Public sector aerospace giant Hindustan Aeronautics Ltd (HAL) has announced that it is on track to deliver 12 LCA Mk1A fighter jets to the Indian Air Force (IAF) in 2025, marking a critical milestone in India’s push for self-reliance in defence manufacturing. The announcement follows the commencement of engine deliveries from U.S. technology major GE Aerospace.
HAL, which held its earnings call on Friday, stated that the first aircraft is expected to roll out within the next two months. The LCA Mk1A is an upgraded 4.5-generation variant of the indigenous Tejas Light Combat Aircraft, featuring enhanced combat capabilities, survivability, and operational efficiency.
Strong Orderbook, Boost in Production Capacities
HAL revealed that its orderbook stood at an impressive ₹1.89 lakh crore as of April 2025, nearly doubling from ₹94,000 crore a year ago. Key projects in the pipeline include 97 LCA Mk1A jets, 143 Advanced Light Helicopters (ALH) for the IAF, and 10 Dornier aircraft for the Indian Navy. Together, these orders account for ₹1.25 lakh crore.
To meet the growing demand, HAL is expanding its manufacturing capacity with twin production lines for the LCA Mk1A, one each in Bengaluru and Nashik. The Nashik facility in Maharashtra is set to play a pivotal role in scaling up both aircraft and helicopter output.
₹15,000 Crore Capex Plan Over Five Years
Complementing its ambitious production volume targets, HAL invested a capex of ₹14,000–15,000 crore over the next five years. The investment, which is ₹3,000 crore per annum, will be for upgradation of infrastructure and manufacturing scale-up for making timely deliveries to the armed forces.
The company is eyeing a revenue expansion of 8–10% in FY26 due to sound demand, increased production capacity, and strategic partnerships.
HAL Shares Rally on Defence Optimism
HAL’s stock surged 5% on Friday, riding a broader rally in defence stocks. The surge comes in the wake of the successful execution of Operation Sindoor and heightened geopolitical tensions following the recent terror attack in Pahalgam.
Market analysts believe that the Indian government may further increase its defence budget, which could unlock even more orders for indigenous defence firms like HAL. With Make in India gaining momentum in the aerospace and defence sector, HAL stands at the forefront of India’s military-industrial expansion.
