Overview

• HAL management projects FY26 sales growth of 8-10% and an EBITDA margin of 31%, supported by a robust Rs 1.9 lakh crore order backlog.
• Nomura India raised its target price for HAL by 30% to Rs 6,100, citing a 59% CAGR in manufacturing revenues forecasted through FY28.
• UBS downgraded HAL to Neutral with a Rs 5,600 target, citing longer timelines for major orders and limited near-term upside.
• The resolution of GE F404 engine delays has normalized HAL's supply chain, enabling a manufacturing ramp-up for key defence projects.
• HAL’s share price has surged 26% over six months, reflecting investor optimism despite recent Q4 FY25 profit and revenue declines.