Hindustan Aeronautics Ltd (HAL) reported an almost 8% decline in its consolidated profit for the fourth quarter, primarily attributed to delays in the supply of its Tejas light combat aircraft. The state-owned aerospace and defense firm posted a profit of ₹39.77 billion ($465.9 million) for the three-month period ending March 31, down from ₹43.09 billion in the same quarter last year.
Analysts had anticipated pressure on HAL’s revenue this quarter, citing postponements in the delivery schedule of the Tejas Mk 1A jets. This came despite steady defense sector demand and ongoing order activity throughout the period.
Revenue for the March quarter dropped by 7.2% to ₹137 billion, slightly better than Elara Securities’ projected 8% decline. Still, the figures reflect the operational impact of the delays in HAL’s flagship fighter jet program.
Shares of HAL, which have risen around 6% since late April amid heightened tensions between India and Pakistan following a deadly attack in Kashmir, were up 2.6% following the earnings announcement.
In a key development during the quarter, HAL secured fresh orders totaling ₹627 billion for the production and supply of 156 Prachand light combat helicopters, strengthening its order book and signaling continued confidence in its defense manufacturing capabilities.
