HAL Q1 FY27 Net Profit Rises 15% YoY

Revenue from Operations: ₹5,515.28 Cr (Q1 FY27) vs ₹4,819.14 Cr (Q1 FY26) - 14.4% YoY growth
Other Income: ₹902.81 Cr (Q1 FY27) vs ₹748.94 Cr (Q1 FY26)
Total Income: ₹6,418.09 Cr (Q1 FY27) vs ₹5,568.08 Cr (Q1 FY26)
Profit Before Tax: ₹2,125.28 Cr (Q1 FY27) vs ₹1,847.69 Cr (Q1 FY26) - 15.0% YoY growth
Net Profit: ₹1,580.61 Cr (Q1 FY27) vs ₹1,377.15 Cr (Q1 FY26) - 14.8% YoY growth
EPS (Basic): ₹23.63 (Q1 FY27) vs ₹20.59 (Q1 FY26)

Revenue from Operations: ₹5,515.17 Cr (Q1 FY27) vs ₹4,819.01 Cr (Q1 FY26)
Other Income: ₹900.24 Cr (Q1 FY27) vs ₹747.09 Cr (Q1 FY26)
Total Income: ₹6,415.41 Cr (Q1 FY27) vs ₹5,566.10 Cr (Q1 FY26)
Profit Before Tax: ₹2,134.33 Cr (Q1 FY27) vs ₹1,854.31 Cr (Q1 FY26)
Net Profit: ₹1,589.66 Cr (Q1 FY27) vs ₹1,383.77 Cr (Q1 FY26)
EPS (Basic): ₹23.77 (Q1 FY27) vs ₹20.69 (Q1 FY26)

Board paid one interim dividend of ₹35 per equity share (700% of face value) during FY2025-26
Board recommended a final dividend of ₹10 per equity share (200% of face value) for FY2025-26
Both dividends subject to shareholder approval at ensuing Annual General Meeting

Flood Damage Settlement (Note 3):

Company-owned inventory damaged in September 2022 flood: Actual loss assessed at ₹10.33 Cr
Full insurance settlement of ₹10.33 Cr received in March 2026
Customer-owned inventory: Initial loss assessment ₹55.90 Cr reduced to ₹10.91 Cr after OEM feedback
Excess provision of ₹44.99 Cr reversed by March 2026
Provision of ₹10.91 Cr maintained as future liability for customer-owned inventory replacement

Gratuity Liability Revision (Note 8):

Gratuity ceiling increased from ₹20 lakh to ₹25 lakh effective 1st October 2025 due to IDA revision to 51.80%
Additional liability of ₹327.33 Cr recognized in Q4 FY26 (year ended 31st March 2026)
Additional liability of ₹2.37 Cr recognized in Q1 FY27 (quarter ended 30th June 2026)
Employee costs not comparable with previous periods due to this change

FPQ Sales Recognition (Note 7):

4th PPRC under progress, prices for 2023-24 onwards yet to be finalized
FPQ sales provisionally recognized using 2024-25 prices for FY2025-26 and Q1 FY2027
Conservative approach adopted as FPQ finalization has taken more than three years

Investment Update (Note 9):

Invested ₹2.45 Cr in "Systems Testing and Research for Advanced Materials Foundation" (Section 8 company)
200,000 equity shares of ₹100 each allotted as of 30th June 2026
45,000 share allotment pending

HATSOFF Helicopter Training (Note 10(i)):

Net profit of ₹10.56 Cr for Q1 FY27 but current liabilities exceed current assets by ₹82.62 Cr
Significant accumulated losses, net worth at ₹31.30 Cr (31st March 2026: ₹23.37 Cr)
OEM declared obsolescence of projector systems, stopped product support
New projector system replacement cost: ₹28 Cr excluding duties, 6-8 months lead time
Awaiting delivery of Military Dhruv Cockpit from CAE Inc, Canada (price: USD 6.89 million)
Prepared on going concern basis based on board affirmation, multi-year contracts, and banking options

HALBIT Avionics (Note 10(ii)):

Net liability of ₹11.46 Cr (March 2026: ₹12.80 Cr)
Net current liability of ₹12.22 Cr (March 2026: ₹13.55 Cr)
Material uncertainty regarding going concern but prepared on going concern basis due to positive cash flows and phased liability liquidation plans

Multirole Transport Aircraft (Note 10(iii)):

Board approved voluntary liquidation in principle (subject to Government approval)
Going concern assumption to become inappropriate upon fulfillment of closure procedures

Other JVs:

Infotech HAL Limited: NCLT admitted petition under Section 10 of IBC on 22nd August 2025
HAL-Edgewood Technologies: Financial statements not prepared for Q1 FY27, not consolidated (immaterial impact)

Company non-compliant with Regulation 17(1) of SEBI LODR Regulations and Section 149(4) of Companies Act 2013 regarding board composition
Non-compliant with Section 177 & 178 of Companies Act and Regulations 18(1) & 19(1) of SEBI LODR regarding Audit Committee and Nomination & Remuneration Committee constitution
Due to absence of requisite number of Independent Directors
Audit Committee not reconstituted as of results approval date (12th August 2026)