Rs 62,000 Crore Mega-Order: Defence aircraft manufacturer receives Ministry of Defence approval for procurement of 97 LCA Mk-1A for Indian Air Force
DSIJ Intelligence-1 / 21 Aug 2025/ Categories: Multibaggers, Trending
The stock gave multibagger returns of 300 per cent in 3 years and a whopping 640 per cent in 5 years.
The Cabinet Committee on Security (CCS) has approved a significant proposal for the procurement of 97 Light Combat Aircraft (LCA) Mk-1A along with associated equipment for the Indian Air Force from Hindustan Aeronautics Ltd (HAL). This mega-order, valued at approximately Rs 62,000 Crore, was communicated by the Ministry of Defence to HAL, a leading Indian defence company specialising in aircraft and helicopter design, manufacturing, repair, and overhaul. The approval falls under Regulation 30 of the SEBI (LODR) Regulations, 2015, and was reported by HAL to the stock exchanges (BSE Scrip Code: 541154, NSE Symbol: HAL).
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About the Company
Hindustan Aeronautics Ltd (HAL), a leading Indian defence company, excels in the design, manufacturing, repair and overhaul of aircraft and helicopters. Organised into three key segments—Manufacturing, Services and other activities—HAL boasts 20 production and overhaul divisions and nine R&D centres across India, prioritising indigenous programs like the HTT-40 Basic Trainer Aircraft and Light Utility Helicopter (LUH). Notably, HAL achieved the prestigious 'Maharatna' status on October 14, 2024, becoming the first Defence Public Sector Undertaking (PSU) to earn this distinction, signifying enhanced operational and financial autonomy.
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According to Quarterly Results, the company reported net sales of Rs 4,819 crore and net profit of Rs 1,384 crore in Q1FY26. In its annual results, the net sales increased by 2 per cent to Rs 30,981 crore and net profit increased by 10 per cent to Rs 8,364 crore in FY25 compared to FY24.
The President of India’s portfolio owns the majority of the stake, i.e., 71.64 per cent as of June 2025 and DIIs increased their stake to 8.67 per cent in June 2025 compared to March 2025. The company has a market cap of over Rs 3 lakh crore and has maintained a healthy dividend payout of 31.4 per cent with a strong order book of Rs 1,89,300 crore. The stock gave multibagger returns of 300 per cent in 3 years and a whopping 640 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.