What is HAL's latest financial performance?

HAL, India's state-owned aerospace company, reported a 10.5% increase in its consolidated net profit to ₹1,669 crore for the second quarter ended September 30, 2025.

What major contract did HAL secure during the quarter?

HAL signed a contract worth more than ₹62,370 crore with the Indian Defense Ministry for the procurement of fighter jets.

Home / Business and Economy / HAL Soars with Robust Profits, Faces Margin Challenges

HAL Soars with Robust Profits, Faces Margin Challenges

Q: How did HAL's operating margins fare during the quarter?

HAL's earnings before interest, taxes, depreciation, and amortization (EBITDA) margin declined to 23.5% in the quarter compared to 27.4% a year ago, due to a 17.3% rise in total expenses.

12 Nov

•

Summary

HAL reports 10.5% rise in Q2 net profit to ₹1,669 crore
EBITDA margin drops to 23.5% from 27.4% a year ago
Secures ₹62,370 crore contract for fighter jet procurement

HAL Soars with Robust Profits, Faces Margin Challenges

On November 12, 2025, Hindustan Aeronautics Limited (HAL), India's state-owned aerospace and defense company, reported a 10.5% increase in its consolidated net profit for the second quarter ended September 30. The company's net profit rose to ₹1,669 crore ($189.89 million) from ₹1,510 crore in the same period last year, supported by strong order execution.

However, HAL's operating performance was impacted by weaker margins. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) margin declined to 23.5% in the quarter compared to 27.4% a year ago. This margin contraction was driven by a 17.3% rise in total expenses, primarily due to a 32.8% increase in the cost of materials consumed.

Despite the margin pressure, HAL's revenue grew by 10.9% to ₹6,629 crore during the quarter. The company's performance reflects the growing demand for defense equipment in India, as the government continues to push for self-reliance and modernization in the sector. In the Union Budget, the government allocated ₹6.81 trillion to the Defense Ministry and earmarked ₹1.8 trillion for local procurement.