HAL to Deliver 12 LCA Mk1A Fighter Jets to Indian Air Force This Year

Hindustan Aeronautics Limited (HAL), the government-owned aerospace and defence manufacturing enterprise, made a key announcement on Friday. With engine supplies commencing from American tech giant General Electric, HAL expressed confidence in delivering 12 Light Combat Aircraft (LCA) Mk1A fighter jets to the Indian Air Force (IAF) this year. Company representatives, speaking during the announcement of financial results, stated that the first fighter jet would be ready within the next two months.

The Tejas LCA Mk1A is an advanced version of the indigenous Light Combat Aircraft developed by HAL. It is a 4.5-generation multirole fighter jet featuring modern combat capabilities, enhanced survivability, and operational efficiency.

Robust Order Book Worth ₹1.89 Lakh Crore

HAL revealed that as of April 2025, its order book stood at approximately ₹1.89 lakh crore. This is a significant increase from ₹94,000 crore recorded during the same period last year. The aircraft and helicopter manufacturer projected revenue growth of 8 to 10 percent for the financial year 2025–26.

Discussing potential future orders, the company stated that orders for an additional 97 LCA Mk1A fighter jets, 143 Advanced Light Helicopters (ALHs) for the Indian Air Force, and 10 Dornier aircraft for the Indian Navy are expected. These upcoming orders are estimated to be worth around ₹1.25 lakh crore.

Plans for Production Expansion

To manufacture the LCA Mk1A fighter jets, HAL has established two production lines—one each in Bengaluru and Nashik. The company announced plans to expand its aircraft and helicopter manufacturing capacity in response to rising demand. Notably, enhancing production capability at the Nashik factory in Maharashtra is considered crucial for the timely delivery of aircraft and helicopters.

In a move to ensure timely delivery of these defence platforms to the IAF, HAL is planning a capital expenditure of ₹14,000 crore to ₹15,000 crore over the next five years. This translates to an annual investment of about ₹3,000 crore.

Positive Momentum in Defence Sector Stocks

On Friday, HAL’s share price rose by 5 percent. The success of ‘Operation Sindhur’ has led to expectations of an accelerated flow of orders to domestic defence companies. Additionally, following the Pahalgam terror attack and rising tensions with Pakistan, market analysts anticipate an increase in the government's defence budget, which has contributed to a generally positive sentiment in defence sector stocks.