HAL Shares Soar After Centre Greenlights ₹62,000-Cr Mega Deal for 97 LCA Mark 1A Jets

Defense stocks just got their own stimulus package—and investors are rushing to front-run the cash flow.

The Fuel Injection

India’s cabinet clears a whopping ₹62,000 crore purchase of 97 Tejas LCA Mark 1A fighter jets from Hindustan Aeronautics Limited. That’s not just an order—it’s a multi-decade revenue stream, and the market’s reacting like it just spotted an undiscovered altcoin before a bull run.

Contract Mechanics

HAL doesn’t just build planes; it builds ecosystems. Supply chains light up, employment stabilizes, and export potential quietly simmers. This isn’t procurement—it’s a national infrastructure play disguised as a defense deal.

Market Reaction

Shares surge as traders price in not just the order book, but the signaling: sovereign manufacturing isn’t a talking point anymore—it’s a balance sheet event. Meanwhile, crypto bros are still waiting for their ‘official adoption’ tweet.

Long Game

Defense isn’t a quick flip—it’s illiquid, regulated, and politically exposed. But when a government writes a cheque this big, it isn’t just buying jets—it’s buying strategic autonomy. And autonomy, it turns out, has a pretty fat margin.

So while tech VCs chase AI hallucinations, HAL just landed a contract that would make a central bank blush. Sometimes the real alpha isn’t in disrupting the system—it’s in selling to it.

Also read

IAF’s ₹72,990 cr worth projects for 97 LCA Mk1A fighters and 6 AEW&C aircrafts gets CCS nod

Brokerage UBS has maintained neutral rating on the stock at a target price of 4,900 following the development. UBS noted that this will be the second MK1A order after 2021.

The stock traded 1.44 per cent positive on the BSE at ₹4,517 at 11.09 am after hitting a high of ₹4611.60 against the previous close of ₹4452.85.

Published on August 20, 2025