India’s Cabinet Committee on Security has cleared a ₹62,000 crore order to purchase 97 LCA Mk-1As from HAL
Shares of Hindustan Aeronautics (HAL) rose over 3% on Wednesday on reports of receiving a defense order worth ₹62,000 crore from the Indian government.
According to multiple reports, India’s Cabinet Committee on Security has cleared a ₹62,000 crore order to purchase 97 light combat aircraft (LCA Mk-1A) from HAL to boost the capabilities of the Indian Air Force.
This follows orders worth ₹48,000 crore for 83 Mk-1A fighters in February 2021. However, none of the fighters has been delivered yet, according to reports. The IAF could get the delivery of the first of the 83 jets in October.
The LCA Mk-1As will take over from the IAF’s retiring MiG-21s, with the last of the iconic jets set to be phased out in September, ending a 62-year legacy.
HAL’s Bengaluru facility can produce 16 Mk-1A jets annually, and with the addition of the Nashik manufacturing line, total production capacity is expected to increase to 24 jets per year.
Stock Watch
HAL has been a hot stock this year, gaining nearly 35% over the past six months.
At the time of writing, HAL had shed some of its early gains and was trading 1.8% higher at ₹4,533.40.
On Stocktwits, HAL was among the top 10 trending stocks on Wednesday. However, retail sentiment remained ‘bearish’ over the past week. It was ‘bullish’ earlier.
Brokerage firm UBS has maintained a ‘Neutral’ rating on HAL, with a target price of ₹4,900, indicating a 10% upside potential.
Defense Stocks See Strong Gains This Year
India’s defense stocks have been in the spotlight lately. India’s annual defense production reached a record high of ₹1,50,590 crore in FY 2024-25, marking an 18% jump from the previous year, while exports also increased to a record ₹23,622 crore in FY 2024-25, up 12.04%.
Earlier this month, the Defence Acquisition Council (DAC) approved capital acquisition proposals worth around ₹67,000 crore to bolster the operational capabilities of the Indian Armed Forces, including the Army, Navy, and Air Force.
Overall, defense firms have seen strong gains in 2025, with the Nifty India Defense Index rallying nearly 20%.
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