HAL shares rise on signing contract with SAFHAL for development and production of Aravalli engines; key details to know

According to a regulatory filing, the contract is for the design, development, manufacture, supply, and lifecycle support of a new-generation high-power helicopter engine in the 3,500 to 4,000 shaft horsepower (shp) power class, named "Aravalli".

“This powerplant has been selected to power HAL's upcoming 13-ton Indian Multi-Role Helicopter (IMRH) and its naval variant, the Deck-Based Multi-Role Helicopter (DBMRH),” it said.

The collaboration will encompass advanced design methodologies, state-of-the-art manufacturing processes, comprehensive testing, and robust product support, in line with the highest international aerospace standards, HAL stated.

Beyond military applications, the engine programme will also offer significant potential for future civil market opportunities, including offshore transportation, utility missions, and VVIP transport, the firm added.

The programme is also expected to further catalyse the development of indigenous Maintenance, Repair and Overhaul (MRO) capabilities in India.

SAFHAL is a joint venture between Hindustan Aeronautics Limited and Safran Helicopter Engines SAS.

Commenting on the development, Ravi K, Chairman and Managing Director of HAL, said: “The signing of this contract marks a significant step forward in India's pursuit of self-reliance in aero-engine technologies. Through this collaborative programme with SAFHAL and Safran Helicopter Engines, we are creating a strong foundation for powering next-generation Indian helicopter platforms. The Aravalli engine programme will not only support the operational requirements of the IMRH and DBMRH but will also contribute meaningfully to the development of a robust domestic aerospace industrial ecosystem."

The Aravalli engine programme represents a new chapter in the strategic relationship between France and India, combining the expertise of our teams to develop world-class propulsion systems for future Indian rotorcraft, said Cedric Goubet, Chief Executive Officer, Safran Helicopter Engines.

“This is the first time Safran HE has taken up such a class of Engine as Co-development. Together, we remain fully committed to supporting our customers and contributing to the growth of India's aerospace and defence capabilities,” Goubet further added.

HAL stock performance

Shares of HAL advanced as much as 1% to hit an intraday high of ₹4,937.60 per unit on the National Stock Exchange (NSE) on Wednesday, August 26.

At around 12:04 PM, the scrip was trading at ₹4,910.60 per unit, up by 0.22%. The stock has fallen 2% in the past week but gained 7% over the month. On a year-to-date (YTD) basis, it has jumped more than 11%.

While the stock hit a 52-week high of ₹5,149.90 per equity share on August 17, 2026, it touched a year’s low of ₹3,479.10 apiece on March 30, 2026.

Hindustan Aeronautics Ltd has a total market capitalisation of ₹3.3 lakh crore as of Augst 26, 2026, according to data on the NSE.