Shares of Hindustan Aeronautics Ltd (HAL) rose as much as 3.5% on 20 August after the state-run military giant was expected to receive one of its largest orders ever.

According to government sources cited, the Cabinet Committee on Security approved the purchase of 97 Light Combat Aircraft (LCA) Mark1A fighters for around Rs 62,000 crore. A formal declaration would be a significant milestone for HAL, which has been developing the indigenous Tejas programme to replace India’s antiquated MiG-21 aircraft.

The LCA Mk1A, an updated variant of the Tejas, has been designed to improve combat capability. This will be the aircraft’s second major order after HAL signed a contract in February 2021. Deliveries are planned to begin this year, with six jets scheduled for FY26, following the resolution of previous engine supply issues.

Meanwhile, HAL reported a mixed performance in the June quarter. Net profit fell 3.7% year on year to Rs 1,383.8 crore, while income from operations increased 10.8% to Rs 4,819 crore. A better product mix and execution of its Rs 1.89 lakh crore order book improved operating performance – EBITDA increased over 30% to Rs 1,284 crore, with margins growing to 26.7% from 22.8% the previous year, confounding projections of decline.

With a strong order pipeline, improved profits, and a new wave of aircraft orders on the way, HAL remains at the forefront of India’s defence manufacturing push.

At 11:55 am, the shares of Hindustan Aeronautics were trading % higher at Rs 4,511.30 on NSE.

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