According to HAL officials, the new facility will enable the company to meet the delivery target of 180 LCA Mark 1A aircraft ordered by the IAF by 2032-33
Calling it a “red-letter day,” the HAL Chair said the order displays the government’s confidence in the indigenous fighter program.
LCA Tejas MK2 News: The ramping up is taking place. They (GE) had promised us 12 engines in a year, but perhaps now we will get 12 engines by the end of the financial year, HAL Chief said
Revenue growth healthy in Q1FY26, supported by improved execution, even as profits softened marginally
Even though Hindustan Aeronautics reported a four percent YoY fall in net profit, brokerages remained bullish amid stronger margins, lower depreciation, and higher other income.
India’s Defence Acquisition Council has approved a series of procurements and upgrades for the Army, Navy, and Air Force, potentially benefiting firms like BEL, L&T, and HAL.
HAL share price: The global brokerage maintained an 'Overweight' rating on HAL shares, with a target price of Rs 6,105 apiece.
Steady improvement in execution to drive earnings growth
HAL's revenue was expected to take a hit due to delays in the supply of Tejas Mk 1A light combat aircraft,
Defence exports from domestic firms may reach Rs 5 lakh crore by 2028-29, building on the 32.5 percent increase in exports from 2022-23 to 2023-24.
Despite delays, the production pipeline is now gearing up as HAL is set to deliver the first batch of 12 Tejas MK1A to the Indian Air Force (IAF) by December 2025.
The slippage in the delivery schedule for the LCA Mk-1A variant of the jet had become a major issue with Chief of Air Staff Air Chief Marshal A P Singh raising the matter publicly.
HAL emerged as the highest bidder with a bid of Rs 511 crore, surpassing two other consortiums that participated in the commercial bidding process -- one led by Bengaluru-based Alpha Design and the other by Hyderabad-based Bharat Dynamics Limited (BDL).
HAL has enhanced the domestic share of components, with key systems like radar and high-frequency radios now being produced by Bharat Electronics Ltd.
Large order pipeline and the expected resolution of GE engine availability to boost performance
HAL, India's flagship aerospace and defence manufacturing company, currently operates major production facilities in Bengaluru and Tumakuru in Karnataka.
Karnataka minister MB Patil said he plans to soon hold discussions with Union minister Rajnath Singh on sanctioning a defence corridor in the state
Hindustan Aeronautics shares will be in focus as brokerages reiterate their bullish calls on the defence player, following its Q4 earnings show.
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 land could be valued at around Rs 300–400 crore.
On May 8, shares of defence companies tumbled in the second half amidst profit booking with most defence players losing early gains.
The government may prioritise the implementation of key defence programmes
HAL share price: Motilal Oswal believes HAL’s dominance in the defence aviation space, combined with a robust order book and a growing pipeline of future deals, places it in a strong position to capitalise on India’s rising defence spending.
The focus is on execution and capacity expansion
ICICI Securities said the delivery of the first engines for the Tejas MK 1A allays concerns on the execution front.
Bajaj Finance is Morgan Stanley's preferred choice among large-cap NBFCs, while HAL's growth will be led by engine upgrades, orders and exports.