HAL shares jumped over 2% after the aerospace giant signed a landmark deal with General Electric for 113 jet engines. Here’s why experts say the rally could just be the beginning
HAL’s Big Win with GE Triggers Stock Surge
If you’ve been keeping an eye on defence stocks lately, here’s one update you can’t miss. Shares of Hindustan Aeronautics Limited (HAL) jumped over 2% on Monday after the company announced a major deal with General Electric (GE) of the USA.
This agreement covers the supply of 113 F404-GE-IN20 engines that will power India’s next batch of Tejas Mk1A fighter jets, along with a full support package. For a sector that thrives on strategic partnerships, this move signals both technological strength and long-term growth for HAL — and confidence from global giants like GE.
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What’s in the Deal — and Why It Matters
HAL confirmed via its official X (formerly Twitter) handle that GE will begin engine deliveries from 2027 through 2032, supporting the Indian Air Force’s order of 97 Tejas Mk1A aircraft.
To put that in context, HAL had earlier signed a contract in February 2021 for 83 Tejas Mk1A jets worth ₹36,400 crore, with deliveries scheduled till February 2028. Ten of those aircraft are already assembled, though most are using reserve engines. The latest engine supply will ensure a smoother production line in the coming years.
This deal reinforces India’s “Make in India” defence push, reducing import dependence while strengthening local manufacturing capabilities — a critical step as the country aims for defence export growth worth billions by 2030.
What Analysts Are Saying
According to a PL Capital research note, HAL’s fundamentals remain rock solid. The company currently holds an order book of ₹2.5 lakh crore and expects another ₹1 lakh crore in fresh orders within the next two years.
Between FY25 and FY27, the brokerage projects HAL’s revenue to grow at a CAGR of 11.6%, EBITDA at 8.9%, and profit after tax (PAT) at 6.1%.
PL Capital’s analysts have a target price of ₹5,500 for HAL, implying an upside of around ₹800 from current levels. They also expect HAL to deliver 8–10 Tejas Mk1A aircraft by FY26, further strengthening its position as India’s leading aerospace manufacturer.
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What Investors Should Know
For investors, this news isn’t just about one deal — it’s about momentum. HAL’s consistent order wins, rising exports, and strong government backing make it a standout in the defence and PSU space.
With an expanding order pipeline, global collaborations, and robust financials, HAL looks well-positioned to continue its growth flight path in the coming years.
If you’re tracking long-term defence opportunities, this may be the stock to watch closely.
