Hindustan Aeronautics Ltd: 4Q: Execution awaited, UW

Research evidence excerpt

Hindustan Aeronautics Ltd: 4Q: Execution awaited, UW

Idea

May 18, 2026 02:41 AM GMT

Morgan Stanley India Company Private Limited+MHindustan Aeronautics Ltd | Asia Pacific Girish Achhipalia

Equity Analyst

4Q: Execution awaited, UW Girish.Achhipalia@morganstanley.comPranjal Jain +91 22 6118-1124

Research Associate

What’s Changed Pranjal.Jain@morganstanley.com +91 22 6118-3037

Parth Karia

Hindustan Aeronautics Ltd (HIAE.NS) From To Research Associate

Price Target Rs3,355.00 Rs3,500.00 Parth.Karia@morganstanley.com +91 22 6118-1036

Hindustan Aeronautics Ltd (HIAE.NS, HNAL IS)

Reaction to earnings

India Industrials | India

Unchanged Modest upside Modest revision higher Stock Rating Underweight

Impact to our thesis Financial results versus consensus Direction of next 12-month Industry View In-Line

consensus EPS Price target Rs3,500.00

Source: Company data, Morgan Stanley Research Up/downside to price target (%) (20)

Shr price, close (May 15, 2026) Rs4,386.20

52-Week Range Rs5,165.00-3,479.10

Core dichotomy: Robust backlog vs uncertain execution. Delivery Sh out, dil, curr (mn) 669

time-lines for manufacturing continue to get pushed out. MktEV, currcap,(mn)curr (mn) Rs2,933,381Rs2,879,452

Investor expectations (20% o/p to Nifty since Mar-end) on Avg daily trading value (mn) Rs6,289

manufacturing scale-up are ahead of reality, given global supply Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

EPS (Rs)** 136.49 150.04 166.61 180.80

chains & external vendors dependance. Maintain UW. Prior EPS (Rs)** 132.74 142.03 154.41 -

EPS (Rs)§ 128.13 144.77 167.54 -

Revenue, net (Rs mn) 330,888 371,098 420,284 472,069

Key Takeaways EBITDA (Rs mn) 97,822 111,329 123,984 136,900

ModelWare net inc (Rs 91,280 100,340 111,426 120,913

Revenue, EBITDA & PAT growth of 2%, -5% & 8%, respectively.