HAL: Tejas Mk1A Deliveries Key to Execution

remains supported by a strong ₹2.55 lakh crore order book, providing significant long-term revenue visibility. However, the near-term focus is increasingly shifting from order inflows to execution, particularly the Tejas Mk1A programme, which accounts for around 43% of the current order book. HAL expects to begin Mk1A deliveries to the Indian Air Force this year and is targeting at least 10 aircraft by the end of 2026. The programme has faced delays, with radar and missile integration issues still being addressed. At the same time, progress on engine availability and aircraft testing is improving, with HAL having received 10 GE F404 engines for the programme. The company’s ability to convert the large order book into timely deliveries will therefore remain a key earnings monitorable. Beyond Tejas, HAL has an additional order pipeline of around ₹1.8 lakh crore, providing visibility for future growth. However, execution delays and any slowdown or change in defence indigenisation priorities remain key risks. For investors, the pace of Mk1A deliveries, engine availability, order conversion and revenue execution will be important indicators of the next phase of growth.