Hindustan Aeronautics Ltd. said it expects to begin deliveries of Tejas Mk1A fighter aircraft to the Indian Air Force by August or September after delays linked to engine supplies and ongoing testing work slowed the programme's rollout.
The company said it has received six engines from GE Aerospace so far and expects more supplies during the current financial year, raising hopes that deliveries of the fighter jet programme could begin after repeated timeline revisions.
"We are hopeful that by August-September we should be able to start the delivery," Chairman and Managing Director Ravi Kota said during the company's post-earnings conference call on Friday.
The Tejas Mk1A programme has remained one of the key issues for investors tracking HAL because delivery delays have affected manufacturing visibility and execution timelines. Analysts on the earnings call said delivery schedules had "gotten stretched multiple times", while some investors questioned whether deliveries could slip beyond FY27.
Kota said the aircraft were undergoing further "refinements" and testing iterations even after engine deliveries had started. He said the programme was "moving in a very positive direction".
The company did not disclose details of the refinements but said the aircraft fitted with the newly received engines were already flying. HAL also said GE had committed additional engine supplies during the year. Kota said the company expected around 15 to 20 more engines in FY27, although the final number had not yet been confirmed.
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Manufacturing Growth
The Tejas programme is expected to play a larger role in HAL's manufacturing revenues during FY27.
Finance Director Barenya Senepati said manufacturing revenues could become a bigger contributor if deliveries of the Tejas Mk1A and HTT-40 trainer aircraft begin during the year. "If hopefully our LCA programme and HTT-40, if we are able to deliver, then manufacturing sale will play a dominant role," Senepati said.
HAL guided for double-digit revenue growth in FY27 and said EBITDA margins were expected to remain around 30% to 31%. The company reported revenue from operations of Rs 33,050 crore in FY26, up 7% from the previous year, while profit before tax rose 12% to Rs 12,112 crore.
HAL said deliveries of ALH helicopters, AL-31FP engines and RD-33 engines helped offset delays in the Tejas Mk1A and HTT-40 programmes during the year.
Order Pipeline
HAL's order book rose to Rs 2.54 lakh crore at the end of FY26 from Rs 1.89 lakh crore a year earlier.
The company received fresh orders worth Rs 97,028 crore during the year, including contracts for 97 Tejas Mk1A aircraft. Management said additional orders worth around Rs 90,000 crore were expected over the next two years, including contracts linked to helicopters, upgrades and repair and overhaul activities.
Goldman Sachs maintained a "neutral" rating and cut its target price to Rs 5,225 from Rs 5,255. The brokerage said execution improvement was still awaited and added that Tejas Mk1A deliveries would remain a key trigger for the stock.
ALSO READ: Goldman Sachs Cuts HAL Target Price
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