Updated May 11th 2025, 17:39 IST
Hindustan Aeronautics Limited (HAL), India’s leading defence public sector unit (PSU), is drawing increased attention from investors amid rising geopolitical tensions and robust financial performance.
With a provisional revenue of Rs 30,400 crores in FY 2024-25, HAL has managed to match last year’s revenue despite facing supply chain challenges.
“This achievement was despite the shortfall in deliveries of LCA and ALH,” said Dr. D.K. Sunil, CMD, HAL. “The LCA deliveries were delayed due to engine unavailability, while the ALH schedule was impacted by the January 2025 accident and subsequent grounding.
However, deliveries of other products and services were accelerated, helping us maintain our top line.”
Beyond the numbers, HAL's order book has seen a massive jump—from Rs 94,129 crores at the beginning of the year to Rs 1,84,000 crores by year-end. This includes Rs 1,02,000 crores in new manufacturing contracts and Rs 17,500 crores in repair and overhaul (ROH) work. A standout deal was the Rs 62,777 crore order from the Ministry of Defence (MoD) for 156 LCH ‘Prachand’ helicopters—HAL’s single biggest contract ever.
Additionally, FY25 saw HAL becoming the first defence PSU to receive ‘Maharatna’ status. The company also secured contracts for 12 more Su-30 MKI aircraft, mid-life upgrades for 40 Do-228 aircraft, and avionics enhancements for an IL-78 aircraft.
With new production lines for LCA and HTT-40 and expansion at its Koraput engine facility, HAL is positioning itself for higher output in FY 2025-26.
From a market perspective, defence stocks like HAL are gaining traction as tensions between India and Pakistan flare up. “On technical charts, HAL has formed a base around the Rs 4,400 level and is showing strong momentum,” said Sugandha Sachdeva, Founder of SS WealthStreet. “The stock is comfortably trading above key moving averages and Bollinger mid-band support of Rs 4,337, indicating a bullish trend.”
According to Sachdeva, HAL could see its stock price rise towards Rs 5,000 in the medium term, with Rs 4,380 as the near-term support. If this support level breaks, the stock may test Rs 4,100. However, strong fundamentals and a robust defence pipeline make the downside relatively limited.
Investors are also eyeing HAL’s Q4 FY25 earnings report, due on May 30, 2025, which is expected to offer further insight into the company’s growth trajectory and profitability.
Hindustan Aeronautics Limited (HAL) is currently trading at Rs 4,500 levels. The stock has a 52-week high of Rs 5,675 and a 52-week low of Rs 3,045.95. With a market capitalization of Rs 3,01,008.94 crore on the BSE 100 index, HAL is among the major players in India’s defence sector.
Over the last month, the stock has gained 11.66%, while its 1-year return stands at 17.02%. Impressively, over the past 3 years, HAL has delivered a return of 474.84%, and over 5 years, a massive 1,695.48%, showing strong long-term growth for investors.
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Published May 10th 2025, 19:07 IST