HAL: Aerospace and Defence in Motion

A few years ago, HAL was the kind of company people respected, perhaps even admired, but seldom got excited about.

Somewhere along that trajectory, HAL shook off its rust. And today, it’s a whole different ballgame.

The transformation didn’t happen in a vacuum. So, what happened?

Geopolitical tensions began rising, India’s borders turned hotter, and the government doubled down on its Atmanirbhar Bharat mission.

The numbers show how HAL’s order book has grown - ₹1.84 lakh crore in FY25, and on track to soar to ₹2.5 lakh crore in FY26.

Revenue hit ₹30,381 crore in FY24, with net profit crossing ₹7,595 crore.

The stock, once sluggish, has exploded over 200% in just two years, catapulting HAL into the elite club of India’s top 10 most valuable PSUs, with a market cap north of ₹3 lakh crore.

What’s fueling this rise is a blend of manufacturing contracts, services expertise, and landmark deals. In the financial year 2024-25 alone, HAL secured new manufacturing contracts worth ₹1.02 lakh crore (61% of its order book) and Repair & Overhaul (ROH) contracts worth ₹17,500 crore (10%).

The crown jewel, though, was the massive ₹62,777 crore deal with the Ministry of Defence for 156 Light Combat Helicopters (LCH) Prachand - nearly 29% of HAL’s total order book and the largest defence contract India has ever seen.

Pair that with recent contracts - the ₹6,542 crore Tejas Mk1a deal with the Indian Air Force and the ₹13,500 crore Sukhoi fighter jets order from the Indian government, and it’s clear HAL has become a key player in India’s defence push.

International partnerships are further adding to HAL’s credibility.

Collaborations with Safran in France and GE Aerospace in the U.S. for next-gen engine co-development signal HAL’s ambition to play on the global stage.

But HAL’s ambitions stretch far beyond rolling jets off production lines, as the company is already preparing for the future.

It’s betting its future on cutting-edge warfare tech - fifth-generation stealth fighters under the Advanced Medium Combat Aircraft program (AMCA) banner, and unmanned systems like the CATS Warrior drone, designed for combat and surveillance.

Exports are another big piece of the puzzle.

The company is looking to supply equipment to friendly countries, hoping to stake a claim in the fiercely competitive arms export market.

That said, the export game is never straightforward and geopolitical swings can open or shut doors overnight, making it a risky proposition.

What’s remarkable is how sharply HAL has pivoted from where it once stood.

In many ways, HAL’s rise mirrors India’s broader defence ambitions: more self-reliant, more confident, and eager to take its place on the world stage.