HAL

Brokerage firm Motilal Oswal expects HAL's revenue to decline 4% YoY, mainly due to the delay in deliveries of HTT-40 and LCA Mk1A. It further anticipates EBITDA margin to contract 840bp YoY due to disrupted supply chains and an increase in the share of manufacturing in overall revenue. According to the brokerage firm, key monitorables include the status of deliveries of Tejas Mk1A and HTT-40, updates on CATS warrior drone systems, NWC cycle, as well as execution ramp, any major provisions made, and margin sustainability. The defence company had reported an order book of ₹2.54 trillion for FY26. “We cut our estimates and TP to ₹5,000 to factor in the lower pace of deliveries of Tejas Mk1A and other projects,” the firm said in a note.