HAL share price: PSU defence stock rises over 3% after signing deal with GE Aerospace for Tejas fighter jet engines

Hindustan Aeronautics share price rallied over 3% on Monday after the company announced a deal with General Electric for aircraft engines. The PSU defence stock gained as much as 3.39% to ₹4,784.00 apiece on the BSE.

The state-run Maharatna defence company, Hindustan Aeronautics Ltd (HAL), on Friday announced that it has entered into an agreement with General Electric Company, USA for the supply of 113 units of F404-GE-IN20 engines and support package for execution of 97 LCA Mk1A programme.

“The engine deliveries would be from 2027 to 2032. The Contract for 97 LCA Mk 1A was signed in September 2025,” HAL said in a regulatory filing on November 7.

HAL’s order book at the end of FY25 stood at ₹1.8 lakh crore, providing revenue visibility of 6.2x its TTM revenue. This order book should be further beefed up to ₹2.6 lakh crore on finalization of 97 Tejas Mk-1A; total size of the order could be ₹67,000 crore.

Krishna Doshi, Defence Analyst, Ashika Institutional Equity Research sees this deal as a positive development for teh defence PSU as there will be faster execution and no delays.

“The deal is likely to improve confidence amongst investors with an expectation of timely execution and delivery of the current orderbook which stands at a strong ₹2.5 lakh crore, with expectations of more than ₹1 lakh crore worth of new orders over the next two years. The key thing to watch out for is the timely execution and delivery of the Tejas MK1A orders. The outlook for HAL shares remains positive,” said Doshi.

According to Antique Stock Broking, the agreement with GE will ensure supply chain consistency and timely execution of the additional 97 Tejas Mk-1A, which will help IAF replace the MIG-21 and bolster its depleting fleet.

“Execution of the large order book now remains the key monitorable as any further delay in the delivery of Tejas MK-1A aircraft on account of pending certification can risk our FY26/ 27 earnings estimates. We retain our positive stance on the company given the multi-year double-digit earnings growth potential and robust return ratio profile of +20%,” said Antique Stock Broking.

It believes that HAL shares are attractively valued and thus retains a ‘BUY’ rating with HAL target price of ₹6,360 apiece, valuing it at a PE of 40x 1HFY28E earnings.

HAL Share Price Performance

HAL share price has remained flat in one month, but has gained 7.5% in three months and has risen 15% on a year-to-date (YTD) basis. The PSU defence stock has jumped 132% over the past two years, and has delivered multibagger returns of 1,220% in five years.

At 1:00 PM, HAL share price was trading 3.20% higher at ₹4,775.00 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.