WatchTalking point
Profit and cash flow diverged
Reported profit rose 9.0% but operating cash flow fell 20.1% — worth investigating whether the profit is being collected.
Importance 69 / 95 · cash quality
Hindustan Aeronautics Limited · Research view
Hindustan Aeronautics Limited
NSE: HALBSE: 541154ISIN INE066F01020Face value ₹5standalone
₹4,615
−1.18% · 2026-10-01 · 52-wk ₹3,487–₹5,099
Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
WatchTalking point
Cash conversion trending down
Cash conversion (CFO ÷ profit) has averaged 1.30× over the last 3 profit-making years versus 1.75× before that.
Importance 64 / 95 · cash quality
StrengthTalking point
Profit compounding faster than revenue
Over 4 years profit compounded at 15.7% a year while revenue compounded at 7.7% a year.
Importance 60 / 95 · growth
StrengthTalking point
Book value compounding
Net worth compounded at 20.7% a year over 4 years (₹19,317 → ₹41,045).
Importance 58 / 95 · financial health
Section 03 · The company
Who is this company?
Classified by the exchange under Industrials › Capital Goods › Aerospace & Defense › Aerospace & Defense.
- Market cap
- ₹3.09 L cr
- FY2026 revenue
- ₹33,090 cr
- FY2026 net profit
- ₹9,076 cr
- Net worth
- ₹40,863 cr
- Total debt
- ₹0 crnet cash
- EPS (basic)
- ₹135.71
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 3 aerospace & defense.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Strength
Over 4 years profit compounded at 15.7% a year while revenue compounded at 7.7% a year.
Rule PROFIT_CAGR_VS_REVENUE_CAGR
- Revenue growth per year
- +7.7%over 4 years
- Revenue growth
- +6.8%vs last year
- Net profit growth
- +9.1%vs last year
- Change in net profit since FY22
- +78%
Revenue has compounded at 7.7% a year over 4 years (₹24,620 → ₹33,089) — steady rather than rapid.
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q1 FY27 revenue was ₹5,515 cr, up 14.4% from ₹4,819 cr in Q1 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
Strength
Q1 FY27 net profit was ₹1,590 cr, up 14.9% from ₹1,384 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Strength
Q1 FY27 EBIT was ₹2,123 cr, up 15.1% from ₹1,844 cr a year earlier.
Rule QTR_OPERATING_PERFORMANCE_CHANGE_YOY
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 5,976 | — | 1,510 | — | 25.3% |
| Q3 FY25 | 6,957 | +14.8% | 1,440 | +14.1% | 20.7% |
| Q4 FY25 | 13,700 | −7.2% | 3,977 | −7.7% | 29.0% |
| Q1 FY26 | 4,819 | +10.8% | 1,384 | −3.7% | 28.7% |
| Q2 FY26 | 6,629 | +10.9% | 1,669 | +10.5% | 25.2% |
| Q3 FY26 | 7,699 | +10.7% | 1,867 | +29.6% | 24.2% |
| Q4 FY26 | 13,942 | +1.8% | 4,196 | +5.5% | 30.1% |
| Q1 FY27 | 5,515 | +14.4% | 1,590 | +14.9% | 28.8% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹33,785 crTTM
- EBITDA
- ₹13,866 crTTM
- EBIT
- ₹12,393 crTTM
- PBT
- ₹12,387 crTTM
- Net profit
- ₹9,321 crTTM
C. Corporate actions
14 Aug 2026DividendFinal Dividend - Rs. - 10.0000 — ₹10.00/share
18 Feb 2026DividendInterim Dividend - Rs. - 35.0000 — ₹35.00/share
21 Aug 2025DividendFinal Dividend - Rs. - 15.0000 — ₹15.00/share
18 Feb 2025DividendInterim Dividend - Rs. - 25.0000 — ₹25.00/share
21 Aug 2024DividendFinal Dividend - Rs. - 13.0000 — ₹13.00/share
20 Feb 2024DividendInterim Dividend - Rs. - 22.0000 — ₹22.00/share
28 Sept 2023Stock splitStock Split From Rs.10/- to Rs.5/- — 10:5
24 Aug 2023DividendFinal Dividend - Rs. - 15.0000 — ₹15.00/share
20 Mar 2023DividendInterim Dividend - Rs. - 20.0000 — ₹20.00/share
18 Nov 2022DividendInterim Dividend - Rs. - 20.0000 — ₹20.00/share
19 Aug 2022DividendFinal Dividend - Rs. - 10.0000 — ₹10.00/share
17 Feb 2022DividendInterim Dividend - Rs. - 26.0000 — ₹26.00/share
23 Nov 2021DividendInterim Dividend - Rs. - 14.0000 — ₹14.00/share
5 Mar 2021DividendInterim Dividend - Rs. - 15.0000 — ₹15.00/share
17 Dec 2020DividendInterim Dividend - Rs. - 15.0000 — ₹15.00/share
23 Mar 2020DividendInterim Dividend - Rs. - 33.2500 — ₹33.25/share
28 Mar 2019DividendInterim Dividend - Rs. - 19.8000 — ₹19.80/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Concern
ROE of 24.0% is the lowest in 4 years (prior range 26.1% to 28.9%).
Rule ROE_AT_MULTI_YEAR_LOW
- EBITDA margin now
- 40.7%
- 5-year range
- 26.0–40.7%
- ROE FY2026
- 24.0%
- ROCE FY2026
- 32.0%
EBITDA margin of 40.7% is the widest in 4 years (prior range 26.0% to 39.3%).
ROE declined from 26.1% to 24.0% year on year.
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Watch
Reported profit rose 9.0% but operating cash flow fell 20.1% — worth investigating whether the profit is being collected.
Rule PROFIT_UP_CASH_DOWN
Operating cash flowNet profit
- Total debt
- ₹0 crnet cash
- Operating cash flow ÷ net profit
- 1.20×FY2026
- Free cash flow
- ₹9,515 cr
- Current ratio
- 2.61×
Cash conversion (CFO ÷ profit) has averaged 1.30× over the last 3 profit-making years versus 1.75× before that.
Net worth compounded at 20.7% a year over 4 years (₹19,317 → ₹41,045).
Operating cash flow has matched or exceeded reported profit in 5 of the last 5 profit-making years (latest 1.20×).
Free cash flow has been positive in 5 of the last 5 years.
Section 08 · Relative position
How does it compare with peers?
Ranked against 3 aerospace & defense (FY2026, consolidated).
Revenue growth
HAL · 2nd of 3 · set median 6.8%
EBITDA margin
HAL · 1st of 3 · set median 31.2%
Return on equity
HAL · 2nd of 3 · set median 24.0%
P/E ratio
HAL · 1st of 3 · set median 45.6×
Context
Trades at 33.11× earnings — 27% below the aerospace and defense median of 45.60×.
Rule PE_BELOW_PEERS
- P / E
- 33.1×TTM to Jun 26
- P / B
- 7.5×latest book
- P / S
- 9.1×TTM sales
- Earnings yield
- 3.0%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 33.9× · P/S 8.4× · ROE 24.0%.
Section 09 · The stock
How has the stock performed?
Context
Over 4 years the stock returned 33.8% a year while profit compounded at 15.7% a year — the FY2022 base was somewhat depressed, so part of this is recovery rather than trend.
Rule STOCK_RAN_AHEAD · rebound
- 1-year return
- −3.9%
- 3-year return
- +139.3%
- 5-year return
- +589.8%
- From 52-wk high
- −9.5%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹4,809
- vs 200-day avg
- Above₹4,403
- RSI (14)
- 35.3neutral
- MACD histogram
- -30.3
- From 52-wk high
- −9.5%
- From 52-wk low
- +32.3%
- 30-day volatility
- 18.8%ann.
- 6-month return
- +26.3%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchProfit and cash flow divergedReported profit rose 9.0% but operating cash flow fell 20.1% — worth investigating whether the profit is being collected.PROFIT_UP_CASH_DOWN · conviction 69
- WatchCash conversion trending downCash conversion (CFO ÷ profit) has averaged 1.30× over the last 3 profit-making years versus 1.75× before that.CASH_CONVERSION_DETERIORATING · conviction 64
- ConcernReturns at a multi-year lowROE of 24.0% is the lowest in 4 years (prior range 26.1% to 28.9%).ROE_AT_MULTI_YEAR_LOW · conviction 57
- ConcernReturns decliningROE declined from 26.1% to 24.0% year on year.ROE_DETERIORATED_YOY · conviction 41
Data coverage is complete — 5 years of financials (FY2022–FY2026), full P&L, balance sheet and cash-flow statement, sector metrics fully mapped.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 24,620 | 26,928 | 30,381 | 30,981 | 33,090 |
| Total income | 25,607 | 28,600 | 32,279 | 33,546 | 36,794 |
| EBITDA | 6,399 | 8,335 | 11,637 | 12,162 | 13,472 |
| Profit before tax | 5,231 | 6,493 | 10,199 | 10,820 | 12,112 |
| Net profit | 5,087 | 5,811 | 7,595 | 8,317 | 9,076 |
| EPS (₹) | 152.1 | 173.8 | 113.6 | 124.4 | 135.7 |
| Net worth | 19,264 | 23,506 | 29,046 | 34,843 | 40,863 |
| Total debt | 0 | 0 | 0 | 0 | 0 |
| Operating cash flow | 10,040 | 8,836 | 8,226 | 13,645 | 10,920 |
| Free cash flow | 9,244 | 8,058 | 7,318 | 12,719 | 9,515 |
| Ratio | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth YoY | — | 9.4 | 12.8 | 2.0 | 6.8 |
| Profit growth YoY | — | 14.2 | 30.7 | 9.5 | 9.1 |
| Profitability | |||||
| EBITDA margin % | 26.0 | 31.0 | 38.3 | 39.3 | 40.7 |
| Net margin % | 19.9 | 20.3 | 23.5 | 24.8 | 24.7 |
| Return on equity % | 26.4 | 27.2 | 28.9 | 26.0 | 24.0 |
| Return on capital % | 27.5 | 30.6 | 38.9 | 33.9 | 32.0 |
| Leverage & cash | |||||
| Debt to equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash flow ÷ profit | 1.97 | 1.52 | 1.08 | 1.64 | 1.20 |
| Current ratio | 1.80 | 1.68 | 1.73 | 2.04 | 2.61 |