HAL pops 4% on reports of receiving 1st F404-IN20 engine from GE Aerospace

HAL share price rose after Ohio, US-based aerospace company GE Aerospace delivered the first of 99 F404-IN20 engines to Hindustan Aeronautics for Tejas Light Combat Aircraft Mk 1A Fighter Jet

HAL share price: Hindustan Aeronautics Limited (HAL) shares were buzzing in trade on Wednesday, March 26, 2025, as the stock gained as much as 4,30 per cent to hit an intraday high of Rs 4,163 per share.

 

HAL share price rose after reports suggested that Ohio, US-based aerospace company GE Aerospace has delivered the first of 99 F404-IN20 engines to Hindustan Aeronautics for Tejas Light Combat Aircraft Mk 1A Fighter Jet. 

F404-IN20 engines are the highest thrust variant in the F404 family of GE Aerospace. It produces a maximum of 19,000 lbf (85 kN) of thrust with afterburner. It incorporates the latest hot section materials and technologies as well as a FADEC system for reliable power and performance.

 

 

This comes after the Indian Air Force (IAF) Air Chief Marshal AP Singh, in February, had raised concerns over delays in the delivery of Tejas Mk1A fighter jets, with Singh criticising Hindustan Aeronautics Ltd (HAL) at the Aero India show in Bengaluru.

 

Ravi Singh, SVP of retail research at Religare Broking said that the delivery of the first F404-IN20 engine from GE Aerospace to Hindustan Aeronautics Limited (HAL) enhances the company’s credibility in the global defence sector and gives strength to its long term revenue growth. It also marks a significant milestone for Tejas Mk 1A program, strengthening HAL’s production  ALSO READ | Stock Market LIVE Updates: Sensex drops 550 pts to 77,450; Nifty at 23,540. 

 

In the long-term, according to Singh, HAL shares might perform better and give constant positive returns due to the growing defence sector orders and India’s initiative towards ‘Self-Reliance’. 

 

“The stock might also face challenges in coming days due to geopolitical factors and government policies. So investors need to monitor the factors closely and consider buying on dips with proper risk reward,” Singh added.

 

According to reports, Antique Broking, which maintains a ‘Buy’ rating on HAL with a target price of Rs 4,887, highlighted that the successful delivery of the engine helps address concerns regarding engine availability, ensuring HAL can fulfill the 83 aircraft orders placed by the IAF. The brokerage estimates that HAL will deliver 8 to 10 aircraft in FY26/27.

 

Analysts also noted that the consistent delivery of two engines per month from GE Aerospace should help HAL achieve its delivery schedule of 16 aircraft to IAF.

 

Antique Broking reportedly said that this deal could also potentially boost HAL’s earnings estimate for FY26/27.

 

Meanwhile, Morgan Stanley reportedly had maintained an ‘Overweight’ rating with a target price of Rs 4,958, from Rs 5,135, citing healthy revenue and order inflow in Q3FY25. The 9MFY25 order inflow remains strong, driven by orders for Sukhoi engines and aircraft. The firm expects total orders to reach Rs 1,65,000 crore for FY25.   ALSO READ | Bharat Dynamics shares up 4% from day's low on ₹4,362-cr order win from MoD

 

HAL Q3 results

 

Financially, HAL’s consolidated profit rose 14.2 per cent year-on-year (Y-o-Y) to Rs 1,439.8 crore in Q3FY25, from Rs 1,261.4 crore in Q3FY25. Revenue also surged 14.8 per cent Y-o-Y to Rs 6,957.3 crore in Q3FY25, from Rs 6,061.3 crore a year ago.

 

At the operating level, Ebitda climbed 15.9 per cent Y-o-Y to Rs 1,405.7 crore in Q3FY25, from Rs 1,213.4 crore in Q3FY24. Ebitda margin also expanded to 20.2 per cent, from 20 per cent in the same period last year.

 

About HAL 

 

Hindustan Aeronautics Limited, established in 1940, and headquartered in Bangalore, is India's largest aerospace and defence company, as well as one of the oldest and largest globally. 

 

HAL's operations encompass the manufacturing of aircraft, helicopters, and their components, with notable products including the Dhruv advanced light helicopter, the Tejas light combat aircraft, and the Hindustan Ambassador car.   ALSO READ | NSE rejig tomorrow: Zomato, Jio Fin's Nifty inclusion to add $910 million

 

The company is also involved in the design and development of new products and upgrades, as well as the repair and overhaul of aircraft and helicopters. Additionally, HAL manufactures crucial satellite structures. 

 

With facilities located in various Indian cities, including Kanpur, Nasik, Koraput, Korwa, Lucknow, Kasaragod, and Hyderabad, HAL operates under the purview of the Indian Ministry of Defence.

 

At 1:30 PM, the HAL share was trading 3.65 per cent higher at Rs 4,157.80 per share. In comparison, BSE Sensex was trading 0.66 per cent lower at 77,503.06 levels.