Date: May 24, 2026
Financial Results
FY26 overall results were significantly better than FY25 overall results, consistent with the company's September 2025 forecast indicated by the annual report message "In the next orbit".
Q4 FY26 sales performance was better than Q4 FY25 sales. However, Q4 FY26 profitability was lower than the same quarter last year. This profitability decline was attributed to two main factors:
- Kavach contracts vary in profitability for many reasons, which is described as the nature of the business and beyond management control. The company notes that future variability in Kavach contract profitability should be expected.
- Cumulative effect of many small reasons including provisions for maintenance obligations on Kavach contracts, compliance with labour codes, and R&D expenses charged off.
Guidance & Outlook
Management provided cautious estimates for FY27, indicating that both sales and profits would be significantly better than FY26. However, the company expects variability in profitability among the four quarters of FY27.
This quarterly variability would be primarily due to the Kavach business, but other factors would also contribute including:
- Impact of the Gulf War on shipping
- Energy costs
- Inflation
Future Business Development
The company informed shareholders that other high-tech and higher margin businesses that HBL has been investing in for many years will become substantial sources of sales and profits in a few years.
Corporate Communications
The disclosure was signed by G Naidu, Company Secretary, and represents information provided to shareholders for interpreting results published on May 23, 2026.