HAL completes Tejas order as Mk-1A takes focus

completed its original 40-aircraft Tejas Mk-1 order after handing over the final two twin-seat trainers to the Indian Air Force. The stock rose nearly 2% as management said Mk-1A issues are being addressed. HAL now has a much larger Tejas Mk-1A programme ahead, with 180 aircraft ordered. Of these, 83 were ordered in 2021 for about ₹48,000 crore and another 97 in 2025 for ₹62,370 crore. HAL has made 27 Mk-1A airframes so far, but deliveries are still pending. My view is that completing the Mk-1 programme removes one legacy milestone, but the real earnings trigger is the Mk-1A delivery ramp-up. Management said radar, weapons and software-integration issues are being worked on, but it has not committed to a specific delivery timeline. This makes execution more important than the announcement itself. The key number to watch is the conversion of the 180-aircraft order into regular deliveries. Engine availability has also improved, with GE Aerospace delivering three F404 engines in August, taking cumulative deliveries to 10. Faster engine supplies can support production once the remaining aircraft-level issues are resolved. My stance: HAL’s long-term order visibility remains strong, but the next meaningful trigger is the start and pace of Mk-1A deliveries. Investors should track radar and software clearance, engine availability and monthly production numbers. Disclosure: I do not hold any position in Hindustan Aeronautics Limited (HAL). This post is for informational purposes only and is not investment advice.