A major Indian aerospace and defence manufacturer is recommending a significant final shareholder payout for FY25. The company has proposed a final dividend of 300% on face value, subject to approval at its upcoming Annual General Meeting. Let’s dive into the details.
Hindustan Aeronautics Limited’s stock, with a market capitalisation of Rs. 3,27,880 crores, rose to Rs. 4,920, hitting a high of up to 0.45 percent from its previous closing price of Rs. 4,897.90. However, the stock over the past year has given a negative return of 9.09 percent.
Dividend Insights
Hindustan Aeronautics Ltd (HAL) has announced a final dividend of Rs. 15 per equity share for the financial year 2024–25, which is 300% of the face value of Rs. 5 per share.
This dividend is subject to approval at the upcoming Annual General Meeting (AGM) and will be paid within 30 days of approval. The company has fixed August 21, 2025, as the record date, meaning shareholders who hold HAL shares on or before this date will be eligible to receive the dividend.
For retail investors, this is a positive development, as it provides a steady stream of income in addition to any gains from share price appreciation. Dividends like this are a sign of a company’s strong financial health and commitment to sharing profits with shareholders. Investors looking for stable returns may find HAL attractive, especially if they prefer companies that consistently reward shareholders.
Aerospace and Defence Industry
India’s defence sector is headed towards growth, driven by a 9.5% increase in the 2025–26 budget allocation, reaching Rs. 6.81 lakh crore. With rising indigenisation via the SRIJAN portal, two active Defence Corridors, and 606 industrial licences issued, domestic manufacturing is gaining momentum.
Defence exports have crossed Rs. 21,000 crore, with a target of Rs. 50,000 crore by 2029. Additionally, record defence production of Rs. 1.27 lakh crore in FY24 signals strong future potential for the industry.
Q4 Financial Highlight
The company reported consolidated revenue of Rs. 13,700 crore in Q4FY25, down 7.2 percent year-on-year from Rs. 14,769 crore in Q4FY24, but nearly doubled sequentially from Rs. 6,957 crore in Q3FY25. This sharp QoQ rebound reflects a strong operational recovery despite the annual decline. Over the past three years, sales have grown at a CAGR of 8 percent.
Net profit for FY25 surged 176 percent YoY to Rs. 3,977 crore from Rs. 1,440 crore in Q4FY24, though it declined 7.7 percent from Rs. 4,309 crore in Q3FY25. Profitability has remained robust, supported by a 3-year profit CAGR of 18 percent and an impressive 27 percent CAGR in return on equity (ROE), highlighting consistent value creation for shareholders.
Written By Fazal UI Vahab C H
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