Hindustan Aeronautics Ltd (HAL) gained nearly 3% on the BSE today after the Union Cabinet approved a procurement order worth about Rs 62,000 crore for 97 Tejas Mk1A fighter jets.

The order, one of the largest for the indigenously developed light combat aircraft, reinforces the government’s push for self-reliance in defence manufacturing under the “Atmanirbhar Bharat” initiative. Analysts said the fresh deal will significantly enhance HAL’s order book, providing multi-year revenue visibility and strengthening its position as a key beneficiary of India’s growing defence expenditure.

Brokerages expect this contract to improve earnings visibility over the medium to long term, while also boosting investor confidence in HAL’s growth trajectory. The stock has been on an uptrend over the past year, supported by strong financials and a robust pipeline of defence contracts. Today’s gains reflected optimism that the new order will drive further re-rating of the stock, though analysts cautioned that execution timelines and margin profile will be closely tracked.