HAL Q2 earnings could show strong growth in the September quarter, with Hindustan Aeronautics Limited (HAL) expected to outperform several defense companies.
According to JM Financial’s earnings preview, HAL’s revenue may rise 22.3 percent year over year. Bharat Electronics (BEL), Data Patterns, and ideaForge Technology are also in focus as investors assess revenue growth, margins, and order execution.
India’s defense manufacturing sector is expected to follow its usual quarterly pattern. The second quarter has historically accounted for around 19 percent to 20 percent of annual execution across the companies covered by the brokerage.
JM Financial expects HAL to report revenue of Rs 8,106.1 crore, up 22.3 percent from the year-ago period. Deliveries of the LCA FOC Mk1, HTT trainer aircraft, and Dhruv NG helicopters completed in September are expected to support growth.
Net profit could increase 21.8 percent year over year to Rs 2,024.7 crore. However, profitability may face pressure as manufacturing revenue accounts for a larger share of the business. The brokerage expects HAL’s EBITDA margin to decline to 26.5 percent from 27.7 percent in the previous quarter.
The Tejas Mk1A fighter aircraft delivery schedule remains another key factor. JM Financial noted that engine supply concerns appear to have eased, with 14 engines supplied so far. Technical integration and a scheduled mid-October review meeting between HAL and the Indian Air Force remain important milestones.
For BEL, JM Financial projects revenue of Rs 6,346.9 crore, representing 10.1 percent year-over-year growth. Its EBITDA margin could improve to 26.9 percent from 25.1 percent in the previous quarter, supported by operating leverage. Net profit is estimated at Rs 1,287.5 crore, remaining broadly flat.
BEL’s order inflows are also worth watching:
The first two quarters’ projected inflows would account for around 27 percent of BEL’s full-year guidance. Any update on the Quick Reaction Surface-to-Air Missile (QRSAM) contract timeline will also draw attention.
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Data Patterns is expected to report revenue of Rs 225.6 crore, down 26.6 percent year over year. The decline reflects an unfavorable comparison with the previous year, when the company executed a large order during the second quarter.
Despite lower revenue, its EBITDA margin could rise to 44.2 percent, compared with 22.3 percent a year earlier and 27 percent in the previous quarter. Net profit is projected to increase 48.8 percent to Rs 73.2 crore. JM Financial identified the conversion of its order pipeline into fresh inflows as the most important factor to monitor.
Meanwhile, drone maker ideaForge Technology could record a sharp recovery. Its revenue is estimated to jump 201 percent year over year to Rs 122.8 crore, in line with management’s plan to execute its opening order book by the third quarter.
The company is projected to report a net profit of Rs 11 crore, compared with a net loss of Rs 19.6 crore in the year-ago quarter. Its EBITDA margin is estimated at 23.5 percent.
Overall, HAL Q2 earnings may lead the sector’s revenue growth, but margins, aircraft deliveries, and fresh order inflows will remain important indicators of performance. These figures are brokerage estimates, not confirmed quarterly results.
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