HAL shares gained 2% to ₹4,889 on Monday, reaching the day's low on the BSE after the company handed over three indigenously developed platforms to the Indian Air Force and Pawan Hans. The stock opened at ₹4,850 and reached an intraday high of ₹4,888.90 on the NSE, outperforming the Nifty 50 which was nearly flat with a 0.1% gain. According to latest reports, the stock has been under pressure over the past month, losing around 2.7%, but remains up 10.6% so far in 2026, significantly outperforming the Nifty Next 50 which has gained 3.5% since the beginning of this calendar year. HAL's market capitalisation stood at about ₹3,25,359.04 crore as of the latest trading session.
Defence Minister Rajnath Singh praised the handover ceremony as marking three significant achievements, with the Dhruv-NG helicopter handed over after receiving Type Certification from the DGCA. The ceremony saw the final batch of LCA Final Operational Clearance (FOC) Trainer aircraft delivered to the IAF, completing the twin-seat deliveries under the FOC contract, while the first HTT-40 Basic Trainer aircraft was delivered to the IAF, marking the beginning of deliveries under the 70-aircraft contract with the IAF. Singh described the HTT-40 development as a step towards ending India's dependence on foreign countries and noted the aircraft's capabilities could create opportunities for exports. The four Dhruv-NG helicopters were also handed over to Pawan Hans Limited, with the Dhruv-NG being the next-generation civil version of HAL's Advanced Light Helicopter for offshore and passenger operations.
Citi maintained its 'Buy' rating on HAL with a target price of ₹6,175 per share, implying an upside of nearly 29% from Friday's closing price of ₹4,800.30. Goldman Sachs also retained its 'Buy' call with a target of ₹5,870, indicating potential upside of about 22%. CLSA has maintained its 'Outperform' rating with a target price of ₹5,481, indicating an upside of about 14%. The positive analyst sentiment reflects improving execution across fighter aircraft, trainers and helicopters as supply constraints ease and deliveries gather pace. The brokerages have pointed to improving delivery visibility as engine supplies and execution across HAL's programmes show signs of improvement.
Citi highlighted that HAL handed over the final two LCA Tejas FOC twin-seat trainers and three HTT-40 basic trainers to the Indian Air Force, as well as four Dhruv Next Generation helicopters to Pawan Hans on September 18. According to latest reports, HAL received 10 GE F404 engines for the Tejas Mk-1A programme and aims to deliver 10 aircraft by March. Goldman Sachs noted that GE has delivered another three F404 engines, supporting production of the LCA Mk-1A programme. The latest handovers align with the government's push towards indigenous aerospace and defence manufacturing, with the focus now shifting towards converting HAL's large order backlog into revenues as supply constraints gradually ease.
As reported by The Economic Times, HAL announced that these initiatives are expected to support its long-term growth while strengthening its role in India's aerospace and defence ecosystem and improving its competitiveness in global markets. The company last month signed a long-term agreement with Safran Aircraft Engines for the production and supply of turbine ring forgings in superalloys for the 'CFM LEAP' engine programme. The improvement in deliveries is aligned with the government's push towards indigenous aerospace and defence manufacturing, with the stock's near-term outlook remaining closely tied to the pace at which improving F404 engine supplies and completion of testing translate into actual LCA Mk-1A deliveries.
