Hindustan Aeronautics share price rises 3% on heavy volume; here's why

Reports suggest that in its bid to meet the growing requirements of indigenous helicopter platforms, HAL plans to establish a second production line for Shakti engines at its Koraput facility.

Hindustan Aeronautics (HAL) stock price movement

 

Hindustan Aeronautics (HAL) moved higher by 3.5 per cent to ₹4,833.45 on the BSE in Tuesday’s intraday deals amid heavy volume on reports that the company will establish a second production line for Shakti engines at its Koraput facility with an investment of ₹218 crore.

 

The stock price of the public sector undertaking (PSU) aerospace & defence company hit a 52-week high of ₹5,149.90 on August 17, 2026.

 

At 02:53 PM, HAL quoted 3 per cent higher at ₹4,826.50, as compared to a 0.72 per cent rise in the BSE Sensex. The average trading volume at the counter jumped over four-fold, with a combined 1.08 million shares changing hands on the NSE and BSE.

 

 

Why did HAL stock outperform market?

 

HAL will establish a second production line for Shakti engines at its Koraput facility with an investment of ₹218 crore, aimed at meeting the growing requirements of indigenous helicopter platforms including Dhruv and Prachand. The development coincides with HAL’s delivery of its 2,000th aero-engine, marking nearly six decades of engine manufacturing at Koraput.

 

The second Shakti engines line is more important for HAL’s near-to-medium-term helicopter ramp-up, given its existing order backlog of 25 Dhruv Advanced Light Helicopters (ALH), 12 Light Utility Helicopters (LUH) and 156 Prachand Light Combat helicopters (LCH), apart from the 10 Dhruv NG helicopters ordered by Pawan Hans, ICICI Securities said in a note.

 

The ₹218 crore investment should improve engine availability and support timely helicopter deliveries as HAL scales up production of these helicopters. Moreover, additional 110 LUH and 95 LCH helicopters have been planned, where the contracts are yet to be placed with HAL. The company is also increasing manufacturing capacity across LCA, HTT-40 and LCH, with ~₹12,000 crore planned investment in manufacturing infrastructure by 2030, providing a broader capacity-led growth opportunity, the brokerage firm said.

 

Meanwhile, HAL’s CMD Ravi Kota in a media interview, post completing the delivery of the Tejas Mk1 trainer aircraft contract on September 18, 2026, expressed confidence in delivering the Tejas Mk1A aircraft this year. CMD has been closely associated with India’s Light Combat Aircraft (LCA) program historically. Tejas Mk1A is 43 per cent of HAL’s order book and a key re-rating trigger for the stock. The company received 10 engines for the aircraft from GE, analysts at Jefferies said in the company update.

 

“Hence, there is confidence on delivering 10 aircraft this year, which compares favourably to our assumption of 5 aircraft. HAL’s stock has de-rated given delays on Tejas Mk1A since CY24 and raised investor concerns on the company’s execution ability,” the brokerage firm said. Analysts believe that the Indian Air Force accepting delivery of even one aircraft will give confidence in the company’s abilities and be a key upside driver.  Analysts at Jefferies have a ‘Buy’ rating on HAL with a target price of ₹6,800 per share. Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.