HAL Signs Revised Amendment to LCA Mk1 FOC Contract

Hindustan Aeronautics Limited (HAL), on March 27, 2025, signed an amendment to its Light Combat Aircraft (LCA) Mk1 Final Operational Clearance (FOC) contract. The original contract, signed on December 23, 2010, was valued at ₹5,989.39 crore. Following a revision in the delivery schedule, the amended value now stands at ₹6,542.20 crore.

LCA Mk1A and Delivery Plans

The LCA Mk1A is an upgraded version of the indigenous Tejas fighter jet developed by HAL. The company is currently manufacturing these jets for the Indian Air Force (IAF). HAL is expected to deliver 16 LCA Mk1A units in 2025. The first delivery was initially scheduled for March 2024 but has been delayed due to project-related issues. 

In total, 83 Mk1A units are to be delivered by 2029.

Q3 FY25 Financial Results

For the quarter ended December 2024, HAL reported a net profit of ₹1,432.6 crore, up 14.28% from ₹1,253.5 crore in the same quarter last year. Revenue from operations rose to ₹6,956.93 crore from ₹6,060.91 crore, an increase of 15%. EBITDA rose 17.2% to ₹1,681 crore, and margins improved slightly to 24.2% from 23.7%.

On March 26, 2025, GE Aerospace delivered the first of 99 F-404-IN20 engines to HAL. These engines will power the LCA Mk1A variant.

Stock Performance

On March 28, HAL share price rose over 2% today, trading ₹4,247.05 at 10:49 AM. Its market capitalisation is currently ₹2.78 lakh crore. The stock has gained over 7.5% in the past five trading sessions. It is up 28.60% over the past month but down nearly 7% over the last six months. HAL’s 52-week high was ₹5,674.75 (July 9, 2024), and its 52-week low was ₹3,046.05 (March 3, 2025).

Conclusion 

The revised contract showcases adjustments in the delivery timeline for the LCA Mk1A jets. With engine deliveries now in motion, HAL plans to continue production as it works toward completing the order by 2029.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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 the securities market are subject to market risks, read all the related documents carefully before investing.