HAL Amends LCA Mk1 FOC Contract, Stock Rises Over 3%

On March 27, 2025,

signed an amendment to its Light Combat Aircraft (LCA) Mk1 Final Operational Clearance (FOC) contract. The original contract, valued at ₹5,989.39 crore and signed in December 2010, has now been revised to ₹6,542.20 crore due to changes in the delivery schedule. This reflects cost adjustments and project modifications, ensuring a smooth execution of the fighter jet program. HAL is actively manufacturing the LCA Mk1A, an upgraded version of the Tejas fighter jet, for the Indian Air Force (IAF). The first 16 units are now scheduled for delivery in 2025, after a delay from the initial target of March 2024. Despite this, the company remains committed to delivering all 83 Mk1A jets by 2029, reinforcing its long-term order book and revenue visibility. In terms of financial performance, HAL reported a net profit of ₹1,432.6 crore in Q3 FY25, marking a 14.28% increase from ₹1,253.5 crore in the same quarter last year. Revenue from operations grew 15% year-over-year to ₹6,956.93 crore, compared to ₹6,060.91 crore in Q3 FY24. EBITDA rose 17.2% to ₹1,681 crore, with margins improving to 24.2% from 23.7%, reflecting operational efficiency and strong execution. A key milestone for HAL came on March 26, 2025, when GE Aerospace delivered the first of 99 F-404-IN20 engines. These engines will power the LCA Mk1A jets, ensuring timely production and strengthening the indigenous fighter jet program. This delivery marks a critical step in HAL’s long-term growth strategy. HAL’s stock price surged over 3% on March 28, 2025, reaching ₹4,294 at 11:58 AM, bringing its market capitalization to ₹2.78 lakh crore. The stock has gained 8.53% in the past week and 36.75% in one month, though it remains down 5.61% over six months. The 52-week high was ₹5,674.75 (July 9, 2024), while the 52-week low was ₹3,046.05 (March 3, 2025). I have attached the daily chart of for your reference Follow me for more such updates, Thank You!