HAL share price jumps over 3% after Q3 results 2025, 500% interim dividend

Stock Market Today: Hindustan Aeronautics ( HAL) share price jumped over 3% during the intraday trade on Thursday, a day after the company announced its Q3 results 2025. Apart from the earnings announcement, HAL also declared a 500% interim dividend.

Hindustan Aeronautics Ltd share price opened at ₹3,605 on the BSE on Thursday, slightly higher than the previous close of ₹3596.15. HAL share price thereafter gained further to the intraday highs of ₹3730.90, which mean gains of 3.7% over the previous close.

Despite today's rally, HAL stock has corrected significantly from its 52-week or 1-year high of ₹5,675. 

Hindustan Aeronautics (HAL) Q3 Results

In the third quarter of FY25 or the October-December 2024 quarter, HAL, the state-run defence company, posted a net profit of ₹1,432.6 crore, up 14.3% from ₹1,253.5 crore in the same period last year.

HAL's operating revenue climbed 14.8% year-over-year (YoY) to ₹6,956.9 crore from ₹6,060.9 crore in the corresponding quarter last year.

At the operational level, EBITDA (earnings before interest, tax, depreciation, and amortization) increased by 17.2% to ₹1,681 crore in the quarter that ended in December 2024 from ₹1,434 crore in the same period of the previous fiscal year.

Additionally, the EBITDA margin increased by 50 basis points (bps) YoY from 23.7% to 24.2% in Q3FY25.

HAL Dividend Details

The Board of Directors of HAL declared the first interim dividend of ₹25 per equity share of ₹5/- each fully paid up (which translates into a 500% dividend considering the face value) for the Financial Year 2024-25.

The record date for the payment of the first interim dividend is fixed as Tuesday, February 18. The dividend will be paid to all the eligible shareholders on or before March 14.

Analyst views

Antique Stock Broking said that Hindustan Aeronautics delivered strong overall performance despite supply-side challenges it has been facing from GE for GE 404 engines for its Tejas Mk-1A fighter aircraft. It remains confident of HAL's business prospects as India is in the middle of modernizing its armed forces due to obsolescence and prevailing adverse geopolitical situation, leading to strong orders for fighter aircrafts and helicopters from the Indian Armed Forces. 

HAL, as per Antique, should deliver 11% earnings CAGR over FY24-27E. Given the strong business outlook, it has retained a BUY rating on the PSU defence stock.

Prabhudas Lilladher analysts believe that HAL’s execution on the deliveries of Tejas Mk1A aircraft will be a key monitorable in the coming quarter. However, HAL is a long-term play on the growing strength and modernisation of India’s air defence given it is the primary supplier of India’s military aircraft. A long-term sustainable demand opportunity owing to the government’s push on indigenous procurement of defence aircraft, a robust order book with a 3-year pipeline of more than ₹2 lakh crore and a leap in HAL’s technological capabilities due to the development of advanced platforms (Tejas, AMCA, GE-414 & IMRH engines, etc.), coupled with improvement in profitability via scale & operating leverage make the brokerage bullish on the stock. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.