HAL shares tumbled 3% after the results as margins miss guidance despite profit growth

Shares of Hindustan Aeronautics Limited (HAL) on Wednesday fell as much as 3.3% to Rs. 4,701 as the state-run defense major’s September-quarter results missed company guidance on operating margin and most key metrics missed Street estimates.

HAL’s consolidated net profit in the July-September quarter rose 10.5% year-on-year to Rs. 1,669 crore, which was Rs. 1,510 crores. While income from operations increased by 10.9% to Rs. 6,629 crore, in line with expectations, with profitability weighing on sentiment.

Margin below guidance

The company’s EBITDA margin for the quarter declined to 23.5%, from 27.4% in the same period last year. For the first half of the current fiscal, the margin was 24.8%, well below HAL’s full-year guidance of 31%. EBITDA last year was Rs. 1,640 crore down 5% to Rs. 1,558 crores.

While topline growth was steady, cost pressures and execution times continued to impact margins.

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Technical is still supportive

HAL shares are up 14% year to date in 2025. From a technical perspective, the stock continues to trade above all major moving averages ranging from the 5-day to the 200-day SMA, indicating underlying bullish momentum.

The Relative Strength Index (RSI) at 59.6 indicates neutral territory, while the Moving Average Convergence Divergence (MACD) at -6.9 remains above the center line, suggesting that the stock’s long-term uptrend remains intact despite near-term pressure.

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