Synopsis :- Defence stock signs an MoU in Moscow for the production of the SJ-100 civil commuter aircraft in India.
The shares of India’s leading aircraft and helicopter manufacturer are in the spotlight after signing an MoU in Moscow with Russia’s United Aircraft Corporation (UAC) to manufacture SJ-100 Passenger Aircraft in India.
With the market capitalization of Rs. 3,15,701.93 crore, the shares of Hindustan Aeronautics Limited (HAL) is trading at Rs. 4,721.10 down by 0.75 percent from its previous day’s close price of Rs. 4,756.80 per equity share.
What’s the News?
Hindustan Aeronautics Limited (HAL) and Russia’s United Aircraft Corporation (UAC) have signed an MoU in Moscow for the production of the SJ-100 civil commuter aircraft in India. The SJ-100, a twin-engine narrow-body jet already used by over 16 airlines worldwide, is expected to boost short-haul connectivity under the UDAN scheme.
HAL will gain manufacturing rights for domestic customers, marking India’s first passenger aircraft production since the AVRO HS748 project ended in 1988. The partnership supports the ‘Aatmanirbhar Bharat’ initiative, addressing India’s estimated demand for over 200 regional jets in the next decade and creating significant employment opportunities in the aviation sector.
About the Company & Others
Hindustan Aeronautics Limited (HAL), founded in 1963 and granted Navratna status in 2007, is India’s leading aerospace and defense company, specializing in the design, development, manufacture, repair, and servicing of aircraft, helicopters, aero engines, avionics, and related systems. With five complexes, 20 production divisions, and ten R&D centers across India, as well as 12 joint ventures and two subsidiaries, HAL has produced 17 aircraft from in-house designs and 14 under license.
Currently, it manufactures Light Combat Aircraft (LCA), Tejas, Dornier Do228, ALH Dhruv, LCH, LUH, Su-30 MKI, Hawk AJT, and Chetak/Cheetal helicopters, with future projects including the HTT-40 trainer, naval utility helicopter, advanced LCA variants, and the Combat Air Teaming System (CATS).
A return on equity (ROE) of about 26.1 percent and a return on capital employed (ROCE) of about 33.9 percent demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 38.1x as compared to its industry P/E 68.9x.
For Q1 FY26, its revenue from operations grew by 10.83 percent from Rs. 4,348 crore in Q1 FY25 to Rs. 4,819 crore in Q1 FY26, however net profits decreased by 3.69 percent from Rs. 1,437 crore in Q1 FY25 compared to 1,384 crore in Q1 FY26.
Written by Akshay Sanghavi
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