Why are HAL shares down by 5% today? 

Synopsis: Shares of Hindustan Aeronautics Limited fell 5% after the company clarified that its MoU with Russia was already disclosed earlier, offering no new material triggering and leading to profit booking after a strong recent rally.

The shares of this company, which is engaged in the business of manufacturing aircraft and helicopters and repairing and maintaining aircraft and helicopters, had its shares fall today as the company clarified the recent news circulating about the company’s MOU with Russia.

With the market cap of Rs 2,85,115 crore, the shares of Hindustan Aeronautics Ltd have fallen about 5.5% and reached a low at Rs 4,210 , compared to today’s intraday high at Rs 4453.30. The shares are trading at a PE of 33.6, whereas its industry PE is at 56.2.

Stock corrects as recent optimism fades

The shares of Hindustan Aeronautics Limited are down by nearly 5% today, mainly because of market disappointment with the absence of new, price-sensitive announcements, and not because of any negative fundamentals. The stock had shown a sharp rise in the past few weeks due to market expectations of new developments in the defence and aviation sectors, making it a prime target for profit booking. In the case of stocks with high market expectations, even neutral market news can cause a sharp correction.

Another reason for the stock’s fall is HAL’s official clarification to the stock exchanges regarding a recent news report that Russia is giving a boost to India’s aircraft manufacturing sector. The company clarified that the MoU with Russia’s United Aircraft Corporation regarding the SJ-100 commuter aircraft was announced in October 2025 itself, and that there is no new material information in the news report.

In summary, the fall would appear to be a classic example of “buy the rumour, sell the news”, in addition to market volatility, following a strong rally. Crucially, however, HAL has also confirmed that the article in the media has no material impact on the company, implying that the fall is a sentiment-driven issue rather than a fundamentally driven one.

Financials

The revenue from operations for the company stood at Rs 6,629 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 5,976 crores, up by about 11 per cent YoY. Similarly, the net profit stood at Rs 1,669 crore in Q3 FY26, up compared to the Rs 1,510 crore profit in Q3 FY25.

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