MoD Signs ₹62,370 Crore Contract with HAL for 97 LCA Mk1A Aircraft; Share Price in Focus

On September 25, 2025, the Ministry of Defence (MoD) signed a landmark contract with Hindustan Aeronautics Limited (HAL) for the procurement of 97 Light Combat Aircraft (LCA) Mk1A. 

This ₹62,370 crore contract, excluding taxes, is a major step towards strengthening indigenous defence capabilities under the Aatmanirbhar Bharat initiative. The delivery of these aircraft will begin in 2027-28 and continue for 6 years.

Contract Highlights: HAL to Deliver 97 Advanced Fighter Aircraft

The agreement includes 68 single-seater fighters and 29 twin-seater aircraft for the Indian Air Force. This procurement follows an earlier LCA Mk1A order from January 2021 and now incorporates 67 additional indigenous components. The LCA Mk1A is the most advanced version of India’s indigenously developed combat aircraft, offering enhanced capabilities and reducing dependency on foreign suppliers.

The aircraft will feature over 64% indigenous content, integrating high-tech systems like the UTTAM AESA Radar, Swayam Raksha Kavach self-protection suite and indigenous control surface actuators. This move is a significant push for the ‘Buy (India-IDDM)’ category under the Defence Acquisition Procedure 2020.

Boost to Domestic Industry and Job Creation

The production process will directly engage 105 Indian companies and is expected to generate around 11,750 direct and indirect jobs annually over 6 years. This will offer a significant uplift to India's aerospace ecosystem, expanding manufacturing capabilities and technical expertise within the country.

Read More: Defence Stocks in Focus: 18% Capex Push Proposed, ₹75,000 Crore in FY26 Deals Expected!

Strengthening Aatmanirbhar Bharat in Defence

This large-scale procurement marks a significant milestone in India's goal to become self-reliant in defence manufacturing. The LCA Mk1A will provide the Indian Air Force with a capable, modern platform while promoting innovation, indigenisation and strategic autonomy. HAL's growing order book also reflects strong government backing for indigenous defence PSUs.

Hindustan Aeronautics Share Price Performance

On September 25, 2025, Hindustan Aeronautics share price opened at ₹4,725.00 on NSE, above the previous close of ₹4,723.90. During the day, it surged to ₹4,827.60 and dipped to ₹4,710.00. The stock is trading at ₹4,790.40 as of 2:39 PM. The stock registered a moderate gain of 1.41%.

Over the past week, it has declined by 2.56%, over the past month, it has moved up by 10.26%, and over the past 3 months, it has moved up by 0.29%.

Conclusion

The ₹62,370 crore contract between MoD and HAL not only strengthens India's air defence preparedness but also reinforces its commitment to indigenisation through the Aatmanirbhar Bharat mission. With delivery scheduled to begin in 2027-28, this programme is set to transform India’s aerospace landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.