105 crore from INR 28,162 crore, a 7% year-over-year rise.

• Standalone net profit after tax for FY25: ₹8,31,680 lakh; consolidated: ₹8,36,405 lakh.

• Profit before tax reached INR 10,820 crore, representing 35% of revenue.

• Standalone EPS for FY25: ₹124.36; consolidated EPS: ₹125.07.

Outlook and guidance

• Revenue growth guidance for FY26 is 8%-10%, with expectations of double-digit growth from next year onward.

• EBITDA margin expected to be maintained at 31% at the operating level, with overall EBITDA (including other income) at 38%-39%.

• Order pipeline valued at around INR 1,00,000 crore, expected to materialize in 1-2 years.

• Capacity ramp-up for LCA Mk1A and helicopters to support higher deliveries in coming years.

• Employee costs for FY25 are not comparable to previous years due to pension and pay scale revisions.