HAL share price rallied over 3% on Wednesday after the government approved the project to buy 97 Tejas aircrafts for ₹62,000 crore. The defence stock gained as much as 3.56% to ₹4,611.60 apiece on the BSE.
The Cabinet Committee on Security cleared the acquisition of 97 LCA Mark 1A fighter jets for the Indian Air Force (IAF) at a cost of ₹62,000 crore, ANI reported, quoting defence sources. The approval, granted in a high-level meeting, paves the way for Hindustan Aeronautics Ltd to scale up production of the indigenous aircraft.
This marks the second major order for LCA Mark 1A fighters, following the earlier contract for 83 aircraft valued at around ₹48,000 crore. The new Tejas jets will replace the ageing MiG-21 fleet, which is being phased out by the government in the coming weeks, the report added.
The LCA Mark 1A is equipped with advanced avionics and radars compared with the initial batch of 40 LCAs already supplied to the IAF. The indigenous content in the new aircraft is expected to exceed 65%.
The move aligns with Prime Minister Narendra Modi’s push for self-reliance in defence manufacturing.
HAL has secured a pipeline of projects to build a range of indigenous fighter jets, helicopters, and their engines. In addition, the company is expected to bag contracts for more than 200 LCA Mark 2 aircraft and a similar number of fifth-generation Advanced Medium Combat Aircraft (AMCA).
HAL Share Price Performance
Hindustan Aeronautics share price has fallen 2% in one month and declined 6% in three months, but the defence stock has rallied 33% in six months and has gained 10% on a year-to-date (YTD) basis. HAL share price has jumped 140% in two years, while the PSU defence stock has delivered multibagger returns of 660% in the past five years.
At 9:20 AM, HAL share price was trading 1.70% higher at ₹4,528.54 apiece on the BSE.
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