HAL shares rise 3% on inking agreement with General Electric; check details

Hindustan Aeronautics shares rose 3 per cent after it signed an agreement with the American engine manufacturer General Electric Company

Shares of Hindustan Aeronautics Ltd. rose over 3 per cent on Monday after it signed an agreement with the American engine manufacturer General Electric Company for engines and a support package for the 97 Light Combat Aircraft (LCA) Mk 1A programme. 

 

The Aerospace & Defence company's stock rose as much as 3.18 per cent during the day to ₹4,776.8 per share, the biggest intraday rise since September 12 this year. The stock pared gains to trade 3 per cent higher at ₹4,773 apiece, compared to a 0.54 per cent advance in Nifty 50 as of 11:16 AM. 

 

Shares of the company rose for the second straight session and currently trade at 1.8 times the average 30-day trading volume, according to Bloomberg. The counter has risen 15 per cent this year, compared to an 8 per cent advance in the benchmark Nifty 50. HAL has a total market capitalisation of ₹3.18 trillion. 

HAL signs new contract with General Electric 

Hindustan Aeronautics has entered into an agreement with General Electric Company, USA, for the supply of 113 F404-GE-IN20 engines and a support package for the execution of the 97 Light Combat Aircraft (LCA) Mk 1A programme, according to an exchange filing. 

 

The agreement was signed on November 7, 2025, and engine deliveries are scheduled between 2027 and 2032. HAL had signed the contract for 97 LCA Mk 1A aircraft with the Ministry of Defence in September 2025, the statement added.  

HAL missed the February 2024 deadline to begin deliveries due to delays in the arrival of F404 engines under a previous agreement with GE Aerospace. In September, HAL received a follow-on order for a second tranche comprising 97 Mk1A aircraft -- including 68 single-seat fighters and 29 twin-seat trainers -- at a cost exceeding ₹62,370 crore. Deliveries under this contract are expected to commence in 2027-28 and conclude over six years.   ALSO READ | Q2 Results Today

HAL Q1 results recap

HAL’s revenue rose 10.8 per cent year-on-year (Y-o-Y) to ₹4,819 crore, indicating steady execution despite a modest revenue miss. Net profit declined 4.11 per cent Y-o-Y to ₹1,377 crore in Q1FY26, compared to ₹1,436 crore in the same quarter last year (2024-25/FY25), but still came in ahead of expectations. 

 

Operationally, HAL delivered a standout performance. Earnings before interest, tax, depreciation, and amortisation (Ebitda) surged 29.2 per cent Y-o-Y to ₹1,284.3 crore, while margins expanded sharply to 26.7 per cent from 22.86 per cent in Q1FY25.