Hindustan Aeronautics receives broker upgrade following strong quarterly performance and optimistic delivery targets for Tejas fighter jets, signalling a potential leap in India’s defence manufacturing sector.
Hindustan Aeronautics has drawn a fresh round of broker optimism after a strong June quarter and improving visibility on its Tejas fighter programme. According to The Hindu BusinessLine, the stock was rated “Buy” with a target price of ₹5,795, up from ₹5,423, as the broker said better availability of GE F-404 engines should help the company lift deliveries of the LCA Mk1A aircraft.
The company’s latest quarter showed solid momentum. Revenue rose about 14.4 per cent from a year earlier, while EBITDA margin expanded to 27.7 per cent, helped by lower other expenses, BusinessLine reported. The broker said HAL remains well placed across India’s defence manufacturing ecosystem, backed by an order pipeline of roughly ₹90,000 crore over the next two years spanning helicopters, fighter upgrades, transport aircraft and engine-related work.
Other recent reports suggest HAL is pushing hard to turn that order book into output. Sahi.com reported that the company is accelerating production to deliver 24 Tejas Mk1A fighter jets by December 2026, as it moves from development to higher-volume manufacturing. The same outlet said HAL is also working towards starting Tejas Mk2 deliveries around August or September 2026, while aiming for EBITDA margins of 30 to 31 per cent in fiscal 2026-27.
Execution, however, remains the key test. HAL has previously revised some delivery targets because of supply delays, including engine availability and weapons trials, according to Sahi.com. Even so, the company is planning about ₹12,000 crore of cumulative investment by 2030 for capacity expansion, aero-engine infrastructure and newer platforms, a strategy that could support higher production and deeper localisation if suppliers keep pace.
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