The board of defence public sector undertaking Hindustan Aeronautics Ltd (HAL) has recommended a final dividend of Rs 10 per share for the financial year 2025-26. This proposal now awaits approval from the company's shareholders at the upcoming Annual General Meeting (AGM).
Key Dividend Details
If approved by shareholders, the record date for the payment of this final HAL dividend will be Friday, August 14, 2026. The company has stated that the final dividend will be disbursed to eligible shareholders within 30 days from the date of its approval at the AGM.
Earlier this year, in February, HAL had also announced an interim dividend of Rs 35 per share. Historically, HAL has maintained a consistent dividend payout. In FY25, the company paid a total dividend of Rs 40 per share. This followed total dividends of Rs 35 per share in FY24 and Rs 55 per share in FY23.
Analyst Outlook and Order Pipeline
Brokerage firm MOFSL recently highlighted HAL's robust near-term pipeline, estimated at Rs 90,000 crore over the next two years. This significant order book includes contracts for 143 Advanced Light Helicopters (ALH), Sukhoi fighter jet upgrades, and Dornier aircraft enhancements, with ALH expected to be a primary revenue driver. Analysts anticipate that future approvals for indigenous aircraft programs could further bolster HAL's long-term visibility.
HDFC Institutional Equities noted HAL's modest performance in FY26, with a 7 percent revenue growth over FY25, partially slowed by lower execution of Repair and Overhaul (RoH) orders. The EBITDA margin for the year saw a decline to 29.5 percent due to increased input costs. However, HDFC Institutional Equities projects HAL to achieve a 10 percent revenue Compound Annual Growth Rate (CAGR) between FY26 and FY28, driven by deliveries of Tejas fighter jets, ALH, and engine programs, alongside a resurgence in Maintenance, Repair, and Overhaul (MRO) activities.
The company also has a planned capital expenditure of Rs 12,000 crore to support its existing order book and future pipeline, signaling confidence in its growth trajectory.