HAL Stock Rises on ₹2.7 Lakh Crore Tejas Jet Order Boost

The Defence Ministry’s order for 97 Tejas MK 1A fighter jets marks a pivotal moment for Hindustan Aeronautics Ltd, solidifying its position as the cornerstone of India’s military aviation. This single order significantly bolsters the company’s financial outlook, pushing its total order book to an impressive Rs 2.7 lakh crore, with completion targeted by FY27. The announcement immediately resonated with investors, driving the HAL stock price to a day’s high. This substantial order book not only provides multi-year revenue certainty but also validates the government’s continued commitment to the ‘Make in India’ initiative in the defence sector.

With this latest procurement, the total number of Tejas jets on order now stands at 180, a portfolio expected to be delivered by FY32. HAL’s Chairman and Managing Director, DK Sunil, emphasized the advanced capabilities of the Tejas MK 1A, describing it as a 4.5-generation aircraft equipped with beyond-visual-range missiles and laser-guided bombs. Crucially, he highlighted that all design, software, hardware, and manufacturing for the jet are done domestically, a point of significant national pride and strategic importance.

To meet this escalating demand, HAL is executing an aggressive production expansion plan. The company has already invested approximately Rs 2,000 crore to establish three production lines, with the private sector contributing a fourth. The immediate focus is on delivering the first Tejas MK 1A this month, followed by three more by the end of October. Ten aircraft are already on the flight line, ready for delivery within the current fiscal year. The overarching target is to achieve a production rate of 30 jets annually by 2027, a substantial increase from the current capacity.

A critical component of this scaling effort is securing a reliable supply of engines. CMD DK Sunil provided a key update, confirming that price negotiations with General Electric (GE) for an additional 113 engines have been completed. The final contract is expected to be signed in October. The supply chain is already in motion, with three GE engines received, nine more anticipated this fiscal year, and 20 due next year. This steady inflow is essential to support the goal of producing over 12 aircraft annually from 2026 onwards.

While the Tejas program forms the backbone of HAL’s current growth, the company is already laying the groundwork for the future. DK Sunil revealed significant interest in the ambitious 5th-generation Advanced Medium Combat Aircraft (AMCA) fighter program, with 28 entities expressing a desire to partner with HAL. Collaborations for this next-generation project are slated to be finalized by the end of October, signaling the next phase of India’s journey towards self-reliance in cutting-edge military technology.

The combination of a record order book, a clear path to ramped-up production, and forward-looking projects like the AMCA paints a compelling picture for Hindustan Aeronautics Ltd. The positive market sentiment, reflected in the stock’s upward movement, is a direct response to this strong operational and strategic positioning. As HAL continues to deliver on its promises and expand its indigenous capabilities, it solidifies its role not just as a corporate entity, but as a vital asset to India’s national security framework.