Shares of Hindustan Aeronautics Limited (HAL) surged 4.69% to ₹4,073.70 in Monday’s early trade after the company announced a major breakthrough in its tax dispute with the Maharashtra government. The rally added over ₹9,000 crore to HAL’s market capitalisation, which now stands at ₹2.70 lakh crore.
HAL informed exchanges that it has accepted the Maharashtra government’s Amnesty Scheme for Public Sector Undertakings (PSUs), agreeing to settle its long-standing tax dispute for ₹2,471 crore. The original tax liability was ₹10,079 crore, of which ₹326.87 crore had already been paid or adjusted. The state’s high-level committee recommended the reduced amount, and HAL confirmed the balance will be reimbursed by the Indian Air Force.
The company clarified that this move will not affect its finances since the payment does not represent a cost to HAL itself.
HAL’s stock opened strong and hit an intraday high of ₹4,043.60, compared to its previous close of ₹3,891.25. The rally comes amid broader optimism in PSU defence stocks, with HAL emerging as a key beneficiary of both operational progress and regulatory resolution.
The day’s trading also saw 1.81 million shares exchanged, with HAL trading at a P/E ratio of 31.04 and a dividend yield of 0.94%.