Public sector defence manufacturer Hindustan Aeronautics Ltd (HAL) on Thursday said that the Centre has approved the acquisition of 97 LCA Mk-1A fighter jets worth ₹62,000 crore.
“We would like to inform that, as communicated by the Ministry of Defence, the Cabinet Committee on Security (CCS) on August 19, 2025, approved the proposal for procurement of 97 Light Combat Aircraft Mk-1A along with associated equipment by the Ministry of Defence, for the Indian Air Force from the company,” HAL said in an exchange filing on the NSE.
HAL’s shares gained 0.82 per cent to touch ₹4,505 as of 11 a.m. Earlier in the day, at 9:50 a.m., the stock had hit an intra-day high of ₹4,522. The scrip has risen 0.19 per cent over the past five days and is up 8.09 per cent year-to-date.
The deal is seen as a major milestone for the jet manufacturer, which has been advancing the indigenous Tejas programme to phase out the Air Force’s ageing fleet of Soviet-era MiG-21 jets.
The LCA Mk-1A is an upgraded version of the Tejas, with enhanced combat capabilities. The latest defence contract marks the second major order for the aircraft, following HAL’s contract win in February 2021.
Deliveries are expected to begin this year, with six jets scheduled for FY26, after earlier engine supply challenges were resolved.
In July, HAL shares had seen a sharp rally after the Defence Acquisition Council (DAC) cleared 10 major procurement deals worth ₹1.05 lakh crore, all under the Buy (Indian–IDDM) category.
Even though HAL’s net profit fell 3.7 per cent year-on-year to ₹1,383.8 crore, its revenue from operations rose 10.8 per cent to ₹4,819 crore in Q1 FY26. EBITDA grew nearly 30 per cent to ₹1,284 crore, with margins rising to 26.7 per cent from 22.8 per cent a year earlier — contrary to expectations of a decline.
—IANS