Attention to HAL Share Price in the Hail of Straws News of Large Engine Deal
Thursday is likely to be a trading session to remember in regard to the performance of Hindustan Aeronautics Ltd (HAL). This follows after the Indian government was reported to have moved a step closer to striking a major deal valued at around 1 billion dollars with an American firm, General Electric (GE). This is a sale of 113 more GE-404 engines to provide jet power to India in its indigenous fighter jet program – the Light Combat Aircraft (LCA).
HAL previously prequalified and already signed an outsourced deal of 99 engines to be used in the first 83 Tejas Mark 1A jets. The additional 113 engines will serve 97 planes that are already a go-ahead to go into production.
In case it transpires, the deal will ensure that the firm has a total of 212 engines in place, which will lower the risk associated with delays of the project. Investors and defence segment observers now have their eyes on HAL shares, especially when such large deals can affect the stock movement in the short and long term.
Existing Engine Deal For HAL’s LCA Tejas Mk1A
Already, the company (Hindustan Aeronautics Ltd (HAL)) has an agreement with General Electric (GE) to purchase 99 GE-404 engines. Such engines are significant as they are to equip the first fleet of 83 Light Combat Aircraft (LCA) Tejas Mark 1A attack planes.
The Indian Air Force (IAF) has placed orders with Indian firms to reinforce its inventory of modern fighter planes made in India. This transaction is a major stride in the country’s plans to develop its own state-of-the-art fighter jets. The GE engines will ensure that the jets are delivered on time, and the Air Force can always stay on track with the ensuing challenges.
New Engine Order For Future Aircraft By HAL
- New deal for 113 GE-404 engines to support 97 LCAs under a ₹62,000 crore procurement plan.
- Total engines (existing + new): 212 GE-404 engines.
- Deal ensures continuous engine supply, reducing risk of delays.
- Negotiations nearly complete; signing expected by September 2025.
LCA Delivery Timeline: HAL is expected to deliver:
-
- The first 83 LCAs by FY2030.
- The additional 97 LCAs by FY2034.
GE is expected to supply approximately 2 engines per month to meet production targets.
Share Price Performance HAL
The share price of HAL has experienced both its rise and fall in the recent past. The price decreased by 4% over the last 1 month. But in the past 3 months, it fell by 12%. On a longer time frame, however, the shares have performed well. In this half a year, the value of HAL shares increased by 35 percent. This year, they are 5% up so far (year to date). In the last 2 years, the shares have gained significantly, increasing by 124%. What is more remarkable is the fact that within the past 5 years, the company has also raised its share price by 645%, making it a historically high-performing company.
Why Investors Should Watch HAL Now
Investors should not neglect to monitor HAL since it is at a critical juncture. As the government approaches a billion dollar purchase of 113 more GE-404 engines, the role of HAL in India fighter jet campaign is increasing. This agreement will provide the engine supply security and help cut down delays in projects increasing faith in the future of HAL. Although the short-term movement of the share price is somewhat negative, the company has been performing well over long-term prospects with overwhelming values on 2 and 5 years. Big defence contracts such as this have the tendency to influence stock prices in a positive manner. Investors are advised to monitor the stock of HAL as it has deals and deliveries coming which might propel the prices up.
(With Inputs)
Also Read: Mukesh Ambani To Address 44 Lakh Shareholders As Reliance Eyes Strategic Shifts In Its AGM
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
