HAL hosted an earnings conference call for Q4 and FY25 on May 16, 2025, with key management personnel including Shri. D.K. Sunil (CMD), Shri. Barenya Senapati (Director Finance & CFO), Shri. Ravi K. (Director Operations), and Shri. M.G. Balasubrahmanya (Director HR).
HAL achieved Maharatna status on October 12, 2024, the first defense PSU to do so.
The first AL-31FP engine was delivered under the 240 engines contract for Sukhoi-30 within one month of contract signature.
An out-of-court settlement was reached with the State Govt. of Maharashtra for ₹2,471 crore against a disputed demand of ₹10,079 crore, fully reimbursed by the Indian Air Force.
New orders worth ₹1,25,280 crore were received.
Turnover increased to ₹30,105 crore from ₹28,162 crore, a 7% increase, despite supply chain challenges for LCA Mark 1A and grounding of the ALH fleet.
Profit before tax was ₹10,820 crore, 35% of revenue, aided by improved operational efficiency.
The order book improved to ₹1,89,300 crore against the previous year's ₹94,127 crore.
Manufacturing contracts include 240 AL-31FP engines for ₹25,500 crore, 156 LCH Prachand for ₹62,777 crore, and 12 Sukhoi-30MKI aircraft at ₹13,454 crore.
The order pipeline includes 97 LCA Mark 1A, 143 ALH, and 10 DO-228 aircraft, estimated at around ₹1 lakh crore, expected to materialize in the next one to two years.
ROH repair and overhaul orders of around ₹20,000 crore are also expected.
CAPEX plan for the next five years is estimated at ₹14,000 to ₹15,000 crore, focusing on expanding manufacturing capabilities.
For LCA Mark 1 Alpha, GE has promised to supply 12 engines in this calendar year, and HAL expects to have 12 aircraft ready with these engines this year.
The LCA Mark-2 prototype is expected to fly in the first quarter of next year, with certification expected in 2029-30.
HAL is actively engaging with GE on technology transfer and pricing for the 414 engine for Mark-2.
AL-31FP engine deliveries are planned at a rate of about 30 engines per annum, with a current indigenous content of 57%.
The Sukhoi-30 upgrade is expected to receive government approvals this year, with the aircraft order kicking in about five to six years; the value is expected to be around ₹60,000 crore.
Management expects EBITDA margin of around 38%-39%, and if you remove the interest income, so EBITDA will be around 31%. They will be maintaining 31% at operating level. And revenue growth, the guidance is 7% to 8%, whatever is there, they will try to continue with that. However, they are expecting double-digit growth from next year onwards.
The company has invested in the Tumkuru plant exactly for this reason. Their Bangalore capacity will continue for the ALH and eventually the Tumkuru factory will become the main center where they will be producing the LCH and going forward they will be producing the LUH. So, all their investments are going into Tumkuru and they have built already this factory. So, as of now, they have 30 capacity in Bangalore. And going forward with the investments, they will be able to produce 30 LCH at Tumkuru. So, that kind of investments is already in place.