Hindustan Aeronautics (HAL) share price gained over 2% after GE Aerospace delivered three F404-IN20 engines to the company in August for the LCA Tejas programme. The PSU defence stock rallied as much as 2.82% to Rs 4,914.85 apiece on the BSE.
GE Aerospace said it shipped the three engines to HAL in August 2026, according to a report by ANI. This takes the cumulative deliveries for the Tejas Mk1A programme to ten engines, from seven.
The latest delivery comes as engine availability remains a key issue for the Tejas aircrafts.
HAL has maintained that its production line is ready, but the pace of aircraft production and deliveries depends on the timely supply of F404 engines.
The Indian Air Force has ordered 180 LCA Mk1A aircraft from HAL. The F404-IN20 engine is designed specifically for the Tejas and is a critical component for the single engine fighter.
GE Aerospace is contracted to supply 99 F404-IN20 engines to HAL under an agreement signed in 2021.
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Brokerage firm Goldman Sachs sees the latest supply of F404 engines as incrementally positive for HAL, according to reports.
“This marks a notable improvement in the pace of supplies, with engine availability having been one of key bottlenecks delaying Tejas Mk1A deliveries,” said Goldman Sachs.
As per its channel checks, 30 Mk1A airframes already assembled. According to Goldman Sachs, the timely delivery of engines from GE remains an important factor, which should facilitate HAL's planned ramp up in Tejas Mk1A deliveries, thus reducing key execution risk.
Technical Outlook
HAL share price gave a breakout from a downward-sloping trendline on the weekly chart four weeks ago. The stock subsequently moved higher before retracing to retest the trendline support, where it has once again shown signs of a bounce, noted Sudeep Shah - Head of Technical and Derivatives Research at SBI Securities.
“The PSU defence stock continues to trade above its key short and long-term moving averages, maintaining a positive technical setup. The daily RSI has also turned higher, indicating renewed bullish momentum. The Rs 4,750 – Rs 4,720 zone remains the immediate support area,” said Shah.
According to him, HAL share price is likely to maintain its upward bias as long as it sustains above this zone.
HAL Share Price Performance
HAL share price has gained 17% in three months, and has rallied 26% in six months the PSU defence stock has risen over 10% in one year, and has delivered multibagger returns of 601% over the past five years.
At 10:45 AM, HAL share price was trading 2.42% higher at Rs 4,895.85 apiece on the BSE.
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