HAL Share Price Rises 3% After Cabinet Clears Rs 62,000 Crore Tejas Mk1A Fighter Jet Order

Market Performance

Shares of Hindustan Aeronautics Ltd (HAL) jumped up to 3.5% to Rs 4,605 in early trades on Wednesday, August 20. At around 9:20 am, the stock was trading at Rs 4,560, up 2.5% from the previous close on the NSE. Despite recent gains, HAL shares are down 8% in the last three months.

Main News

The Cabinet Committee on Security has approved the purchase of 97 Light Combat Aircraft (LCA) Mark1A fighter jets worth around Rs 62,000 crore, making it one of the biggest orders in HAL’s history, according to government sources cited by CNBC TV-18.

The Tejas Mk1A, an advanced version of India’s indigenous Tejas fighter, comes with upgraded combat capabilities. Deliveries are set to start this year, with six jets planned for FY26 following the resolution of previous engine supply challenges.

This is HAL’s second major order for the aircraft, following a contract secured in February 2021.

Company Details

• Revenue (Q1 FY26): Rs 4,819 crore, up 10.8% YoY
• Net Profit: Rs 1,383.8 crore, down 3.7% YoY
• EBITDA: Rs 1,284 crore, up nearly 30% YoY
• EBITDA Margin: 26.7%, compared to 22.8% last year
• Order Book: Rs 1.89 lakh crore

HAL’s robust order pipeline and improving margins highlight its growing role in India’s defence manufacturing sector.

Summary of the Article

• HAL shares gained up to 3.5% following the clearance of a Rs 62,000 crore fighter jet order.
• The Cabinet Committee on Security approved the 97 Tejas Mk1A jets, enhancing HAL’s defence portfolio.
• Q1 financials show mixed results: revenue increased 10.8%, EBITDA rose 30%, while net profit declined 3.7% YoY.
• Deliveries of the Tejas Mk1A jets are expected to kick off this year, with engine supply issues being resolved.
• HAL remains central to India’s indigenous defence manufacturing push, backed by a Rs 1.89 lakh crore order book.