HAL Share Price: Anand Rathi recommends 'BUY' for Hindustan Aeronautics shares; check the target price.

Hindustan Aeronautics Limited (HAL) shares remain in focus after brokerage firm Anand Rathi retained its ‘BUY’ rating on the defence stock following the company’s strong Q1 FY27 performance. The brokerage has set a 12-month target price of ₹5,431, compared with the reference price of ₹4,960, indicating potential upside of around 9.5%.

HAL Q1 FY27 Results Beat Expectations

According to Anand Rathi’s report, HAL delivered a strong performance in the first quarter despite recording no LCA Tejas Mk-1A deliveries during the period.

The company’s revenue increased 14.4% year-on-year to ₹5,520 crore, exceeding the brokerage’s estimate by around 6.1%. EBITDA rose 19% to ₹1,530 crore, while the EBITDA margin expanded by 107 basis points to 27.8%.

HAL’s profit after tax (PAT) increased 14.8% to ₹1,580 crore, supported in part by a 20.5% rise in other income.

LCA Tejas Mk-1A Delivery Could Be the Next Major Catalyst

Anand Rathi highlighted engine availability as a key factor determining the pace of LCA Tejas Mk-1A deliveries. According to the report, HAL has completed airframes for 20 aircraft, with another 8–9 aircraft under construction.

HAL has received seven GE F404-IN20 engines so far and expects another 10 engines by November 2026. Management expects testing-related issues to be resolved by September 2026 and remains confident of delivering the first squadron of 16–18 aircraft by March 2027.

Successful clearance of the remaining testing issues could therefore become an important catalyst for HAL share price.

HAL Stock Has Already Gained 35% Since April

The brokerage noted that HAL shares have already delivered a strong rally, gaining around 35% since April 2026. Despite the significant rise, Anand Rathi believes the stock retains further upside potential based on the company's strong order pipeline, execution prospects and improving financial performance.

With the brokerage's ₹5,431 HAL share price target, investors will closely track developments around Tejas Mk-1A deliveries and engine supplies.

What Are the Risks for HAL Investors?

Despite maintaining a bullish view, Anand Rathi has highlighted several risks that investors should monitor. These include:

Delays in GE engine deliveries

Slippage in LCA Tejas Mk-1A production and deliveries

Delays in resolving testing and certification issues

Higher working-capital requirements

Potential execution challenges across major defence programmes

HAL Share Price Target: Key Takeaway

Anand Rathi's ‘BUY’ rating and ₹5,431 target price underline its positive view on HAL's medium-term prospects. The company's strong Q1 FY27 numbers, defence-sector demand and progress on the Tejas Mk-1A programme remain important factors supporting the bullish outlook.

However, with the stock already rising sharply in recent months, investors should closely monitor execution, engine availability and delivery timelines before making investment decisions.