State-run defence behemoth Hindustan Aeronautics Ltd (HAL) on Thursday confirmed that the government has approved the procurement of 97 LCA Mk-1A fighter aircraft, worth Rs 62,000 crore.
"We would like to inform that, as intimated by the Ministry of Defence, Cabinet Committee of Security (CCS) on August 19, 2025 has cleared the proposal for acquisition of 97 Light Combat Aircraft Mk-1A along with related equipment by the Ministry of Defence, for Indian Air Force from the Company," HAL said in an NSE filing.
Post the announcement, HAL shares rose 0.82 per cent to Rs 4,505 by 11 am, having reached an intra-day high of Rs 4,522 at 9.50 am. The stock has risen 0.19 per cent in the last week and risen 8.09 per cent year to date.
The order is considered a major milestone for HAL, which has been developing its homegrown Tejas program to replace India's ageing MiG-21 fleet.
The LCA Mk-1A is a more advanced version of the Tejas fighter, with improved combat capabilities. This order is the second large order for the aircraft after HAL won an earlier contract in February 2021.
Deliveries are anticipated to commence this year, with six aircraft to be delivered in FY26, following previous engine supply issues having been sorted out.
In July, HAL shares had experienced a spirited rally following ten key procurement contracts worth Rs 1.05 lakh crore being cleared by the Defence Acquisition Council (DAC) all in the Buy (Indian–IDDM) category.
Even as net profit dipped 3.7 per cent year-on-year to Rs 1,383.8 crore, HAL's operating revenue increased 10.8 per cent to Rs 4,819 crore in Q1 FY26. EBITDA rose almost 30 per cent to Rs 1,284 crore, increasing margins to 26.7 per cent from 22.8 per cent a year ago, contrary to expectations of a fall.
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