Strong growth, margin expansion ahead for Hindustan Aeronautics

The Ministry of Defence (MoD) has signed a contract with Hindustan Aeronautics Ltd (HAL) for the procurement of 97 LCA (Light Combat Aircraft) Mk1A aircraft worth ₹62,400 crore (excluding taxes).

- DEVANGSHU DATTA

As part of the contract, 68 fighters and 29 twin seaters and associated equipment will be procured. The delivery will start in the financial year 2028 (FY28) and would be completed in over six years.

The acquisition was approved by the Cabinet Committee on Security in August 2025. The aircraft will have indigenous content of over 64 per cent, and it is over and above a previous contract for 83 LCA Mk-1A aircraft signed in January 2021. Furthermore, advanced, indigenously developed systems such as the UTTAM Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach, and control surface actuators will also be integrated, bolstering the indigenisation policy.

The project will be supported by a vendor base of close to 105 Indian firms directly engaged in the manufacturing of components and an additional 67 key components are being indigenised.