Hindustan Aeronautics Ltd (HAL), India’s largest defence aerospace manufacturer, is aiming for a capital expenditure of Rs 3,000 crore in FY26 and is exploring monetisation of non-core land in Delhi to partly fund its investments.
The planned capital infusion is part of a larger strategy to ramp up production capacity and invest in new defence projects.
The capex plan for the five-year period from FY25 to FY29 is estimated at Rs 14,000–15,000 crore, translating into an average annual investment of about Rs 3,000 crore, a senior HAL executive told Moneycontrol. Capital expenditure is broadly the purchase or creation of long-term assets such as new equipment.
“We plan to keep investing in our capacities to support new projects like LCA Mark 2, the GE F414 engine manufacturing under Transfer of Technology, and the IMRH engine programme,” the official said, adding that the company is also focusing on building infrastructure for future platforms such as the Indian Multi-Role Helicopter (IMRH) and the fifth-generation Advanced Medium Combat Aircraft (AMCA).
HAL has spent Rs 2,168 crore as capital expenditure in 2023-24, Rs 2,081.7 crore in 2022-23, Rs 1,622 crore in 2021-22 and Rs 1,344 crore in FY21, data from the company's annual reports shows. The company is scheduled to report its financial results for Q4FY25 and full year FY25 on May 14, 2025.
HAL played a critical role in Operation Sindoor, which targeted terrorist bases in Pakistan this month, by ensuring the timely maintenance and operational readiness of the Indian Air Force’s fighter aircraft. The company ramped up its repair and overhaul (ROH) capabilities and worked closely with the Armed Forces to support mission-critical requirements.
Monetisation plan
As part of its funding strategy, HAL may monetise a portion of its five-acre land parcel in Delhi. According to a government official, the total value of the land could be around Rs 300-400 crore. “HAL has some interest in selling its non-core land assets. They are still preparing the document to decide how much they want to sell and how much to retain,” the official said. The land comprises residential quarters and plant infrastructure.
The Finance Ministry’s Department of Public Enterprises (DPE) is facilitating the non-core asset monetisation process. While HAL and its administrative ministry will take the lead on execution, DPE plays a supportive and monitoring role across central public sector enterprises.
Investment plan
HAL’s broader investment plan includes building a 20,000-tonne isothermal press and a 50,000-tonne hydraulic press for manufacturing engine and aerostructure forgings, as well as a carbon fibre facility with an estimated investment of Rs 600 crore. These infrastructure upgrades are intended to strengthen HAL’s capability in high-value components and materials.
The company is also focusing on research and development to drive indigenous innovation. It has sanctioned around Rs 4,000 crore for the IMRH programme and has internally funded the Utility Helicopter–Marine variant with Rs 2,000 crore. The delivery of HAL’s Hindustan Turbo Trainer (HTT-40), civil ALH, and LCH helicopters is scheduled for FY26, while marine helicopters for the Navy are expected in FY27.
Additionally, HAL is scaling up engine production, including AL-31FP, RD-33, LM-2500, and Shakti variants. It is also preparing for the execution of the GE-414 engine programme in partnership with GE and the co-development of the IMRH engine with Safran.
Despite global supply chain disruptions, HAL reported provisional revenues of over Rs 30,400 crore in FY25 and holds a robust order book of Rs 1.84 lakh crore. This includes the recent Rs 62,777 crore contract for 156 Light Combat Helicopters (LCH Prachand) — the largest order secured by HAL to date.
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