Rs 2.54 Lakh Crore Order Book: India’s Biggest Defence Company Reports FY26 Growth, Announces Rs 3,344 Crore Dividend and Expands Capacity

On Thursday, Indian markets opened on a negative note, with the Nifty 50 declining 2.04 per cent to trade at 22,261 in the morning session. However, by 3:00 PM, the index recovered from its Intraday low of 22,182 to trade at 22,660, marking a recovery of approximately 2.15 per cent. Amid this broader rebound, Hindustan Aeronautics (HAL) also recovered from its low of Rs 3,551 to trade at Rs 3,654, resulting in a recovery of around 2.90 per cent during the session.

The stock remained in focus after the company’s business update, which highlighted steady revenue growth and a strong Order Book for FY26.

HAL reports Rs 32,250 crore FY26 revenue; order book rises to Rs 2.54 lakh crore

Hindustan Aeronautics reported a provisional and unaudited revenue of Rs 32,250 crore for the financial year ended March 31, 2026, compared to Rs 30,981 crore in the previous year, resulting in a growth of approximately 4.1 per cent. supported by higher deliveries of engines and helicopters despite programme-level supply disruptions. The company highlighted that challenges in the LCA Mk1A and HTT-40 programmes, due to geopolitical and technical supply chain issues, impacted operations during the year. However, increased deliveries of ALH helicopters, AL31-FP and RD-33 engines, along with other products and services, supported revenue and profitability.

HAL’s order book increased to approximately Rs 2.54 lakh crore as of March 31, 2026, compared to Rs 1.89 lakh crore at the beginning of the year after accounting for order execution. The growth was driven by major contracts from the Ministry of Defence, including 97 LCA Mk1A aircraft, six ALH CG helicopters, and eight Dornier CG aircraft, providing long-term revenue visibility over the next seven to eight years.

On the operational front, the company commissioned its third LCA Tejas production line and a second HTT-40 production line at its Nasik facility. It also marked its entry into civil aviation with the maiden flight of the Dhruv NG helicopter, while the first series production HTT-40 aircraft completed its initial flight.

During the year, HAL signed a memorandum of understanding with Mishra Dhatu Nigam to establish a strategic metal Bank for critical raw materials and entered into an agreement with PJSC-UAC in Moscow for the production of the SJ-100 civil aircraft. Additionally, the company secured an order from Pawan Hans for 10 Dhruv NG helicopters and delivered two Hindustan-228 aircraft to Jags Aviation, Guyana, ahead of schedule.

HAL pays Rs 3,344 crore dividend

During the year, HAL paid an interim dividend of Rs 35 per equity share (face value of Rs 5) for FY26, amounting to Rs 2,341 crore. In addition, it paid a final dividend of Rs 15 per equity share (face value of Rs 5) for FY25, amounting to Rs 1,003 crore. The total cash outflow towards dividends during the year stood at Rs 3,344 crore.

HAL expands renewable energy capacity; launches scholarship initiative with IIT Madras

Reinforcing its focus on sustainability, HAL established a cumulative renewable energy capacity of 50.15 MW, meeting around 40 per cent of its electricity requirements through renewable sources. On the CSR front, the company launched a HAL Endowment Scholarship Scheme in partnership with IIT Madras to support meritorious students from economically weaker sections for a period of 15 years. Additionally, it sponsored a mountaineering expedition to South America as part of its broader social initiatives.

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Disclaimer: The article is for informational purposes only and not investment advice.