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HAL will hand over the last two LCA Tejas Mk1 FOC twin-seat trainers

ICICIdirect Research 18 Sep 2026 DISCLAIMER

News: HAL will hand over the last two LCA Tejas Mk1 FOC twin-seat trainers and the first three production HTT-40 basic trainers to the IAF, along with Dhruv NG helicopters to Pawan Hans, on September 18.  Separately, HAL CMD said the company has received around 10 GE F404 engines so far and expects to deliver 10 Tejas Mk1A aircraft by March 2027, while GE is expected to supply another 12 engines by December 2026. The company expects technical issues related to Tejas radar and weapon integration to be resolved, while a commercial proposal from GE for co-production of 99 F414 engines is expected by October. HAL has also developed 12 LUH prototypes against a potential requirement of 187 helicopters. The company expects the IMRH engine around 2030, with the aircraft targeted for readiness by 2031-32

View: The handover, coupled with improving GE engine availability, should support a stronger execution cycle for HAL, with the company targeting 10 Tejas deliveries by March 2027 and additional engine supplies from December providing visibility for further ramp-up. The 187-LUH requirement represents a potential opportunity of ~₹23,400 crore, while the 99 F414 engine co-production programme could create a longer-term propulsion opportunity. With an order book of ~₹2.55 lakh crore (7.5x TTM revenue) and management indicating that the available programmes can be executed over the next 2–3 years, improving execution across Tejas, helicopters and other platforms should support conversion of the sizeable backlog into revenue. Beyond the current backlog, F414 co-production and IMRH provide additional growth opportunities, with IMRH targeted for aircraft readiness in 2031-32

Impact: Positive

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