HAL CMD says no official communication on exiting AMCA project

HAL shares see profit booking in trade.

• HAL says no official word on exclusion from AMCA fighter jet programme.
• Five LCA Mk1A jets are fully ready for delivery as per contract specifications.
• HAL anticipates 25% revenue from civil aircraft in the next decade.

Did our AI summary help?

Hindustan Aeronautics Ltd (HAL) Chairman and Managing Director D.K. Sunil on Thursday said there has been no official communication indicating that the company has been excluded from the Advanced Medium Combat Aircraft (AMCA) programme.

Sunil told CNBC-TV18 that after the development of five AMCA prototypes, the final production order will be opened for competitive bidding, in which HAL will also be eligible to participate. He added that AMCA production is likely only around 2035 and has not been factored into the company’s earnings projections yet.

The comments came amid a recent decline in HAL shares, which fell for a second consecutive session after a media report suggested that the state-owned defence major was no longer in the race to develop India’s next-generation stealth fighter jet.

"The government’s intent is to create a more competitive and robust defence ecosystem. The narrative around execution delays is misplaced," Sunil said, noting that delays in the Light Combat Aircraft (LCA) Mk1A programme were an exception caused by engine supply issues from GE.

He said 14 LCA Mk1A aircraft are currently ready, and 24 aircraft are expected to be ready by the end of FY26. Sunil also said that civil aircraft are expected to contribute about 25 percent of HAL’s revenues over the next 10 years.

Earlier in the day, HAL clarified that five LCA Mk1A jets are fully ready for delivery. In a statement issued on February 5, the company said the aircraft meet the specifications agreed under the contract.

"HAL wishes to clarify the status of LCA Mk1A deliveries to the customer for all stakeholders. HAL confirms that five aircraft are fully ready for delivery, incorporating major contracted capabilities in accordance with the agreed specifications," the company said in a post on X.

HAL shares recover 3% from day's low as PSU defence firm clarifies 5 LCA MK1A aircraft 'ready for delivery'

Shares of the company settled lower at Rs 4,030 per share on the NSE, down 4.44 percent.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.