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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Hindustan Aeronautics's 3-Year RORE % for the quarter that ended in Mar. 2026 was 8.67%.
The industry rank for Hindustan Aeronautics's 3-Year RORE % or its related term are showing as below:
NSE:HAL's 3-Year RORE % is ranked worse than 52.2% of 318
companies
in the Aerospace & Defense industry
Industry Median: 9.725
vs NSE:HAL: 8.67
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Hindustan Aeronautics 3-Year RORE % Related Terms
Hindustan Aeronautics 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Hindustan Aeronautics's 3-Year RORE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:HAL vs SPCX, GE, RTX: 3-Year RORE % Comparison
For the Aerospace & Defense subindustry, Hindustan Aeronautics's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hindustan Aeronautics 3-Year RORE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Hindustan Aeronautics's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Hindustan Aeronautics's 3-Year RORE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Hindustan Aeronautics (NSE:HAL) has a 3-Year RORE % of 8.67 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Hindustan Aeronautics and its competitors. According to the industry distribution chart, Hindustan Aeronautics ranks #166 out of 318 companies in the Aerospace & Defense industry, placing it in the top 52.2%.
Is Hindustan Aeronautics' 3-Year RORE % too high?
Hindustan Aeronautics' current 3-Year RORE % is 8.67. The Aerospace & Defense industry median 3-Year RORE % is 9.73. Hindustan Aeronautics' value of 8.67 is 10.8% below this industry median. Based on the distribution chart, Hindustan Aeronautics ranks #166 out of 318 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Hindustan Aeronautics has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Aeronautics' 3-Year RORE % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Hindustan Aeronautics ranks #166 out of 318 companies for 3-Year RORE %. This places Hindustan Aeronautics in the lower half of its industry. The industry median 3-Year RORE % is 9.73. Hindustan Aeronautics' value of 8.67 is 10.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Aerospace & Defense company?
The median 3-Year RORE % among Aerospace & Defense companies is 9.73, based on 318 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hindustan Aeronautics's current 3-Year RORE % of 8.67 is 10.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Hindustan Aeronautics and its competitors. For the Aerospace & Defense industry, the median 3-Year RORE % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Aeronautics's current 3-Year RORE % is 8.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Aeronautics stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Aeronautics (NSE:HAL) is currently considered Fairly Valued. The stock's GF Value™ is ₹4,739.93, compared to a current price of ₹4,500.70 — trading 5% below its estimated fair value. The current 3-Year RORE % is 8.67 and 10.8% below the Aerospace & Defense industry median of 9.73. Hindustan Aeronautics' overall GF Score™ is 94/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Hindustan Aeronautics (NSE:HAL), the current 3-Year RORE % is 8.67 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hindustan Aeronautics (NSE:HAL) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Aeronautics stock appears to be undervalued.
The current stock price of ₹4,500.70 is trading 5% below its estimated GF Value™ of ₹4,739.93.
GuruFocus considers Hindustan Aeronautics to be Fairly Valued.
Key valuation signals for NSE:HAL:
3-Year RORE %: 8.67
GF Value™: ₹4,739.93 vs. price of ₹4,500.70 (5% below fair value)
Industry Position: 10.8% below the Aerospace & Defense median (#166 of 318)
No single metric tells the full story. See the NSE:HAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Aeronautics Ltd operates in the aerospace and defense sector. The company is engaged in the design, manufacturing, and development of products like aircraft, helicopters, systems and accessories, power plants, avionics, materials like castings, rolled rings, rubber products, and aerospace which include structures, tanks, and cryogenic engines. Geographically the company derives revenue from India and other countries, of which a majority of revenue is generated from India.
94GF Score
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