Is Tejas crash a setback for HAL?

Hindustan Aeronautics Ltd’s stock slipped by about 7% intraday on Monday on the NSE after the tragic crash of a light combat aircraft Tejas Mk I at the Dubai airshow on Friday. The state-run enterprise has to deliver 180 Tejas aircraft worth about ₹1.1 trillion, which is over 40% of HAL's estimated order book of ₹2.7 trillion at as of September quarter (Q2FY26).

- Ashish Agarwal [e-mail]

While the crash could impact investor sentiment negatively in the near future, the delivery schedule of the fighter aircraft is expected to remain unaffected.

“We do not think Tejas Mk 1 aircraft will be grounded as the incident did not occur in mission mode and instead took place at an air show (unlike the grounding of HAL’s advanced light helicopter due to frequent crashes in missions),” analysts at Elara Capital said in a 23 November report. Yet, the crash may delay exports, the analysts said.

HAL’s Tejas contract, signed in February 2021, had been held up due to a delay in the supply of F-404 engines from General Electric Co. With engine supply having started in April, HAL plans to deliver up to six aircraft in FY26 and accelerate deliveries further from FY27.