HAL share price up amid defence boost and engine delivery

Hindustan Aeronautics Limited (HAL) shares have shown a notable uptick, opening at Rs 4,352 on May 9, 2025, reflecting over 2 per cent increase over the previous close. This surge is attributed to the delivery of the first F404-IN20 engine from GE Aerospace for the Tejas Mk-1A fighter jet program and escalating defence sector activities amid geopolitical tensions.

About HAL

Established in 1940, HAL is a government-owned aerospace and defence company headquartered in Bengaluru, India. It specialises in the design, development, manufacture, and maintenance of aircraft, helicopters, and related systems, serving as a key supplier to the Indian Armed Forces.

What's driving the share price?

1. Engine delivery for Tejas Mk-1A: The recent delivery of the F404-IN20 engine by GE Aerospace marks a significant milestone in the Tejas Mk-1A program. This engine is crucial for the production of 83 Tejas Mk-1A aircraft, an order valued at Rs 48,000 crore. Analysts view this development as a positive step toward resolving previous supply chain challenges.

2. Geopolitical tensions: Rising tensions between India and Pakistan have led to increased focus on defence stocks. On May 9, 2025, defence-related stocks, including HAL, gained amid escalating border tensions.

3. Strong order book: HAL reported a revenue of Rs 30,400 crore for the financial year 2024-25, despite delays in LCA and ALH deliveries. The company expanded its production capacities, secured significant new contracts, and achieved Maharatna status. HAL is poised for improved performance in FY 2025-26.

Value Research Ratings

• Quality Score: 10/10
  
• Growth Score: 6/10
  
• Valuation Score: 2/10
  
• Momentum Score: 7/10
  
• Overall Rating: 4 stars

What it means for investors

The delivery of the F404-IN20 engine is a positive indicator for HAL's production capabilities and future revenue streams. With a strong order book and improved supply chain dynamics, HAL appears poised for sustained growth. Investors may find the current developments encouraging for long-term prospects.

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Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.