Hindustan Aeronautics (HAL) shares gave up mild gains on Thursday, trading flat at ₹4,972.90 on the NSE after rising to ₹5,039, compared with the previous close of ₹4,995.The stock’s movement came after HAL reported standalone PAT of ₹1,580.61 crore in Q1FY27, against ₹4,184.28 crore in the March 2026 quarter and ₹1,377.15 crore in Q1FY26.Nomura retained a buy rating on HAL and raised its target price to ₹6,314 from ₹6,040. The brokerage said EBITDA was 10 per cent above estimates and that execution visibility remains healthy, with manufacturing book/bill at 25x.CLSA retained an outperform rating with a target price of ₹5,481. It said PAT was ahead on delivery of a higher number of engines and helicopters and treasury income, while margins expanded.Citi retained a buy rating with a target price of ₹5,550. It said Q1 PAT beat estimates, while revenue at ₹55.1bn grew 14 per cent y-o-y and was 4 per cent ahead of Citi/consensus.Citi said EBITDA at ₹15.3bn grew 19 per cent y-o-y and was 6 per cent ahead of its estimate. PAT at ₹15.9bn grew 11 per cent y-o-y and was 4 per cent/6 per cent ahead of Citi/consensus.The brokerage said growth outperformance came even in the absence of Tejas LCA delivery commencement, highlighting resilience in HAL’s broader business. It sees scope for re-rating once LCA deliveries commence and said 1Q margins were positive, with y-o-y expansion in a quarter when various other capital goods companies saw contraction.Kotak raised its target price to ₹5,305 from ₹4,810 and retained its add recommendation. It described the quarter as steady, with Q1FY27 execution aided by better-than-expected margins. It said Tejas MK1A approval and deliveries remain critical milestones, while the near-term prospect pipeline stands at ₹90,000 crore.JP Morgan raised its target price to ₹5,733 from ₹5,145 and retained its overweight recommendation. It said healthy P&L in Q1 increases confidence in FY27E guidance, with LCA Mk1A delivery being a key factor to watch. It said FY27 guidance targets double-digit growth, with manufacturing to lead.Capex outlookDomestic brokerage Motilal Oswal noted HAL has planned capex of ₹140 billion over the next five years. During FY26, cumulative capex and R&D expenditure stood at ₹25 bn, primarily directed towards the Greenfield Helicopter Project at Tumakuru, LCA facility augmentation, ROH facilities for Su-30 and AL-31FP engines, IT infrastructure, and regular replacement and rationalisation of existing facilities.R&D spending was focused on upcoming programmes, including IMRH, CATS, UHM, Civil ALH and LUH. The brokerage said HAL’s five-year capex plan is primarily aimed at expanding manufacturing capacities and establishing ROH facilities across various platforms.Motilal Oswal maintained its FY27 and FY28 estimates and expects overall revenue/EBITDA/PAT to clock a CAGR of 23 per cent/19 per cent/17 per cent over FY26-29. It expects EBITDA margin to remain strong at 29.4 per cent in FY27, before contracting slightly to 28.9 per cent/27.2 per cent in FY28/FY29 as the share of manufacturing revenues ramps up.The brokerage reiterated its buy rating with a revised target price of ₹5,800.Motilal Oswal identified risks, including slower-than-expected finalisation of large platform orders, further delays in deliveries of key components such as engines for the Tejas Mk1A, delays in payments from the MoD, and higher involvement of the private sector.HDFC Securities upgraded to add from reduce; target price ₹5,120. It also raised its FY26-FY28E revenue CAGR estimate to 15.2 per cent from 10 per cent, led by higher estimates for LCA Tejas MK1A deliveries. It expects 10 MK1A deliveries in FY27 and 18 in FY28, compared with earlier estimates of 10 in FY27 and 10 additional deliveries in FY28E.Published on August 13, 2026