Synopsis: Hindustan Aeronautics Limited shares fell 4.72% after the IAF grounded around 30 Tejas jets following a runway incident, amid ongoing delivery delays and concerns over the ₹1.5-2 lakh crore AMCA project bidding.
This Defence Stock, engaged in designing, manufacturing, upgrading, and overhauling aircraft, helicopters, aero-engines, and avionics for defence and aerospace needs, crashed 4.72 percent after reports said the Indian Air Force grounded its fleet of around 30 Tejas jets following a runway incident involving suspected brake failure, raising concerns over deliveries and ongoing project execution delays.
With a market capitalization of Rs. 2,70,118.22 crores, the share of Hindustan Aeronautics Limited has reached an intraday low of Rs. 3,975.80 per equity share, down nearly 4.72 percent from its previous day’s close price of Rs. 4,172.80. Since then, the stock has recovered and is currently trading at Rs. 4,039 per equity share.
Reason for the Fall
Hindustan Aeronautics Limited’s share declined 4.72 percent after a PTI report said that the Indian Air Force (IAF) grounded its entire fleet of around 30 single-seat Tejas jets for detailed technical checks. The move followed an incident earlier this month in which a Tejas light combat aircraft suffered major airframe damage after overshooting the runway at a frontline airbase, reportedly due to a suspected brake failure. The pilot ejected safely on February 22 after returning from a training sortie.
This was the third accident involving Tejas jets in recent years. The first crash occurred in March 2024 near Jaisalmer, while the second took place in November 2025 during an aerial display at the Dubai Airshow. Following the latest incident, the IAF decided to ground the fleet as a precautionary measure for extensive scrutiny.
The recent development comes at a time when Hindustan Aeronautics Limited has been facing delays in delivering the Tejas Mk-1A fighter jets to the Indian Air Force (IAF). In February 2021, the defence ministry signed a Rs. 48,000 crore contract with HAL for the supply of 83 Tejas Mk-1A aircraft. Later, in September last year, the ministry placed another large order worth Rs. 62,370 crore for 97 additional jets, further strengthening HAL’s order book.
However, deliveries have been delayed mainly due to GE Aerospace missing multiple deadlines for supplying the F404 aero engines required for the aircraft. HAL’s management has clarified that production and execution are not concerns, stating that 14 LCA Mk1A jets are already ready and that 24 aircraft are expected to be ready by the end of FY2026.
Earlier this month, Hindustan Aeronautics Limited’s share price had also fallen nearly 15.64 percent in February 2026 after reports suggested that the company was not included in the bidding process for the Advanced Medium Combat Aircraft (AMCA) project, valued between Rs. 1.5 lakh crore and Rs. 2 lakh crore.
Order Book Details
Hindustan Aeronautics Limited (HAL) has a strong order book of around Rs. 1,90,000 crore as of June 30, 2025, compared to Rs. 94,000 crore in March 2024. This large order pipeline gives the company clear revenue visibility for the coming years and highlights its strong position in India’s defence sector.
In FY2025, Hindustan Aeronautics Limited secured several major manufacturing orders. These include Rs. 62,000 crore for 156 Light Combat Helicopters, about Rs. 25,000 crore for 240 AL-31FP engines for the Su-30MKI fleet, Rs. 12,000 crore for 12 Su-30 MKI aircraft, and nearly Rs. 5,000 crore in other contracts. It also received repair and overhaul orders worth around Rs. 20,000 crore.
Management Guidance
Hindustan Aeronautics Limited reported revenue of Rs. 30,981 crore in FY2025 and has guided for 8-10 percent year-on-year growth in FY2026-27, supported by a strong order book and steady execution of defence manufacturing contracts.
Company Overview
Hindustan Aeronautics Limited (HAL) is India’s premier aerospace and defence company, headquartered in Bengaluru. It engages in designing, developing, manufacturing, upgrading, and overhauling aircraft, helicopters, aero-engines, avionics, and aerospace structures for military and civilian needs. HAL serves the Indian armed forces, space agency ISRO, and defence research bodies like DRDO, producing fighter jets, transport planes, utility helicopters, and related systems.
Recent Quarter Results
Coming into financial highlights, Hindustan Aeronautics Limited’s revenue has increased from Rs. 6,957 crore in Q3 FY25 to Rs. 7,699 crore in Q3 FY26, which has grown by10.67 percent. The net profit has also grown by 29.65 percent from Rs. 1,440 crore in Q3 FY25 to Rs. 1,867 crore in Q3 FY26. Hindustan Aeronautics Limited’s revenue and net profit have grown at a CAGR of 7.64 percent and 23.74 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 33.9 percent and 26.1 percent, respectively. Hindustan Aeronautics Limited has an earnings per share (EPS) of Rs. 133, and it’s almost a debt-free company.
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