HAL Closes Dormant JV as Defence Opportunities and Q1 Performance Strengthen Business Focus
The Bengaluru bench of the National Company Law Tribunal (NCLT) has formally dissolved Infotech HAL Ltd, the dormant 50:50 joint venture between Hindustan Aeronautics Ltd (HAL) and Cyient, following the commencement of its winding-up process in March 2024. As the entity had remained non-performing and dormant, the dissolution is not expected to materially affect HAL’s ongoing defence programmes or active balance sheet.
The development comes alongside increased opportunities for domestic defence manufacturers, with the Ministry of Defence’s Department of Defence Production notifying the sixth Positive Indigenisation List on August 18, covering 405 strategically important defence items with an estimated business potential of ₹3,070 crore.
Separately, the Defence Ministry has floated a global RFP for 60 multirole transport aircraft for the Indian Air Force, involving an estimated programme value of around ₹1 lakh crore ($10 billion), with Indian companies including HAL, Tata and Mahindra expected to lead the programme in partnership with global OEMs.
HAL’s Q1 performance also remained strong, with June-quarter net profit rising 14.7% YoY to ₹1,580 crore versus the ₹1,493 crore estimate, while revenue increased 14.4% to ₹5,515 crore against the ₹5,268 crore estimate. EBITDA grew 18.8% to ₹1,529 crore, ahead of the ₹1,358 crore estimate, while EBITDA margin expanded to 27.7% from 26.6% a year earlier and exceeded the 25.8% estimate, highlighting stronger operating performance during the quarter.