HAL share price: Defence stock jumps over 3% on report of govt nod to buy 97 LCA Mark 1A fighter jets for ₹62,000 cr
The Cabinet Committee on Security cleared the acquisition of 97 LCA Mark 1A fighter jets for the Indian Air Force (IAF) at a cost of ₹ 62,000 crore, ANI reported, quoting defence sources. The approval, granted in a high-level meeting, paves the way for Hindustan Aeronautics Ltd to scale up production of the indigenous aircraft.
This marks the second major order for LCA Mark 1A fighters, following the earlier contract for 83 aircraft valued at around ₹ 48,000 crore. The new Tejas jets will replace the ageing MiG-21 fleet, which is being phased out by the government in the coming weeks, the report added.
The LCA Mark 1A is equipped with advanced avionics and radars compared with the initial batch of 40 LCAs already supplied to the IAF. The indigenous content in the new aircraft is expected to exceed 65%.
The move aligns with Prime Minister Narendra Modi's push for self-reliance in defence manufacturing.
HAL has secured a pipeline of projects to build a range of indigenous fighter jets, helicopters, and their engines. In addition, the company is expected to bag contracts for more than 200 LCA Mark 2 aircraft and a similar number of fifth-generation Advanced Medium Combat Aircraft (AMCA).
Krishna Doshi, Defence Analyst at Ashika Institutional Equities said that the recent order for additional Mk1A fighter jets is a significant positive for Hindustan Aeronautics, taking the total contracted fleet to 180 aircraft (including the earlier order of 83 units).
'This development not only strengthens HAL's growth visibility but also acts as a strong catalyst for the broader domestic defence ecosystem. Furthermore, the company's Q1 performance exceeded expectations, reinforcing our constructive stance on the stock. That said, timely supply of GE404 engines remains a key monitorable, with only two units delivered so far,' Doshi said.
Nevertheless, HAL has committed to delivering 12 Mk1A aircraft by FY26-end, which will be crucial given the Indian Air Force's growing operational requirements, she added.
Prashanth Tapse, Sr VP Research – Research Analyst at Mehta Equities also noted that the significant order has boosted investor confidence, taking HAL's order book to over ₹ ₹ 2.51 lakh crore, a sharp rise from ₹ 94,127 crore a year ago.
'Backed by the government's strong push for domestic defence manufacturing under the Make in India initiative, HAL is strategically positioned as a pure defence play with promising long-term revenue visibility,' Tapse said.
On the technical front, HAL share price stock shows strength with a short-term target range of ₹ 4,800 – ₹ 5,000, while support lies below ₹ 4,320, making it an attractive opportunity for both investors and traders, Tapse said.
Hindustan Aeronautics share price has fallen 2% in one month and declined 6% in three months, but the defence stock has rallied 33% in six months and has gained 10% on a year-to-date (YTD) basis. HAL share price has jumped 140% in two years, while the PSU defence stock has delivered multibagger returns of 660% in the past five years.
At 9:20 AM, HAL share price was trading 1.70% higher at ₹ 4,528.54 apiece on the BSE.
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