HAL Share Price Hits 3-Month High After Receiving ₹62,777 Crore Order from Ministry of Defence

Hindustan Aeronautics Limited (HAL) announced provisional and unaudited revenue figures for the financial year 2024–25, reporting ₹30,400 crore, marginally up from ₹30,381 crore in FY24. This steady performance comes despite supply chain challenges and delivery disruptions.

Deliveries of the Light Combat Aircraft (LCA) were delayed due to engine shortages, and the Advanced Light Helicopter (ALH) schedule faced setbacks following an accident in January 2025 that led to a temporary grounding of the fleet. Nevertheless, the company accelerated deliveries of other products and services to maintain revenue levels.

HAL share price surged to a fresh 3-months high at ₹4,444.95 on NSE. At 9:52 AM, the stock price was trading higher by 3.42% at  ₹4,318.85. 

Massive Growth in Order Book

HAL’s order book showed significant growth, standing at ₹1,84,000 crore at the close of FY25, up from ₹94,129 crore at the beginning of the year, after accounting for order execution. New manufacturing contracts worth ₹1,02,000 crore and Repair & Overhaul (ROH) contracts totalling ₹17,500 crore contributed to this robust pipeline.

Among the standout deals was the Ministry of Defence’s order for 156 Light Combat Helicopters (LCH) “Prachand”, valued at ₹62,777 crore, the single largest procurement from HAL to date.

Capacity Expansion to Meet Demand

To meet the growing order book, HAL has ramped up its manufacturing capabilities. The company added new production lines for the LCA and ALH and enhanced aero-engine capacity at its Koraput facility. These expansions are expected to support increased output in the coming fiscal year.

Key Contracts and Achievements

FY25 saw HAL attain several major milestones:

• Achieved ‘Maharatna’ status, becoming the first Defence PSU to do so.
  
• Signed contracts for 12 additional Su-30 MKI fighter aircraft.
  
• Commenced the Mid-Life Upgrade (MLU) of 40 Do-228 aircraft.
  
• Secured orders for 240 AL31FP engines for Su-30 MKI aircraft.
  
• Took on an avionics upgrade project for an IL-78 aircraft.
  
• Delivered the first AL31FP engine within a month of signing the contract.

Conclusion

With supply chain issues showing signs of easing and capacity enhancements in place, HAL appears poised for a stronger performance in FY26. The company anticipates both physical and financial indicators to reflect continued momentum, driven by the healthy order pipeline and strategic partnerships with the defence sector.

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