Hindustan Aeronautics shares are flying high in Tuesday’s trade after the company received two orders from the Ministry of Defence worth Rs 62,700 crore to supply 156 Light Combat Helicopters Prachand to the Indian Army and Indian Air Force. HAL’s share price shot up 6% to an intra-day high of Rs 4,444.95 on the National Stock Exchange. It is currently up 3% (as updated at 12:20 pm).
HAL- Big order win
This is the single biggest procurement by MoD from HAL to date. “We wish to inform that the Ministry of Defence signed two contracts with the Company today for the supply of 156 Light Combat Helicopters (LCH), Prachand to the Indian Army (90 Nos) and Indian Air Force (66 Nos) along with training and other associated equipment worth around Rs. 62,700 Crore excluding taxes,” said HAL in an exchange filing.
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In FY25, the company recorded a revenue of Rs 30,400 crore, compared to a revenue of Rs 30,381 during the last financial year, the numbers are provisional and unaudited.
“This achievement was despite the shortfall in deliveries of LCA and ALH. The deliveries of LCA were affected due to non-availability of engines. The ALH delivery schedule too got hit due to the accident in January 2025 and subsequent grounding of the Fleet,” said Dr D K Sunil, CMD, HAL. Recently, HAL was in soup after the Indian Air Force Chief called out for not delivering the light combat fighter jet Tejas.
The company’s order book stood at Rs 1.84 lakh crore as against the opening order book position of Rs 94,129 crore in FY25. For the financial year 2025, HAL received new manufacturing contracts of Rs 1.02 lakh crore and ROH contracts of Rs 17,500 crore.
HAL is UBS’ top defence pick
The brokerage house UBS has picked HAL as its top defence pick with a ‘Buy’ rating, raising the target price to Rs 5,440. It is an upside of 13.3% from its previous price target of Rs 4,800. “Commencement of engine delivery by GE with accelerated delivery schedule should address issues around execution and recent fast-tracking of award for LCH Prachand should address concerns around slowing defence spend,” said UBS in a research note.
The company is ramping up its delivery and execution,
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