HAL Results: Company Posts Mixed FY25 Results; Settles ₹10,000 Cr Tax Dispute, Stock Jumps 4%

HAL Results:

hal results

Today, Hindustan Aeronautics Limited (HAL)  announced a mixed financial performance for the fiscal year ended March 31, 2025, with a dip in fourth-quarter profits contrasted by robust full-year growth and significant non-operational developments, including a major tax dispute settlement and a strategic investment.

For the fourth quarter of FY25 (Q4FY25), the state-run defence PSU reported an 8% decline in consolidated net profit, which stood at ₹3,977 crore compared to ₹4,309 crore in the same quarter of the previous year. Revenue generation from operations for the March-ended quarter also saw a 7% decrease year-over-year, coming in at ₹13,700 crore against ₹14,769 crore in Q4FY24.

However, in the HAL results and looking at the full financial year FY25, HAL’s performance painted a more positive picture. Net profit rose by 10% to ₹8,364 crore, up from ₹7,621 crore in FY24. Revenue from operations for the entire FY25 reached ₹30,981 crore, a modest 2% increase from ₹30,381 crore in the preceding fiscal year.

Sequentially, the company saw a significant surge in profitability and revenue in Q4 FY25 compared to the preceding quarter (Q3 FY25). Profit after tax (PAT) surged by 176% from the ₹1,440 crore reported in Q3FY25. Revenue nearly doubled, rising by 97% from ₹6,957 crore posted in the October-December quarter of FY25, indicating a strong operational finish to the fiscal year despite the year-on-year quarterly decline.

In HAL Results, Company’s expenses for Q4FY25 were reported at ₹9,150 crore, an increase from ₹5,552 crore in Q3FY25 but slightly lower than the ₹9,543 crore incurred in the year-ago period.

In a significant development outside its core operations, HAL disclosed reaching an out-of-court settlement with the Government of Maharashtra. This settlement, under an Amnesty Scheme, resolves longstanding Sales Tax disputes dating back from FY1986-87 to FY2017-18. The agreement drastically reduced the disputed tax demand from a staggering ₹10,018.41 crore to ₹2,737.24 crore. The company confirmed paying ₹2,471 crore during the March 31, 2025, quarter towards this settlement, after adjusting a prior deposit of ₹266 crore with revenue authorities, thereby settling the matter in full.

Further demonstrating strategic forward-looking moves, In HAL results, Company also announced an investment of ₹61 lakh in the Systems Testing and Research for Advanced Materials Foundation. This investment grants HAL a 20% stake in the Section 8 company through the subscription of 61,250 equity shares of ₹100 each. Of these, 20,000 shares have been allotted, with the remaining 41,250 pending allotment and recorded as share application money paid.

After the HAL results announcement, HAL shares saw a positive reaction in the market, jumping over 4% during market hours to hit a day’s high of ₹4,798 on the NSE.

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