HAL signs ₹62,370 crore Tejas Mk-1A deal; CLSA sees strong order pipeline
Published on 25/09/2025 02:56 PM
HAL signs ₹62,370 crore Tejas Mk-1A deal; CLSA sees strong order pipelineGovernment sources earlier told CNBC-TV18 that the Ministry of Defence is set to formally sign a contract this afternoon with HAL for 97 Tejas Mark-1A fighter jets, in a deal likely valued at around ₹67,000 crore.By Parikshit Luthra | Meghna Sen September 25, 2025, 2:56:00 PM IST (Updated)2 Min ReadShares of Hindustan Aeronautics Ltd. (HAL) are trading 2% higher on Thursday, September 25, rebounding after three consecutive sessions of losses.
The Ministry of Defence has signed a contract this afternoon with HAL for 97 Tejas Mark-1A fighter jets, in a deal likely valued at around ₹67,000 crore.
The acquisition proposal had been approved by the government in August, and the commercial contract is now set to be inked.
Earlier, in February 2021, the Ministry of Defence had signed a ₹47,000-crore contract for 83 Tejas fighters.
Meanwhile, global brokerage CLSA maintains an 'Outperform' rating on HAL, with a price target of ₹5,436.
The brokerage mentioned in its note that HAL reached a major milestone with the first flight of the 13th LCA Mk 1A aircraft this week, exceeding its target of 12 deliveries in FY26, alleviating concerns about potential delays.
CLSA also said that GE has committed to delivering 12 engines in 2025 and 20 in 2026, which is crucial for the final delivery of the aircraft.
The start of deliveries for the first two fully armed Mk 1As is considered a key factor for HAL securing its repeat order worth ₹67,000 crore ($7.8 billion), potentially adding 35% to its existing $22 billion backlog. The company's decadal pipeline remains robust at $54 billion.
The brokerage sees the large fighter aircraft order in 2025, along with visibility on GE engine deals, as major catalysts for HAL.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.First Published: Sept 25, 2025 11:02 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsHALHindustan AeronauticsHindustan Aeronautics Ltd (HAL)share market today