HAL shares fall 3% after the results as margins miss expectations despite earnings growth

Shares of Hindustan Aeronautics Ltd (HAL) fell as much as 3.3% to Rs 4,701 on Wednesday after the state-owned defense company’s quarterly results showed operating margins falling short of company guidance and missing Street estimates on most key metrics.HAL’s consolidated net profit rose 10.5% year-on-year to Rs 1,669 crore for the July-September quarter, compared to Rs 1,510 crore a year earlier. While revenue from operations rose 10.9% to Rs 6,629 crore, in line with expectations, pressure on profitability weighed on sentiment.

Margins below the guideline

The company’s EBITDA margin for the quarter fell to 23.5%, compared to 27.4% in the same period last year. For the first half of the current financial year, the margin was 24.8%, well below HAL’s annual expectation of 31%. EBITDA fell 5% to Rs 1,558 crore, compared to Rs 1,640 crore last year.

While revenue growth was stable, cost pressures and execution timing continued to impact margins.

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The technical data is still supportive

HAL stock continues to rise 14% so far in 2025. From a technical perspective, the stock continues to trade above all of its major simple moving averages, from the 5-day to the 200-day SMA, indicating underlying bullish momentum.

The Relative Strength Index (RSI) of 59.6 indicates neutral territory, while the Moving Average Convergence Divergence (MACD) of -6.9 remains above the midline, suggesting the stock’s longer-term uptrend remains intact despite short-term pressure. Also read | Tata Motors Commercial Vehicles shifts into top gear on debut after demerger. Here are 7 takeaways from the list (Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)