HAL Q3 Results Live Updates: Good Q3 but engine woes continue, says Elara Securities

Elara Securities said, “!Hindustan Aeronautics (HNAL IN) revenue saw a positive surprise in Q3FY25, likely driven by delivery of trainer aircraft and helicopters. The company expects 12 Tejas Mk1A aircraft to be delivered by FY26. But our checks with suppliers indicate possible headwinds to this target.

We reduce our EPS by 6% each in FY25E and FY26E to factor in further delay in delivery of Tejas Mk 1A aircraft. We lower our TP to INR 5,160 from INR 5,465 on 40x (from 42x) December FY26E P/E due to delayed delivery. However, we retain Buy, due to robust order visibility led by rising share of indigenization with unexplored exports opportunity in the aircraft & helicopter industry, which is positive for HNAL in the long term. We expect an earnings CAGR of 14% during FY24-27E with a 23% ROE during FY25-27E.”