Hindustan Aeronautics Ltd (HAL) shares jumped 6% after securing two significant contracts from the Ministry of Defence (MoD), valued at Rs 62,700 crore.
These agreements, signed on March 28, 2025, involve the supply of 156 Light Combat Helicopters (LCH), Prachand, to the Indian Armed Forces.
The first contract includes 66 LCHs for the Indian Air Force (IAF), while the second covers 90 helicopters for the Indian Army. Deliveries are set to begin in the third year, continuing over five years. The LCH is designed for high-altitude operations, boasting over 65% indigenous content, aligning with India’s self-reliance goals in defense manufacturing. The project will also involve over 250 domestic companies, particularly MSMEs, generating more than 8,500 jobs.
Additionally, the Ministry of Defence signed a contract with Metrea Management to lease a Flight Refueling Aircraft (FRA) to train IAF and Navy pilots in air-to-air refueling, marking the first wet-leased FRA for the IAF.
With these contracts, the MoD’s defense procurement for FY 2024-25 has reached a record Rs 2,09,050 crore, with 92% awarded to domestic industries. These agreements underscore India’s growing defense capabilities and commitment to indigenous production, bolstering investor confidence in HAL’s future growth.
Hindustan Aeronautics Ltd (HAL) shares opened at ₹4,400, hitting a high of ₹4,425 and a low of ₹4,310. The stock remains volatile, trading between its 52-week high of ₹5,674.75 and low of ₹3,046.05.
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