Financial Performance Overview

Standalone Results (Rs. in lakhs):

Quarter Ended 30-Sep-26 (Audited):

  • Revenue from operations: ₹7,61,311
  • Other income: ₹98,960
  • Total income: ₹8,60,271
  • Profit before tax: ₹2,46,945
  • Net profit: ₹1,83,904
  • Basic EPS: ₹27.50

Half Year Ended 30-Sep-26 (Audited):

  • Revenue from operations: ₹13,12,839
  • Other income: ₹1,89,241
  • Total income: ₹15,02,080
  • Profit before tax: ₹4,59,473
  • Net profit: ₹3,41,965
  • Basic EPS: ₹51.13

Consolidated Results (Rs. in lakhs):

Quarter Ended 30-Sep-26 (Audited):

  • Revenue from operations: ₹7,61,325
  • Other income: ₹98,830
  • Total income: ₹8,60,155
  • Profit before tax: ₹2,56,605
  • Net profit: ₹1,93,564
  • Basic EPS: ₹28.94

Half Year Ended 30-Sep-26 (Audited):

  • Revenue from operations: ₹13,12,842
  • Other income: ₹1,88,854
  • Total income: ₹15,01,696
  • Profit before tax: ₹4,70,038
  • Net profit: ₹3,52,530
  • Basic EPS: ₹52.71

Key Financial Metrics

As at 30-Sep-26 (Standalone):

  • Paid-up equity share capital: ₹33,439 lakhs (Face value ₹5 each)
  • Other equity excluding revaluation reserves: ₹43,38,077 lakhs
  • Net worth including retained earnings: ₹43,71,516 lakhs

As at 30-Sep-26 (Consolidated):

  • Paid-up equity share capital: ₹33,439 lakhs
  • Other equity excluding revaluation reserves: ₹43,66,503 lakhs
  • Non-controlling interest: ₹343 lakhs
  • Net worth including retained earnings: ₹44,00,285 lakhs

Audit and Compliance Details

  • Statutory Auditors: M/s. B K Ramadhyani & Co. LLP, Chartered Accountants
  • Audit report issued with unmodified opinion for both standalone and consolidated results
  • Results reviewed and recommended by Audit Committee meeting held on 12.11.2026
  • Board meeting commenced at 10:15 AM and concluded at 1:10 PM on 12.11.2026

Emphasis of Matter Points

Board Composition Issues:

The Company has vacancies in positions of Independent Directors, resulting in non-compliance with certain requirements of Companies Act, 2013 and SEBI Listing Regulations relating to composition of Board and certain Board Committees including Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, CSR Committee and Risk Management Committee. Since appointment of Directors is made by Government of India, the Company has taken up the matter with the Ministry for filling vacant positions.

Revenue Recognition - Defense Contracts:

Existing Fixed Price Quotation (arising out of 3rd PPRC) is up to 2022-23. 4th PPRC is under progress, due to which prices for year 2023-24 and onwards are yet to be firmed up. Hence, pending finalization of approval for fixation of FPQ prices for subsequent years 2023-24 and 2024-25, Sales have been recognized provisionally based on indices provided by Air HQ. For year 2025-26 and half-year ended 30.09.2026, divisions have recognized FPQ sales by considering provisional price of 2024-25.

Joint Ventures Update

HATSOFF Helicopter Technologies Pvt Ltd:

  • Board approved acquisition of 50% equity shares for Nil consideration (not completed as of September 30, 2026)
  • Company agreed to provide Inter Company Loan to HATSOFF for closure of borrowings
  • Net profit of ₹1,590.59 lakhs for six months ended September 30, 2026
  • Current liabilities exceeded current assets by ₹7,652.76 lakhs
  • Significant accumulated losses with substantial erosion of net worth (₹3,531.30 lakhs as at 30.09.2026)
  • OEM declared obsolescence of current projector system, stopped product support
  • Inter Corporate Loan of ₹6,252.00 lakhs from HAL taken on 15.10.2026 repayable in 12 quarterly installments at 7.15% p.a.

HALBIT Avionics Private Ltd:

  • Net liability of ₹1,229.03 lakhs as at September 30, 2026
  • Net current liability of ₹1,304.78 lakhs
  • Bulk of current liability subject to satisfactory completion of performance obligations by supplier
  • Company continues to generate positive cash flows from operations

Multirole Transport Aircraft Limited:

  • Board approved in principle for voluntary liquidation subject to Government of India approval
  • Process involves multiple steps including receipt of GOI approval, unanimous director resolution, member approval, and compliance with Indian and Russian regulations

Other Joint Ventures:

  • Infotech HAL Limited: NCLT order received on 17.08.2026 for dissolution under Section 10 of IBC
  • HAL-Edgewood Technologies Private Limited: Not prepared financial statements for six months ended September 30, 2026, impact not material

Cash Flow Highlights

Standalone (Half Year Ended 30-Sep-26):

  • Net cash from operating activities: ₹1,57,785 lakhs
  • Net cash from investing activities: ₹2,24,543 lakhs
  • Net cash used in financing activities: ₹(67,043) lakhs
  • Net increase in cash and cash equivalents: ₹3,15,285 lakhs

Consolidated (Half Year Ended 30-Sep-26):

  • Net cash from operating activities: ₹1,57,313 lakhs
  • Net cash from investing activities: ₹2,24,955 lakhs
  • Net cash used in financing activities: ₹(67,043) lakhs
  • Net increase in cash and cash equivalents: ₹3,15,225 lakhs

Additional Information

  • The statement of cash flows prepared under Indirect Method as per Ind AS 7
  • Cash and cash equivalents include short-term deposits with banks
  • Material accounting policies and notes 1 to 49 form integral part of financial statements
  • Full financial results available on BSE, NSE websites and company website www.hal-india.co.in