HAL ready for take off

The Government of India is expected to sign the largest-ever defense aviation contract with Hindustan Aeronautics Ltd (HAL), worth Rs.66,500 crore for 97 Tejas Mk-1A fighter jets. This will take the total Tejas order book to 180 aircraft, making it India’s biggest indigenous fighter aircraft procurement.

HAL’s current order book is at Rs.94,000 crore (Q1FY26) and with this new order, it will cross Rs1.6 lakh crore, ensuring 10-12 years of revenue visibility. Estimated time for delivery is 8 to 10 years.  Based on our internal calculations, annualized revenue contribution from Tejas alone could be Rs.7,000 to 8,000 crore.

This Rs. 66,500 crore Tejas deal is a gamechanger as HAL transforms into a long-cycle While HAL is the nodal contractor, a large ecosystem of Indian companies will share in the execution, meaning it’s an overall growth story and not just cyclical PSU. BEL Mazagon Dock Shipbuilders (MDL), Cochin Shipyard (CSL), GRSE, BDL, and private sector too will benefit, mainly - L&T, Dynamatic Technologies, Data Patterns, Astra Microwave, Paras Defence, IdeaForge.

The stock price of HAL is stable and steady currently, no big upheavels or slides downwards… its like waiting for the news to come in. The stock, which had closed yesterday at Rs.4723.45, opened today at Rs.4744.95 and rose to an intraday high at Rs.4782.85.