HAL shares rise 2% as firm hands over 3 aerospace platforms to IAF. What is Goldman Sachs saying?

Shares of Hindustan Aeronautics Ltd gained 2% to their day’s low of Rs 4,889 on the BSE on Monday after the company handed over three indigenously developed platforms to the Indian Air Force (IAF) and Pawan Hans Limited. The platforms included the Dhruv-NG helicopter, LCA Tejas Trainer jets and the HTT-40 basic trainer aircraft.

Defence Minister Rajnath Singh, speaking at the handover ceremony, said the event marked three significant achievements. The indigenously designed and developed Dhruv-Next Generation civil helicopter was handed over after receiving Type Certification from the DGCA. The final batch of LCA Final Operational Clearance (FOC) Trainer aircraft was handed over to the IAF, while the first aircraft from the HTT-40 Basic Trainer series production was also delivered to the IAF.

Praising HAL's work on the HTT-40, Singh said the first series-production aircraft had been handed over to the IAF and described the development as a step towards ending India's dependence on foreign countries in this area. He also said the aircraft's capabilities could create opportunities for exports.


The HTT-40 is a tandem-seat, fully aerobatic basic trainer powered by a Honeywell turboprop engine. It features a glass cockpit and Martin-Baker zero-zero ejection seats. HAL is producing the aircraft under a contract for 70 aircraft with the IAF, which will replace the ageing HPT-32 Deepak fleet.

The LCA Trainer is the twin-seat version of the indigenous Tejas fighter and is used for advanced combat flight training. The Dhruv-NG, meanwhile, is the next-generation civil version of HAL's Advanced Light Helicopter and has been developed for applications including offshore and passenger operations.

The handover ceremony saw two LCA FOC Trainer aircraft delivered to the IAF, completing the twin-seat deliveries under the FOC contract. Four Dhruv-NG helicopters were handed over to Pawan Hans Limited, while the first HTT-40 Basic Trainer aircraft was delivered to the IAF, marking the beginning of deliveries under the 70-aircraft contract.

What is Goldman Sachs saying?

Goldman Sachs has maintained a Buy rating on Hindustan Aeronautics with a target price of Rs 5,870. The brokerage noted that Tejas FOC twin-seater trainers are being handed over to the Indian Air Force, along with HTT-40 basic trainers to the IAF and Dhruv-NG helicopters to Pawan Hans.

It said deliveries are picking up across fighter, trainer and helicopter platforms, while GE has delivered another three F404 engines for the LCA Mk1A. Goldman Sachs said supply constraints are gradually easing, with the focus now shifting towards converting HAL's large order backlog into revenues. The latest handovers also align with the government's push to expand indigenous defence manufacturing.

HAL FY27 outlook

The company said it is well positioned to benefit from opportunities across aircraft, helicopters, aero engines, avionics and maintenance, repair and overhaul (MRO) projects. It added that execution of ongoing programmes, along with expected orders for fighter aircraft, rotary-wing platforms and upgrade projects, is likely to provide strong medium- to long-term revenue visibility.

HAL said these initiatives are expected to support its long-term growth while strengthening its role in India's aerospace and defence ecosystem and improving its competitiveness in global markets.

Last month, the company announced that it signed a long-term agreement with Safran Aircraft Engines for the production and supply of turbine ring forgings in superalloys for the 'CFM LEAP' engine programme.

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.