Hindustan Aeronautics Limited (HAL) is in the spotlight after the Indian government approved a major defense order worth around ₹62,000 crore. The order covers 97 Light Combat Aircraft (LCA) Tejas Mk1A fighter jets, giving a huge boost to the company’s order book and investor confidence.
On Wednesday, August 20, 2025, HAL’s stock price jumped over 2.87% in early trading, hitting an intraday high of ₹4,611.6 per share on the BSE. This strong rally stood out even as the broader market remained weak, showing that investors are responding positively to HAL’s growing strength in defense manufacturing.
A Game-Changer for HAL’s Order Book
The fresh government order for 97 Tejas Mk1A aircraft marks a milestone for HAL and India’s indigenous defense sector. This comes after the earlier deal for 83 jets, bringing the Indian Air Force’s (IAF) total order for this variant to 180 aircraft.
Analysts describe this as a “game-changer” for HAL. It provides long-term revenue visibility and strengthens the company’s production plans for years ahead. HAL’s order book was already valued at about ₹1,89,302 crore in March 2025. With this new contract, the company now enjoys one of the strongest order pipelines in its history, ensuring stability and growth.
For India, this is also a significant step in reducing dependence on imported aircraft. The Tejas program is central to the government’s push for self-reliance in defense under the “Atmanirbhar Bharat” initiative.
Tackling Production Challenges
The Tejas Mk1A program has not been free from challenges. One of the biggest hurdles was the delay in receiving the F404-IN20 engines from GE Aerospace in the United States. These engines are critical to the aircraft’s production schedule.
However, recent reports suggest that supplies are improving, and HAL is now in a stronger position to meet its delivery commitments. The company has pledged to deliver 12 Mk1A aircraft by the end of FY2025-26. A third production line at HAL’s Nashik facility will also support this goal, helping scale up output.
The Mk1A variant itself is a significant improvement over earlier versions of the Tejas. It comes with upgraded avionics, modern radar systems, and a higher indigenous content of more than 65%. This makes it not just a capable fighter jet but also an important symbol of India’s defense manufacturing capability. Moreover, the program is expected to generate opportunities for hundreds of small and medium enterprises that supply components, creating a wider economic impact.
HAL share Analyst Ratings and Market Sentiment
The market response to HAL’s latest development has been largely positive. Several brokerage firms and market analysts have either maintained or upgraded their “Buy” rating on the stock. Some experts have set ambitious price targets of up to ₹5,800 per share, citing strong order visibility and the government’s ongoing support for the defense sector.
Kranthi Bathini, Director at WealthMills Securities, advised investors to hold HAL shares and even accumulate more during market dips. He emphasized that while execution challenges may arise, the overall outlook remains strong given the size of the order and the company’s growing role in India’s defense ecosystem.
Outlook: HAL as a Key Defense Player
Looking ahead, HAL appears well positioned for sustained growth. The combination of a massive order pipeline, government support for indigenization, and the IAF’s need to modernize its fleet creates a favorable environment for the company.
With older aircraft like the MiG-21s being phased out, the Tejas Mk1A will become a backbone of the IAF. HAL’s leadership in producing these fighters strengthens its position not just as a manufacturer but also as a strategic partner in India’s defense readiness.
The company’s achievements highlight the progress India has made in building advanced aerospace capabilities. As HAL continues to deliver on its commitments, it is expected to remain a star performer in the stock market and a cornerstone of India’s defense industry.
F.A.Q.
– Why did HAL’s share price rise recently?
HAL’s share price jumped after the Indian government approved a massive order worth ₹62,000 crore for 97 LCA Tejas Mk1A fighter jets, boosting investor confidence.
– What is the total number of Tejas Mk1A aircraft ordered by the Indian Air Force?
With the latest order of 97 jets, along with an earlier order of 83, the total stands at 180 Tejas Mk1A aircraft.
– How does this order impact HAL’s order book?
The new deal significantly strengthens HAL’s order book, which already stood at about ₹1,89,302 crore as of March 2025, ensuring revenue visibility for years ahead.
– What production challenges has HAL faced in the Tejas program?
The main challenge has been delays in receiving F404-IN20 engines from GE Aerospace. However, supplies are now improving, and HAL is scaling up production with a third line in Nashik.
– What are analysts saying about HAL’s future stock performance?
Most analysts remain positive, with some setting price targets as high as ₹5,800 per share. They recommend holding the stock and buying on dips due to HAL’s strong growth prospects.
Also read:-