HAL Share Price: Maharatna PSU In Cruise Mode After Rs 62,000 Cr Order For 97 Tejas Jets

New Delhi: Maharatna Public sector defence manufacturer Hindustan Aeronautics Ltd (HAL) on Thursday announced that the Centre has approved a major order for the procurement of 97 Light Combat Aircraft (LCA) Mk-1A fighter jets, valued at Rs 62,000 crore.

In a filing to the stock exchanges, HAL said, “We would like to inform that, as communicated by the Ministry of Defence, Cabinet Committee of Security (CCS) on August 19, 2025 has approved the proposal for procurement of 97 Light Combat Aircraft Mk-1A along with associated equipment by the Ministry of Defence, for Indian Air Force from the Company.”

Following the announcement, HAL shares rose 0.60% to Rs 4,494.70 as of 11:45 a.m., after touching an intraday high of Rs 4,525.85.

The stock has surged 7.78% so far this year, though it is down 5.38% in the past month. Over the last five years, HAL’s share price has delivered a staggering 642% return.

Boost to Indigenous Fighter Program

The order is being seen as a major milestone in India’s efforts to indigenize its defence manufacturing. The LCA Mk-1A is an upgraded version of the Tejas fighter jet, offering enhanced combat capabilities.

The deal also represents a critical step in replacing the Indian Air Force’s ageing MiG-21 fleet.

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This is the second major contract for the Tejas program, following an order placed with HAL in February 2021. Deliveries under the new deal are set to begin this year, with six jets scheduled for FY26, after earlier engine supply issues were resolved.

Strong Defence Pipeline

In July, HAL shares had witnessed a strong rally after the Defence Acquisition Council (DAC) cleared 10 major procurement deals worth Rs 1.05 lakh crore, all under the Buy (Indian–IDDM) category.

Despite a slight dip in net profit during the June quarter, HAL’s operating performance remained strong. The company’s Q1 FY26 net profit fell 3.7% year-on-year to Rs 1,383.8 crore, but revenue from operations grew 10.8% to Rs 4,819 crore.

Importantly, EBITDA rose nearly 30% to Rs 1,284 crore, with margins improving sharply to 26.7% from 22.8% last year.