HAL shares soar 3% as defence firm signs mega deal with GE Aerospace for procurement of 113 jet engines

This comes after the the defence firm sealed a major deal with American defence major GE Aerospace to procure 113 jet engines for its Tejas light combat aircraft programme.

The stock was trading at ₹4,760 per equity share, up 2.88%, at around 11:07 pm.

The firming up of the deal came notwithstanding a downturn in India-US relations after the Trump administration slapped a 50% tariff on Indian goods.

Under the deal, the delivery of the F404-GE-IN20 engines will begin in 2027, and the supplies will have to be completed by 2032, officials said.

The size of the deal is learnt to be close to $1 billion (approximately ₹8,870 crore). The HAL said it has entered into an agreement with General Electric Company to acquire the engines and support package for execution of the 97 Light Combat Aircraft Mk1A programme.

The defence ministry in September sealed a ₹62,370 crore deal with the HAL to procure 97 Tejas MK-1A light combat aircraft for the Indian Air Force.

Tejas is a single-engine multi-role fighter aircraft capable of operating in high-threat air environments. It has been designed to undertake the air defence, maritime reconnaissance and strike roles.

The HAL is also using GE F404-IN20 engines to power another lot of LCA MK1A jets.

In February 2021, the defence ministry sealed a ₹48,000 crore deal with HAL for the procurement of 83 Tejas Mk-1A jets for the IAF.

The delivery of the jets is facing delays primarily due to GE Aerospace missing several deadlines for the supply of its aero engines to power the jets.

The IAF is looking at inducting the warplanes, as the number of its fighter squadrons has gone down to 31 from the officially sanctioned strength of 42.

HAL share price

On Friday, shares of HAL closed at ₹4,632 apiece on NSE, rising 0.84%.

Over the last five trading days, shares of the firm have lost 1%, while for a month’s period, they have declined over 4%.

Since May 9, 2025, which is six months, the stock has climbed 3%. Year-to-date, it has soared more than 11%.

The company’s market capitalisation stands at ₹3.09 lakh crore.

Shares of the firm had touched their one-year high of ₹5,165 apiece on May 16, 2025, while their 52-week low of ₹3,046.05 was hit on March 3, 2025.

About Hindustan Aeronautics

Hindustan Aeronautics Limited (HAL) is a state-owned aerospace and defence company based in Bengaluru. It is a public sector undertaking operating under the Ministry of Defence.

Hindustan Aircraft Limited was founded by Walchand Hirachand in December 1940. The government acquired a one-third stake in HAL in 1941. The HT-2 Trainer aircraft, manufactured by HAL, took its first flight in August 1951. The government established Aeronautics India Limited (AIL) in August 1963 to start the production of MiG-21 aircraft. In October 1964, Hindustan Aircraft Limited merged with Aeronautics India Limited, leading to the formation of HAL as it is known today.

HAL was listed on BSE and the National Stock Exchange (NSE) on March 28, 2018.