HAL Flies High on Order Inflows, GE Engine Delivery

Hindustan Aeronautics Ltd (HAL) stock has been in focus over the past few days even though the company clocked muted FY25 revenue of ₹30,400 crore, flat year-on-year, according to its provisional results.

- Ashish Agrawal

The stock got a boost when the company received its first F404 engine from GE after a delay of a year-and-a-half and won an order worth ₹63,000 crore for 156 Prachand light combat helicopters (LCH) towards the end of March. The order took its FY25 inflow to ₹1.2 trillion, more than double the firm's initial guidance of ₹47,000 crore and the FY24 figure of ₹50,000 crore.

The F404 engine is to be used for Tejas Mk-IA jet. HAL received a ₹48,000-crore order for 83 of these in FY21 but it was held up because of the engine delay. GE aims to deliver 11 more engines in 2025 and 20 engines in 2026, said a UBS Global Research report. HAL has the infrastructure to supply 16 Tejas Mk-IA a year, which implies incremental revenue potential of ₹9,200 crore.