Hindustan Aeronautics gets wings to fly higher as analysts stay bullish

The Tejas Mk-1A is an Rs 48,000 crore order accounting for 37 per cent of HAL's order book of Rs 1.3 trillion

News reports that GE Aerospace has delivered the first of 99 F404-IN20 engines ordered by Hindustan Aeronautics (HAL) for the Tejas Mk-1A has revived interest in the HAL stock.

 

This addresses serious concerns about a supply bottleneck. HAL has said it will receive 12 engines this year.

 

While HAL could make 24 aircraft, given the engine supply, it is more likely to be a gradual ramp up from 10 aircraft deliveries to the Indian Air Force (IAF) in the financial year 2026 (FY26), to 24 aircraft per annum by FY30. Consistent supply of F-404 engines for Tejas Mk-1A is a