HAL Q3 FY26 Results Explained: All You Need to Know

Hindustan Aeronautics Limited (HAL) reported a strong set of numbers for the quarter ended 31 December 2025. Revenue grew in double digits and profit rose sharply compared to last year. On the surface, the results look impressive. But a closer look at margins and quarter-on-quarter performance gives deeper insight.

Strong Profit Growth, Better Margins

If you are tracking HAL, the Q3 FY26 numbers give you a clear signal. The company has not just grown revenue, it has improved profitability at a faster pace.

For the quarter ended 31 December 2025, HAL reported consolidated revenue from operations of ₹7,698.8 crore, compared to ₹6,957.31 crore in the same quarter last year. That is a healthy 10.65% year-on-year growth. But the bigger story is on the profit side.

Net profit for the quarter came in at ₹1866.66 crore, up from ₹1439.79 crore last year. That is nearly 29.64 percent growth. When profit grows almost three times faster than revenue, it usually means margins are expanding. Earnings per share also improved sharply to ₹27.91 from ₹21.53 a year ago.

What Do the Margins Tell You?

To understand the quality of growth, margins matter more than just revenue. HAL’s profit after tax margin for Q3 FY26 stands at about 24.24 percent, compared to roughly 20.69 percent in Q3 FY25. That is an improvement of nearly 3.5 percentage points.

This tells you that HAL was able to control costs better and extract higher operating leverage during the quarter. In simple terms, more of every rupee earned turned into profit.

For investors, margin expansion is often more important than revenue growth because it improves long-term earnings power.

How Did It Perform Compared to Last Quarter?

If you compare Q3 with Q2 of the same financial year, the improvement becomes even clearer. Revenue rose from about ₹6,628.61 crore in Q2 to ₹7,698.8 crore in Q3. That is over 16.14% sequential growth.

Net profit also increased from ₹1,669.05 crore in Q2 to  ₹1,866.66  crore in Q3, reflecting around 11.83 percent quarter-on-quarter growth. This shows momentum in execution rather than a one-off jump.

Dividend Update

HAL has declared its first interim dividend for FY26 of ₹35 per equity share of ₹5 each, which represents a 700% payout on face value. The record date is 18 February 2026 and the dividend will be paid on or before 14 March 2026.

For long-term investors, this is another positive sign. The company continues to generate enough cash to reward shareholders while maintaining growth.

What Should You Take Away From This?

If you are looking at HAL from an investor’s perspective, there are three important points.

• First, revenue growth remains steady in double digits. That shows demand and order execution are intact.
• Second, profit growth is much stronger than revenue growth. That signals improving efficiency and operating leverage.
• Third, the sequential improvement from Q2 to Q3 suggests momentum going into the final quarter of the year.
• Overall, this quarter strengthens HAL’s position as a profitable defence manufacturing player with improving margins. 
• The key question now is whether this margin expansion can be sustained in the coming quarters, especially as large defence orders move through execution cycles.

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