Hindustan Aeronautics Limited (HAL) expects its order book to grow to ₹2.5 trillion in FY26, as orders for 97 Light Combat Aircraft (LCA) Tejas Mk-1A and 156 Light Combat Helicopters (LCH) Prachand, worth ₹1.3 trillion, are nearing final clearance. These orders are expected to be confirmed within the next 3-6 months, HAL Chairman and Managing Director (CMD) DK Sunil announced during a press conference at Aero India 2025 in Bengaluru.
HAL is actively working on securing additional orders, with an expected ₹1.65 trillion worth of contracts in the next 12 months. These include:
With these additions, HAL’s total order book is projected to reach ₹2.5 trillion by the end of FY26, even after considering the execution of ongoing projects.
In the first 9 months of FY25, HAL received new orders worth ₹55,800 crore, including:
As of December 2024, HAL’s total order book stands at approximately ₹1.33 trillion.
HAL has achieved Maharatna status, making it the first defence public sector company to earn this recognition. In FY24, it recorded the highest-ever revenue from operations of ₹30,381 crore, with double-digit growth.
Addressing concerns over production delays, the CMD confirmed that HAL will ramp up its LCA Tejas manufacturing capacity. From FY26, the company plans to produce 24 LCAs annually, operating from three production facilities—2 in Bengaluru and 1 in Nasik. The first LCA from the Nasik facility is expected to roll out by March 2025.
The delivery of LCA Mk-1A aircraft was initially scheduled for February 2024 but faced delays due to supply chain issues with GE Aerospace’s F404-IN20 engines. To continue production, HAL used reserve engines from previous Tejas variants. GE has now resolved the supply issue and committed to delivering 12 engines this year.
HAL has already built 3 LCA Mk-1A jets, with a total of 11 aircraft expected to be completed by the end of FY26. The company aims to deliver all LCA Mk-1As by 2031-32.
Despite its strong domestic order pipeline, HAL faces challenges in securing export contracts for its indigenous aircraft. The company is focusing on international markets in Southeast Asia, North Africa, and South America. To boost exports, the Indian government is working on providing lines of credit (LoCs) to potential buyers.
The Indian Air Force (IAF) has already placed an order for 83 LCA Mk-1A jets at ₹36,468.63 crore. Additionally, it has moved forward with plans to acquire 97 more LCA Mk-1A aircraft, for which an Acceptance of Necessity (AoN) has been granted. The estimated cost for this order is ₹65,848 crore, and the Contract Negotiation Committee (CNC) process is ongoing.
Once all these orders are finalized, the IAF will have a total of 220 Tejas fighter jets across Mk-I and Mk-1A variants.
HAL is on track for significant order growth in the coming years, with plans to expand production and meet the needs of the Indian defence sector. However, export opportunities remain a key challenge, and the company is actively working to secure deals with friendly foreign nations.
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Published on: Feb 12, 2025, 12:21 PM IST
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