HAL Share Price Gains as Cabinet Clears ₹62,000 Crore Tejas Fighter Jet Order
Hindustan Aeronautics Limited (HAL) shares saw a sharp rise of nearly 3.5% on Wednesday, August 20, 2025, after the Cabinet Committee on Security approved the acquisition of 97 Light Combat Aircraft (LCA) Mk1A fighter jets worth ₹62,000 crore. This marks one of the biggest orders in HAL’s history, strengthening its already robust defence pipeline and giving a major boost to the HAL share price.
HAL Share Price Performance
On the NSE, shares of HAL touched an intraday high of ₹4,605 before settling around ₹4,578.80, up nearly 3% in early trade. The stock has shown volatility in recent months, being down about 8% in the last three months, but the new Tejas order has revived investor sentiment.
Massive Order for Tejas Mk1A Fighter Jets
The LCA Mk1A, an upgraded variant of the indigenously developed Tejas aircraft, has been designed for enhanced combat capabilities. Deliveries are set to begin in FY26, with six jets scheduled for the first phase. The order comes after an earlier contract in February 2021 and highlights India’s commitment to replacing its ageing MiG-21 fleet with advanced indigenous technology.
Analysts believe this contract will significantly enhance HAL’s order book, which already stands at ₹1.89 lakh crore. Brokerage firm UBS has maintained a ‘neutral’ stance on HAL, with a target price of ₹4,900, citing execution and timely deliveries as key factors for future growth.
HAL Financial Performance: Q1 FY26 Results
Hindustan Aeronautics Limited reported a mixed performance in its June quarter (Q1 FY26) results. While net profit fell 3.7% year-on-year to ₹1,373.49 crore, revenue from operations rose 10.8% YoY to ₹4,819.01 crore.
The company delivered strong operational efficiency as EBITDA rose nearly 30% to ₹1,284 crore, with margins expanding to 26.7% from 22.8% a year ago. Motilal Oswal expects HAL’s revenue visibility to improve further as engine supplies from GE ramp up, supporting faster aircraft deliveries.
HAL Quarterly Performance (Consolidated)
| Quarter | Revenue (₹ Crore) | Net Profit (₹ Crore) | EPS (₹) |
|---|---|---|---|
| Jun 2024 | 4,347.50 | 1,431.11 | 21.49 |
| Sep 2024 | 5,976.29 | 1,498.46 | 22.59 |
| Dec 2024 | 6,957.31 | 1,434.36 | 21.53 |
| Mar 2025 | 13,699.85 | 3,959.47 | 59.46 |
| Jun 2025 | 4,819.01 | 1,373.49 | 20.69 |
HAL Annual Performance (Consolidated)
| Year | Revenue (₹ Crore) | Net Profit (₹ Crore) | EPS (₹) | ROE (%) |
|---|---|---|---|---|
| 2021 | 22,754.54 | 3,234.25 | 96.87 | 21.01 |
| 2022 | 24,620.02 | 5,080.11 | 151.92 | 26.30 |
| 2023 | 26,927.46 | 5,824.86 | 174.28 | 24.72 |
| 2024 | 30,381.08 | 7,594.45 | 113.95 | 26.15 |
| 2025 | 30,980.95 | 8,323.40 | 125.07 | 23.91 |
Dividend and Corporate Actions
HAL has also rewarded shareholders with strong dividend payouts. The company announced a final dividend of ₹15 per share (300%) effective August 21, 2025. Earlier in February 2025, it declared an interim dividend of ₹25 per share (500%).
Additionally, HAL had a stock split on September 28, 2023, where the face value was changed from ₹10 to ₹5, making shares more affordable for retail investors.
HAL Share Price Outlook
With a strong order book, government backing, and the landmark ₹62,000 crore Tejas jet deal, HAL remains at the centre of India’s defence manufacturing growth story. The focus on Atmanirbhar Bharat (self-reliance) in defence ensures long-term demand for HAL’s products.
While near-term challenges like execution risks and engine supply constraints may affect delivery schedules, HAL’s consistent revenue growth, improving margins, and shareholder-friendly dividends make it a stock to watch in the defence sector.
Conclusion
The approval of the ₹62,000 crore Tejas Mk1A order marks a new chapter for HAL. With its share price showing positive momentum, strong financials, and consistent dividend payouts, HAL continues to remain a key player in India’s aviation and defence manufacturing sector.
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