Hindustan Aeronautics (HAL) shares advanced as much as 1% to hit an intraday high of ₹4,937.60 on the National Stock Exchange (NSE) on Wednesday, August 26, following the signing of the final contract with SAFHAL. According to CNBC TV18, the latest agreement is the culmination of four years of work between HAL and Safran, with the companies signing an MoU on July 8, 2022, followed by a workshare agreement on February 15, 2023, and an airframer contract on August 30, 2024. The final contract, signed on August 26, 2026, now brings HAL, Safran Helicopter Engines and SAFHAL together to launch the engine's development and production programme. The collaboration encompasses advanced design methodologies, state-of-the-art manufacturing processes, comprehensive testing, and robust product support, aligning with the highest international aerospace standards.
The Aravalli engine programme has been finalized as a 3,500-4,000 shaft horsepower (shp) engine specifically designed for India's indigenous 13-tonne helicopter platforms. As per Business Standard, the contract covers 'joint design, development, manufacture, supply and lifecycle support' of the engine through the 50:50 joint venture SAFHAL Helicopter Engines. HAL and Safran will jointly develop the engine, while SAFHAL will manufacture it at a facility in Tumakuru, Karnataka. The partnership will provide HAL access to 'core engine technologies' including high-pressure compressor, power turbine, fuel and oil systems, accessory gearbox and external engine systems that will be crucial for developing future generations of indigenous aero-engines. The Aravalli engine will power HAL's upcoming 13-tonne Indian Multi-Role Helicopter (IMRH) and its naval variant, the Deck-Based Multi-Role Helicopter (DBMRH).
The IMRH is being developed by HAL for the Indian Air Force and the Army and is intended to eventually replace the IAF's ageing fleet of Russian-origin Mi-17 helicopters. The DBMRH is being developed for the Indian Navy with folding blades for warship-based operations. According to HAL's website, the preliminary design of the IMRH is nearly complete, and configuration studies for the DBMRH are progressing towards completion. Beyond military applications, the engine programme offers significant potential for future civil market opportunities, including offshore transportation, utility missions, and VVIP transport. Ravi K, Chairman and Managing Director of HAL, commented that this contract marks a significant step forward in India's pursuit of self-reliance in aero-engine technologies, noting that the programme will contribute meaningfully to the development of a robust domestic aerospace industrial ecosystem.
The Aravalli programme represents a new chapter in the India-France strategic relationship and will combine the expertise of both companies to develop propulsion systems for future Indian rotorcraft. According to CNBC TV18, Cédric Goubet, CEO of Safran Helicopter Engines, noted that this is 'the first time Safran Helicopter Engines has taken up such a class of engine as co-development'. The programme will create a strong foundation for powering next-generation Indian helicopter platforms while building greater domestic capability in aerospace propulsion and lifecycle support. The lifecycle-support component is expected to help develop indigenous maintenance, repair and overhaul (MRO) capabilities in India, further strengthening the country's aerospace manufacturing ecosystem. The Aravalli engine is named after the Aravalli mountain range, symbolizing India's aspirations towards achieving greater self-reliance in critical aerospace propulsion technologies.
At around 12:04 PM on August 26, HAL stock was trading at ₹4,910.60 per unit, up by 0.22%. The stock has shown mixed performance with a 2% decline in the past week but gained 7% over the month. On a year-to-date basis, it has jumped more than 11%. While the stock hit a 52-week high of ₹5,149.90 per equity share on August 17, 2026, it touched a year's low of ₹3,479.10 apiece on March 30, 2026. Hindustan Aeronautics Ltd has a total market capitalisation of ₹3.3 lakh crore as of August 26, 2026, according to data on the NSE. The recent contract win is expected to further strengthen the company's position in India's growing defence manufacturing sector. On Wednesday's trading session, HAL shares closed flat at ₹4,890 apiece on BSE and declined 0.7% to settle at ₹4,865.5 on NSE.
