HAL Refutes Tejas Crash Reports, Terming it a ‘Minor Technical Incident’ as Stock Price Drops Over 3%

Hindustan Aeronautics Limited (HAL) has officially dismissed media reports regarding a Light Combat Aircraft (LCA) Tejas crash, categorising the event as a "minor technical incident on ground." In a formal filing to the BSE and NSE, the company clarified that the aircraft remains intact and that the situation was managed according to established safety protocols. While earlier reports suggested the jet sustained airframe damage after overshooting a runway due to brake failure on February 7, HAL maintains that the occurrence was confined to ground operations. The company is currently working with the Indian Air Force to analyse the matter in depth, emphasising that the Tejas continues to hold one of the strongest safety records among modern fighters.

Despite this clarification, the Defence sector faced significant selling pressure during the February 23 trading session. The Nifty India Defence index retreated to an Intraday low of 8,010, while shares of HAL declined 3.47 per cent. Other industry players like Cyient DLM and Bharat Dynamics also saw their stock prices drop by 2.97 per cent and 2.66 per cent, respectively. This market volatility persists even as the Tejas fleet, which currently consists of 30 jets, remains a cornerstone of India’s air defence and maritime reconnaissance capabilities.

The market reaction stands in contrast to HAL’s robust financial health, as the company reported a strong performance for the third quarter of the 2025-26 fiscal year. Revenue from operations grew by 10.65 per cent to reach Rs 7,698.8 crore, up from Rs 6,957.31 crore in the previous year. Operating efficiency remained high, with EBITDA rising 11.2 per cent to Rs 1,871 crore. This growth translated into a significant 29.64 per cent jump in consolidated profit after Tax, which climbed to Rs 1,866.68 crore, resulting in an earnings per share of Rs 27.69 for the quarter.

To reward its investors, the Board of Directors declared an interim dividend of Rs 35 per equity share, representing a 700 per cent payout on the face value of Rs 5. This move follows a period of strategic financial adjustments, including the receipt of an income tax refund worth Rs 423.02 crore. Additionally, HAL continues to expand its Order Book, recently securing a contract worth Rs 2,312 crore from the Ministry of Defence for eight Dornier 228 aircraft. These planes are intended for the Indian Coast Guard to strengthen maritime security and support the domestic MSME ecosystem.

As a recently designated 'Maharatna' company, HAL maintains a dominant position in the Aerospace sector with a market capitalisation exceeding Rs 2.60 lakh crore and a massive order book of Rs 1,89,300 crore. The President of India holds a 71.64 per cent stake in the firm, while Domestic Institutional Investors (DIIs) have recently increased their holdings to 9.68 per cent. Over the last five years, the stock has delivered massive returns of 680 per cent, reflecting its critical role in indigenous defence programs like the Light Utility Helicopter and the HTT-40 trainer.

Disclaimer: The article is for informational purposes only and not investment advice.