HAL Order Book to Reach ₹2.5 Lakh Crore in FY26 Amid Strong Contract Pipeline: CMD.

Hindustan Aeronautics Ltd (HAL) is set to expand its order book to ₹2.5 lakh crore by FY26, driven by a robust contract pipeline, Chairman and Managing Director Dr. DK Sunil announced at Aero India 2025 recently.

Key upcoming contracts include the supply of 97 LCA Tejas Mk-1A fighters, 156 Light Combat Helicopters (LCH), and the acquisition and upgrade of SU-30 MKI jets. These deals are expected to be finalized in the next three to six months, adding ₹1,30,000 crore to HAL’s order book.

Recent Contracts Strengthen HAL’s Position

In the past nine months alone, HAL has secured ₹55,800 crore worth of contracts, including:

• ₹39,000 crore in manufacturing orders, covering 240 AL-31 FP engines (₹25,350 crore) and 12 new SU-30 MKI jets (₹12,573 crore)


• ₹16,500 crore in repair & overhaul (ROH), spares, and design & development (D&D) orders


• Supply of 25 Advanced Light Helicopters (ALH) to the Indian Army, 9 to the Coast Guard, 80 RD-33 engines for the IAF, and 65 Dornier mid-life upgrades for the Navy and IAF

With these deals, HAL’s order book stands at ₹1,33,000 crore as of December 2024.

Strong Pipeline, But Export Challenges Remain

Looking ahead, HAL anticipates order inflows of ₹1,65,000 crore over the next 12 months, including contracts for the SU-30 MKI upgrade, Indian Multi Role Helicopter (IMRH) D&D sanction, and additional ROH orders.

Despite a strong domestic pipeline, HAL’s exports remain a key challenge, with international orders accounting for just ₹300 crore (1% of total business) over the past nine months.

“Exports of indigenous platforms to friendly foreign countries and achieving higher indigenization are our immediate challenges,” Dr. Sunil stated.

To boost exports, HAL is focusing on:

• Setting up offices abroad


• Partnering with local firms for maintenance and repair (e.g., a tie-up with Argentina’s Fadia for ALH support)


• Exploring credit-line funding to facilitate foreign sales, as seen with the export of two Dornier 228 aircraft to Guyana

While Malaysia is considering a deal for eight Dornier aircraft, and the Philippines has shown interest in ALH, competition with China remains a hurdle. However, HAL’s intellectual property rights (IPR) advantage and strategic positioning give it an edge, Sunil noted.

Investment in R&D and Infrastructure

HAL continues to invest heavily in research and development (R&D), with ₹2,500 crore allocated annually for new aerospace products. Additionally, ₹500 crore has been earmarked for facility expansions, including a new LCH and LUH production facility in Guntur, to meet growing demand.

With a full order book until 2030, HAL remains a key player in India’s defense manufacturing push.

HBL