- 01 Apr 2025
- ICICIdirect Research
HINDUSTAN AERONAUTICS (HAL) HAS RECORDED REVENUE OF RS 30400 CRORE (PROVISIONAL & UNAUDITED) FOR FY25
HAL - 4488 Change: -121.40 (-2.63 %)News: Hindustan Aeronautics (HAL) has recorded revenue of Rs 30400 crore (provisional & unaudited) for FY25 as compared to Rs 30381 crore in FY24. The company has highlighted that there was a shortfall in deliveries of LCA (light combat aircraft) Tejas MK1A due to un-availability of engines and ALH (advanced light helicopters) due to accident in Jan-25 and subsequent grounding of fleet. On the orders front, the company has secured the Rs 62700 crore contract of 156 Light Combat Helicopters (LCH) Prachand (including training and equipment) from the Ministry of Defence (MoD). Of these, 66 LCHs are for Indian Air Force while 90 are for Indian Army. For the full year FY25, HAL has secured total orders of Rs 119500 crore (manufacturing contracts worth Rs. 1,02,000 crores and ROH contracts of Rs. 17,500 crores)
View: Revenue growth remained flattish in FY25 as the execution has been impacted in production of LCAs and ALHs. Implied revenue for Q4FY25 stands at ~Rs.13100 crore (-11% YoY). However, with the supply chain issues stabilising and capacities expansion (across aircrafts, helicopters, aero-engines), execution is expected to pick-up substantially in coming period. The LCH contract has also been timely placed with HAL, which will be executed by FY30. Order backlog stands at Rs 1,84,000 crore (6x FY25 revenue) as of Mar-25 end provides healthy revenue growth visibility. Moreover, orders pipeline remains robust considering the contracts of additional 97 Tejas Mk1A (expected order value of ~Rs 65000 crore), Sukhoi upgrades are also expected to be placed soon with the company
Impact: Neutral