HAL Shares Rise 2.5% as DAC Clears Helicopter Procurement

Hindustan Aeronautics Ltd, shares rose 2.5% to Rs 4,976 in early trade after the Defence Acquisition Council (DAC) approved defence procurement proposals worth around Rs 1.10 lakh crore, including 138 Advanced Light Helicopters (ALHs). The development also supported the stock after CLSA retained its Outperform rating and set a target price of Rs 5,481, implying around 13% upside from Monday's closing price. The DAC, chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) to acquisition proposals across the Army, Navy and Air Force. Around 98% of the proposed procurement has been earmarked for Indian industry, increasing the potential opportunity for domestic defence manufacturers. Among the approved proposals, the procurement of ALHs for the Indian Army is particularly relevant for HAL. According to CLSA, the DAC has approved procurement of 138 ALHs from HAL, which could add around 13% to the company's existing $27-billion order backlog and bring approximately $600 million in cash advances. The brokerage also sees a longer-term opportunity for HAL, estimating its decadal pipeline at around $48 billion. Key catalysts include deliveries of the Light Combat Aircraft Mk1A in the second half and greater visibility on the GE engine production deal. HAL shares have gained around 12% so far in 2026, compared with a 9% decline in the Nifty 50, while the company's market capitalisation stood at around Rs 3.3 lakh crore. The latest defence procurement approvals add to the visibility on future order inflows for domestic defence companies