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Tejas Mk1A rollout from Nashik this month: Here's target for HAL

Tejas Mk1A rollout from Nashik this month: Here's target for HAL

The current orderbook of HAL is diverse and stands at a 101 per cent spike, which assures double-digit growth in the coming years, according to InCred Equities.

Amit Mudgill
Amit Mudgill
  • Updated Jul 7, 2025 3:20 PM IST
Tejas Mk1A rollout from Nashik this month: Here's target for HALInCred Equities reported that HAL’s Chairman and Managing Director confirmed the rollout of the first Tejas Mk1A from the new Nashik facility by the end of July 2025.
SUMMARY
  • Hal’s Nashik line will produce 3-4 jets in FY26 and 8 annually thereafter
  • GE Aviation to supply 12 F404 engines starting July 2025 to support deliveries
  • Radar certification delays led to initial use of imported Israeli AESA radars

Hindustan Aeronautics Limited (HAL) is set to roll out its first Tejas Mk1A from its new Nashik production line by the end of July 2025, according to insights from InCred Equities. This Nashik facility, HAL's third Tejas line, is equipped to produce approximately eight jets per year. In the fiscal year 2026, it is expected to deliver between three to four aircraft, contributing to an overall target of 12 Tejas LCA deliveries this year.

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InCred Equities highlighted that HAL has already constructed six Tejas jets and is advancing its plans despite delays in engine supply. GE Aviation has committed to delivering 12 F404 engines in 2025, with shipments starting in July, ensuring that HAL meets its goal of delivering 12 aircraft in FY26. The Nashik production line is anticipated to significantly boost HAL's output.

The current orderbook of HAL is diverse and stands at a 101 per cent spike, which assures double-digit growth in the coming years, according to InCred Equities. The firm noted that the diversity in HAL’s orderbook, combined with past successful deliveries, positions the company well for continued growth. This strategic diversity not only enhances resilience but also ensures a steady revenue stream, InCred Equities said. 

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The brokerage has 'Add' rating on the stock with a target price of Rs 6,325.

InCred Equities reported that HAL’s Chairman and Managing Director confirmed the rollout of the first Tejas Mk1A from the new Nashik facility by the end of July 2025. The facility is initially set to produce three to four jets in its first year, with a long-term capacity of eight jets per year in a steady state.

HAL is collaborating with private-sector partners to add approximately six jets per year from outsourced fuselage and wing production. This collaboration is expected to increase the total Tejas capacity to around 30 jets per year by FY27, further underscoring HAL's commitment to enhancing production capabilities.

Radar integration has presented some challenges for HAL. The certification of DRDO's indigenous Uttam AESA radar and electronic warfare suite has been delayed. Consequently, HAL has equipped the first 40 Mk1A jets with imported Israeli ELTA AESA radars as originally contracted. The Uttam radar will be introduced from the 41st aircraft onward, according to InCred Equities.

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Furthermore, InCred Equities noted that integrating the Astra missile, a DRDO-developed beyond-visual-range air-to-air missile with a range over 100 km, is a key milestone for the Tejas Mk1A. HAL plans to conduct the first integration and live firing from a Tejas Mk1A in early August 2025, following a successful test launch in March 2025. This integration is crucial as it enhances the aircraft's combat capabilities significantly.

InCred Equities pointed out that the current orderbook comprises diversified products that historically have not encountered major delays, unlike the Tejas Mk1A due to engine delays from GE. Products such as ALH, Su-30, and AL-31FP benefit from HAL's licensed in-house production, which mitigates such risks, ensuring smoother operations and delivery schedules.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Jul 7, 2025 3:11 PM IST
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