Hindustan Aeronautics Ltd (HAL) is India’s largest aerospace and defence PSU. With over 80 years of manufacturing experience, it operates across fighter jets, helicopters, engines, avionics, and MRO services.
Recently elevated to Maharatna status, HAL now enjoys greater financial and operational autonomy. Its order book has nearly doubled in just one year—placing it at the centre of India’s push for indigenous defence manufacturing.
The latest milestone: a record ₹62,700 crore contract to supply 156 Light Combat Helicopters (LCH) to the Indian Army and Air Force. This is the largest single contract in HAL’s history.
By the numbers:
- HAL reported ₹30,400 crore in revenue for FY24 (flat YoY),
- Net profit stood at ₹8,651 crore,
- The order book surged to ₹1.84 lakh crore (up from ₹94,129 crore),
- It holds ₹3,000 crore in net cash with no debt on the books.
Order book & pipeline: HAL has secured several high-value contracts across platforms. In addition to the LCH deal, it bagged ₹26,000 crore in aero engine contracts, ₹17,500 crore in repair and overhaul (ROH) orders, and ₹5,900 crore from GE Aerospace to supply engines for Tejas Mk1A.
Deliveries for the LCH order are set to begin in year three and will span five years, offering long-term revenue visibility. To meet growing demand, HAL is expanding production capacity for Tejas fighter jets, HTT-40 trainers, and aero engines at its Koraput facility.
Financial performance: FY24 revenue remained flat due to ALH fleet grounding and global supply disruptions. Despite this, HAL maintained ~27% net margins and stayed debt-free. Over the past five years, net profit has compounded at ~25% CAGR. With execution set to accelerate, the company expects 10–15% annual earnings growth ahead.
Diversification & global strategy: HAL’s scope extends well beyond fighter jets. It supplies cryogenic engines to ISRO, radar and EW systems to DRDO, and avionics in collaboration with Bharat Electronics. On the global front, it exports to over a dozen countries and is establishing MRO and logistics hubs in Indonesia, Vietnam, and Sri Lanka to support Soviet-origin and HAL-built platforms.
It also partners with major global OEMs including Boeing, Airbus, Safran, GE, and Honeywell—embedding itself in both military and civil aviation supply chains.
Risk factors: Execution delays (as seen in the Tejas engine program), dependency on global suppliers like GE and Safran, and policy or budget-related deferrals remain key risks. HAL trades at a premium valuation, so any slip in execution, margins, or order wins could affect investor sentiment.
Investor take: HAL combines a robust order book, global relevance, zero leverage, and near-monopoly in multiple defence verticals. With scale, visibility, and strong financials, it’s more than just a PSU—it’s a defence manufacturing powerhouse in the making.
Final pour: HAL has evolved well beyond its legacy image. With execution momentum, deep global linkages, and a ₹1.84 lakh crore order pipeline, it’s now a cornerstone of India’s aerospace ambitions. What comes next could define the country’s defence production journey for the decade ahead.
