Hindustan Aeronautics shares fall over 4%, extend three-day decline to 11%; brokerages flag weak Q4 results- Grow Mudra

Hindustan Aeronautics shares fall over 4%, extend three-day decline to 11%; brokerages flag weak Q4 results

18 May , 2026 By : Debdeep Gupta

Shares of Hindustan Aeronautics fell nearly 5 per cent in Monday's trade, extending losses to over 11 per cent in the last three sessions, as weaker-than-expected March quarter earnings and continued concerns over delayed Tejas Mk1A deliveries weighed on investor sentiment.

The stock dropped as much as 4.66 per cent to Rs 4,181.60 on NSE in early trade on Monday morning.

The sharp decline comes even after HAL reported a 5.5 per cent year-on-year rise in net profit at Rs 4,196 crore for the March quarter, compared with Rs 3,977 crore in the year-ago period. Revenue from operations rose 1.7 per cent to Rs 13,942 crore.

While headline profit beat estimates due to higher treasury income and other income, brokerages flagged operational weakness and execution concerns. Other income jumped 76.6 per cent year-on-year to around Rs 1,151 crore, cushioning pressure on core margins.

Jefferies retained its 'Buy' call with a target price of Rs 6,300 but noted that March quarter EBITDA was 10 per cent below estimates due to a 9 per cent revenue miss.

The brokerage also lowered its FY27-FY28 earnings estimates by 3-8 per cent, citing weaker gross margins. However, it said the stock could see a recovery if Tejas Mk1A aircraft deliveries begin over the next three months.

UBS maintained its 'Sell' rating with a target price of Rs 3,200, highlighting that despite management's earlier guidance, no Tejas deliveries have materialised so far, raising concerns over execution and long-term growth visibility.

CLSA kept its 'Outperform' rating with a target price of Rs 5,265. It said HAL's earnings were supported by engine deliveries, helicopters, and treasury income, while pointing to the start of Mk1A deliveries and clarity on the GE Aerospace engine deal as key near-term triggers.

Concerns around the Tejas programme have also been publicly flagged by Air Chief Marshal Amar Preet Singh. Speaking at a public event last year, Singh had said, "So, once a timeline is given, not a single project that I can think of has been completed on time. So, this is something we must look at. Why should we promise something which cannot be achieved? While signing the contract itself, sometimes we are sure that it is not going to come up, but we just sign the contract."