3 days ago
Hindustan Aeronautics shares in focus today as helicopter fleet gets operational clearance post grounding
By Aditya Bhagchandani Published on June 11, 2025, 09:38 IST
Shares of Hindustan Aeronautics Limited (HAL) were in focus on June 11, trading 0.47% higher at ₹5,135.90 in early hours, after both its Dhruv Advanced Light Helicopters (ALH) and Prachand Light Combat Helicopters were cleared for flying, as per TOI reports. The clearance comes months after a fatal ALH crash in Porbandar on January 5, which led to a complete grounding of HAL's rotary platforms across the Army, Air Force, Navy, and Coast Guard.
The helicopters were cleared following the replacement of specific components, based on findings by a defect investigation committee. This clearance paves the way for resumed operations and deliveries, which HAL management previously said had impacted Q4 FY25 revenues and margins. With operations now restored, Q1 FY26 onwards is expected to reflect positive contributions from the helicopter segment.
The Indian Army, which has over 180 ALHs including 60 weaponised versions (Rudra), was the most affected by the grounding. The Indian Air Force operates 75 ALHs, the Navy 24, and the Coast Guard 19. Additionally, the IAF has 10 Prachand choppers while the Army has five. Notably, in March 2025, the Defence Ministry signed a ₹62,700 crore contract for 156 Prachand helicopters, with 90 units allotted to the Army and 66 to the IAF.
Brokerage View
According to Antique Broking, Hindustan Aeronautics (Rating: Buy, Target Price: ₹6,545) is set to be a key beneficiary of India's long-term air force modernisation strategy. With the Indian Air Force looking to expand from 32 to 42 squadrons, over 300 new aircraft may be required in the coming years. HAL is well-positioned to capture this opportunity with indigenous platforms like the Tejas Mk-1A, Mk-II, and the fifth-generation AMCA.
Production challenges due to delays in engine deliveries from GE are also easing. The first engine was delivered in Q1 FY26, and 12 more are expected within the fiscal year. The execution of the 83-aircraft Tejas Mk-1A order is now expected to accelerate, with prospects of a follow-on order for an additional 97 jets.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
