Nomura has reiterated its buy rating on Hindustan Aeronautics Ltd (HAL) and raised its target price to ₹6,100 after the Ministry of Defence signed a ₹62,370 crore contract with the company for 97 Light Combat Aircraft (LCA) Mk1A jets.
The order includes 68 fighter jets, 29 twin-seaters, and associated equipment, with deliveries beginning in FY28 and scheduled to conclude over six years. Nomura said this deal will significantly strengthen HAL’s order book, which is expected to reach ₹2.45 lakh crore by the end of Q2FY26.
The brokerage said the large defence order reinforces HAL’s growth visibility and secures a substantial pipeline for the next decade. It added that HAL’s strong indigenous capability and execution record put it in a favourable position to capitalise on future orders as well.
Disclaimer: The views and recommendations made in this article are those of Nomura. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
