Government defense company Hindustan Aeronautics Limited (HAL) said on Thursday that the cabinet has approved the purchase of 97 Light Combat Aircraft (LCA) MK-1A fighter jets worth Rs 62,000 crore. After this news came, the discussion has intensified whether HAL shares will be able to go to a target of Rs 6,325 set by brokerage firms.
After the news, HAL’s stock rose 1.3% to Rs 4,525.85. The company told the exchange that the Ministry of Defense has given this approval through the Cabinet Committee on Security (CCS). MK-1A is an upgraded version of Tejas fighter, which is planned to replace the old MiG-21 jets.
HAL shares performance
In 2025, HAL shares are 8.2% above so far, but in the last 12 months it has been about 5% below. There has been a decline of 5% in just one month.
Opinion of brokerage firms
- NUVAMA BUY is given a rating and has a target of Rs 6,000. The company expects 21% Revenue CAGR between FY2528.
- Molilal Oswal, while maintaining a buy call, gave a target of Rs 5,800. He says that the delivery of Tejas MK-1A will increase due to fast engine supply from GE. The Ebitda margin in Q1 was 26.6% which is better than expected.
- Choice Institutional Equities changed stance to Buy and targeted Rs 5,570. He said that in the second half of FY26, the Tejas program will increase the revenue rapidly.
- Increded Equality is the most bullish, ie aggressive target of Rs 6,325. He believes that with double-decit revenue growth and better margin, FY26 will have 12 Tejas MK-1A delivery.
- Upgrade PL Capital Stock to Buy and kept a target of Rs 5,500. He described HAL’s Rs 1 lakh crore project pipeline and ISRO’s small satellite launcher program as very positive.
Quarterly results (Q1 FY26)
The company’s consolidated net profit fell 3.7% to Rs 1,383.77 crore, which was 1,437.14 crore in the same quarter of the previous year. At the same time, revenue rose 10.8% to Rs 4,819.01 crore. However, the profit has fallen by more than 65% compared to the March quarter.