Synopsis:
The company plans a ₹2,000 crore Dornier deal and a ₹65,000 crore Sukhoi upgrade, with LCH rollout by FY28. Targeting 8–10% revenue growth, it will invest ₹7,000 crore in R&D, focusing on MRO and UCAVs.
India’s defence sector is witnessing rapid growth, with a record budget allocation of Rs 6.81 lakh crore (about US$81 billion) for 2025-26, a 9.5% increase from last year. Defence production reached Rs 1.27 lakh crore in FY 2023-24, while exports hit Rs 21,083 crore, reflecting India’s push for self-reliance and global competitiveness in defence manufacturing.
With a market capitalisation of Rs 3.27 lakh crore, the shares of Hindustan Aeronautics Ltd were trading at Rs 4,928.00 per share, increasing around 0.84 percent as compared to the previous closing price of Rs 4,886.80 apiece.
Hindustan Aeronautics Ltd (HAL) anticipates closing a Rs 2,000 crore Dornier aircraft order in 2025. The Rs 65,000 crore Sukhoi-30 upgrade for 84 aircraft, recently cleared by the DAC, will span five years. HAL also plans to roll out its first Light Combat Helicopter (LCH) in FY28, reinforcing its defence manufacturing pipeline.
HAL is targeting 8–10% revenue growth and aims to invest Rs 7,000 crore in R&D over five years, with a strong push toward civil MRO and future UCAV capabilities. The company expects to maintain current EBITDA levels and confirmed no plans for further government stake dilution, signaling strategic stability and focused long-term expansion.
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Operational highlights
HAL’s capex plan for the five years from FY25 to FY29 is estimated at Rs 14,000–15,000 crore, a senior HAL executive told. Capital expenditure is broadly the purchase or creation of long-term assets such as new equipment.
Moreover, HAL plans to invest Rs 600 crore to build a 20,000-tonne isothermal press, a 50,000-tonne hydraulic press for engine and aerostructure forgings, and a carbon fibre facility. These upgrades aim to enhance HAL’s capabilities in producing high-value aerospace components and advanced materials.
Furthermore, the company is investing in R&D to boost indigenous innovation, allocating Rs 4,000 crore for the IMRH programme and Rs 2,000 crore for the Utility Helicopter-Marine variant. Deliveries of HTT-40, civil ALH, and LCH are set for FY26; naval helicopters by FY27.
Additionally, Hindustan Aeronautics Ltd (HAL) plans a capital expenditure of Rs 3,000 crore in FY26, aiming to boost production and invest in new defence projects. To partially fund this, HAL is exploring the monetization of its non-core land assets in Delhi as part of its broader investment strategy.
Hindustan Aeronautics Ltd (HAL) reported a robust order book rise to ₹1,89,300 crores from ₹94,127 crores YoY, post ₹30,105 crores turnover liquidation. The surge stems from ₹1,02,337 crores in new contracts, including 240 AL-31FP engines, 156 LCH Prachand, 12 Sukhoi-30MKIs, and multiple aircraft upgrade programs.
Written by Abhishek Singh
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