HAL Share Price Gains 1.47% to Rs. 4,518 on Fresh Rs. 62,000 Crore Defence Deal

Overview

• The Cabinet’s approval for 97 LCA Tejas Mark 1A aircraft significantly boosts HAL’s order book to over Rs. 1.89 lakh crore, ensuring long-term revenue visibility.

• Despite a YoY dip in net profit due to higher taxes, HAL posted double-digit revenue growth, margin expansion to 26.7%, and a final dividend of Rs. 15 per share.

• As 60% of analysts rate HAL a ‘Buy’, the stock remains attractive for long-term investors, backed by India’s indigenous defence push.

Hindustan Aeronautics Limited (HAL) shares have moved higher, outperforming a largely muted market, after the Union Cabinet cleared a major defence deal worth Rs. 62,000 crore. HAL share price today is trading at Rs. 4,518, up 1.47% at press time. The trading volume crossed 1.86 million shares. The PSU defence major’s rally came on the back of optimism around fresh orders for the indigenous Tejas fighter jet programme.

Government Clears Big Tejas Jet Deal

The Cabinet, chaired by Prime Minister Narendra Modi, has approved the acquisition of 97 LCA Tejas Mark 1A fighter aircraft from HAL. This is the second major order for the upgraded Tejas variant, following an earlier contract for 83 aircraft worth Rs. 48,000 crore.

The Mark 1A incorporates significant upgrades over the original Mk1, including advanced avionics, modern radar systems, and improved combat readiness. With the Indian Air Force (IAF) preparing to phase out its aging MiG-21 fleet by September 2025, the Tejas programme is central to India’s indigenous defence push.

For HAL stock, the deal strengthens its already strong order book, which stood at over Rs. 1.89 lakh crore as of June 30, 2025. Hence, covering key projects like the LCH “Prachand” and additional Tejas aircraft.

Stock Performance and Market Data

HAL shares opened the session at Rs. 4,600 and touched an intraday high of Rs. 4,605, before easing slightly. The stock’s 52-week range remains between Rs. 3,046.05 and Rs. 5,165, with an all-time high of Rs. 5,674.75. At current levels, the stock commands a market capitalization of over Rs. 3.02 lakh crore.

HAL share price chart on TradingView shows gains of 1.02% at 12.17 PM:

Key technical levels suggest immediate support at Rs. 4,500, with resistance expected near Rs. 4,585 and Rs. 4,605 for HAL shares. Analysts also highlight a strong support zone around Rs. 4,415-Rs. 4,462, in case of any profit booking. The stock’s beta of 1.31 indicates higher volatility compared to the broader market, making it attractive for active traders. 

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Financial Performance

For the April-June quarter of FY26, Hindustan Aeronautics Limited reported a net profit of Rs. 1,377.15 crore, down 4.4% year-on-year due to higher tax outgo. However, operational performance showed strength. Revenue from operations rose 11% YoY to Rs. 4,819.14 crore, while EBITDA surged nearly 30% YoY to Rs. 1,284 crore. Margins expanded sharply to 26.7%, compared to 22.8% in the year-ago period, reflecting efficiency gains.

The board has also recommended a final dividend of Rs. 15 per share (300%) for FY25. The record date is fixed for August 21, 2025. This dividend yield of 0.89% adds to HAL’s attractiveness for long-term investors seeking steady payouts from a defence sector PSU.

Analyst Sentiments

Brokerages remain optimistic on HAL, given its strong order pipeline and role in India’s indigenous defence ecosystem. As per analyst consensus on Moneycontrol, 60% rate the stock a ‘Buy’, 13% ‘Hold’, while only 14% assign ‘Underperform’ or ‘Sell’ ratings. Anand Rathi, in a recent report, highlighted HAL’s leadership in defence manufacturing and policy tailwinds as key long-term growth drivers.

Market Outlook

HAL’s latest fighter jet order approval signals sustained revenue visibility for the coming decade and underscores India’s strategic focus on indigenous defence capabilities. Near-term valuations appear positive with a TTM PE of 36.36 compared to the sector average of 46.94. HAL shares’ long-term growth prospects also remain intact on strong fundamentals. Investors should track execution timelines, future order inflows, and margin sustainability as the company navigates its next growth phase.

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FAQs

1. What is HAL shares target price?

Analysts’ target prices for HAL vary, but most brokerages expect the stock to trade in the range of Rs. 4,800-Rs. 5,200 in the near term, driven by strong order inflows like the Rs. 62,000 crore Tejas deal. Long-term targets could be higher as execution improves.

2. Is HAL stock a good buy?

Yes, many analysts consider HAL a good buy due to its strong order pipeline of nearly Rs. 1.9 lakh crore, consistent government support, and leadership in India’s defence manufacturing. While short-term volatility exists, HAL offers robust long-term growth prospects.

3. What is the future of HAL stock?

HAL’s future looks promising, given India’s push for indigenous defence capabilities and HAL’s role in aircraft development, helicopters, and advanced combat systems. The Tejas programme, LCH “Prachand,” and upcoming projects ensure visibility for revenue growth well into the next decade.

4. Are HAL shares overvalued?

HAL currently trades at a TTM PE of 36.36, slightly below the sector PE of 46.94. While valuations appear elevated versus historical averages, they are supported by strong order visibility, improving margins, and sector tailwinds, making it not excessively overvalued.

5. Will HAL share price go up further?

HAL share price could rise further as execution on new orders like the Tejas jets progresses and margins continue to improve. Defence sector policy tailwinds and steady dividend payouts make it attractive for long-term investors, though short-term corrections are possible.