In a strategic defence procurement move, a leading aerospace manufacturer has secured a significant contract with the Ministry of Defence, set to enhance the country’s aerial capabilities through the production of advanced fighter aircraft at its dedicated manufacturing facility.
Share Price Movement
The share price of Hindustan Aeronautics Limited went up by 2.02 percent to Rs. 4,755 per share on Friday, an increase from its previous close of Rs. 4,660 per share. The market capitalisation now stands at approximately Rs. 3,14,083 crore as of December 13, 2024.
Order Update
The Ministry of Defence has signed a contract worth Rs 13,500 crore with the HAL for the procurement of 12 Su-30MKI aircraft along with associated equipment. These aircraft will be manufactured at the Nasik division of HAL.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Hindustan Aeronautics’s consolidated revenue from operations has increased by 6 percent YOY from Rs. 5,636 crore in Q2 FY24 to Rs. 5,977 crore in Q2 FY25 and increased by 37.5 percent QoQ from Rs. 4,348 crore in Q4 FY24.
The company’s consolidated net profit has increased by 20.6 percent, from Rs. 1,235 crore in Q2 FY24 to Rs. 1,490 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 3.7 percent QoQ from Rs. 1,436 crore.
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Market Outlook
The Indian Aerospace and Defence (A&D) industry is heavily influenced by the Defence segment, dominated by Defence Public Sector Undertakings (DPSUs). Government policies and funding play a crucial role in its development. The Interim Union Budget 2024-25 has allocated Rs. 6,21,540.85 crore for defence, with Rs. 1,72,000 crore earmarked for capital expenditure, which includes modernisation and new equipment procurement.
The government aims to boost self-reliance through initiatives like “Atmanirbhar Bharat Abhiyan,” which promotes indigenous production. Five Positive Indigenisation Lists have been released, covering major defence platforms.
Shareholding Pattern
As of the September 2024 shareholding pattern, Hindustan Aeronautics Limited is primarily held by the promoters at 71.64 percent, foreign institutional investors hold 11.85 percent, and the public with 8.13 percent.
About Company
Hindustan Aeronautics Limited (HAL) is a leading aerospace and defence company in India, founded on December 23, 1940. Headquartered in Bengaluru, Karnataka, it is a public sector undertaking owned by the Government of India. HAL specialises in the design, development, manufacturing, and maintenance of a wide range of aerospace products, including aircraft, helicopters, avionics, and engines, serving both military and civilian needs.
Written by Fazal Ul Vahab C H
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