HAL share price rises 2% as Defence Ministry signs ₹13,500 crore deal for 12 Su-30MKI jets

The stock was up 2% to ₹4,755 apiece on the National Stock Exchange (NSE) in the early trade.

The Ministry of Defence said in a statement that this development would significantly boost the government's Aatmanirbhar Bharat (Made in India) initiative.

"The aircraft would have an indigenous content of 62.6%, enhanced due to indiginisation of many components to be manufactured by the Indian defence industry," it said.

These aircraft would be manufactured at HAL's Nashik division. The supply of these fighter jets would improve the operational capability of the Indian Air Force (IAF) and strengthen the country's defence preparedness.

Last month, the Defence Ministry awarded HAL a contract to upgrade the avionics of the Dornier-228 Transport Aircraft, improving the IAF's operational capability.

"Since the upgrade involves most of the indigenously designed and developed avionics sub-systems, it marks a significant step towards Atmanirbhar Bharat Abhiyan," HAL had said.

In the second quarter of the financial year 2024-25, HAL reported a consolidated profit after tax (PAT) of ₹1,510.49 crore, a 22% jump from ₹1,236.67 crore in the year-ago period.

Revenue from operations increased 6% to ₹5,976.3 crore in Q2 FY25 compared to ₹5,635.7 crore a year back.

EBITDA (Earnings before interest, taxes, depreciation and amortisation) stood at 7.3% at ₹1,604 crore in the three-month period that ended September 2024, compared to ₹1,527.7 crore in the corresponding period last fiscal. The EBITDA margin rose to 27.4% from 27.1%.

Total expenses were reported at ₹4,514 crore in the latest September quarter, up 1% from ₹4,458 crore in the same quarter the previous year.

HAL's total assets at the end of the quarter under review were ₹ 86,529.75 crore, compared to ₹78,095.18 crore as of March 31, 2024.