HAL order book to touch ₹2.5 lakh crore in FY26 with a packed contract pipeline, says CMD Sunil

Buoyed by a packed contract pipeline, Hindustan Aeronautics Ltd’s order book position is expected to go up to ₹2.5 lakh crore in FY26. The major deals include the supply of 97 LCA Tejas Mk-1A fighters, 156 light combat helicopters (LCH) and the acquisition as well as upgrades of SU-30 MKI jets, said company CMD Dr DK Sunil on Tuesday.

The projected ballooning of HAL’s order book is premised on ₹55,800-crore worth contracts that the DPSU has already bagged in the last nine months, which comprises ₹39,000-crore of manufacturing orders for 240 AL-31 FP engines (valued at ₹25,350 crore) and acquisition of 12 SU-30 MKI at a cost of ₹12,573 crore, Dr Sunil said at the press conference held on the second day of the 15th edition of Aero India 2025.

HAL has also secured ₹16,500 crore of repair and overhaul (ROH), spares and design and development (D&D) orders, the CMD told reporters. HAL’s sectoral heads – like Director of Operations Ravi K and CEO (Bengaluru complex) Jayakrishnan – too shared the dais with him.

Other deals inked in the last one year cover, among others, the supply of 25 advanced light helicopter (ALH) to the Indian Army, 9 to the Coast Guard, 80 RD-33 engines to IAF, and 65 Dornier mid-life upgrades to the Navy and IAF, respectively.

Book at ₹1.33 lakh crore

With fresh orders, the order book stands at ₹1,33,000 crore as of December 2024, the chief of the leading government aerospace company noted.

“Company’s order pipeline is very healthy. We are actively pursuing two major contracts, namely 97 LCA Mk-1A and 156 LCH orders. Both orders are at an advanced stage of clearance and we expect both contracts to fructify during the next 3 to 6 months. The two orders will add ₹1,30,000 crore to the order book,” he said

Put together, the next 12 months’ order accretion is estimated at ₹1,65,000 crore, including the contract for SU-30 MKI upgrade, Indian Multi Role Helicopter (IMRH) D&D sanction and regular ROH orders.

Though HAL’s hand are full till 2030 owing to orders sourced from the armed forces, exports of its military product remain a challenge, noted Dr Sunil.

During the nine-month period, the HAL chief stated that they have received export orders amounting to ₹300 crore, which is only one per cent of the business.

“Exports of indigenous platforms to friendly foreign countries and achieving maximum indigenous content in our platforms are the immediate challenges that we need to overcome,” he said.

On India finding it difficult to sell LCAs to foreign militaries, he said a squadron of Tejas costs over $1 billion dollar and not many countries can afford it. To push for its sale, he explained, the Centre is trying to extend line of credit (LoC) to countries for materialising the deals.

Credit and China

Last year, two Dornier 228 aircraft were exported to the Guyana Defence Forces after the government extended LoC. However, the leading DPSU has participated in a contract for supply of 8 Dornier aircraft to Malaysia. Philippines has shown interest in ALH and queries have also come from some North African countries, he stated.

To boost exports, the HAL has come up with a multi-pronged strategy that entails setting up offices abroad and tying up with local companies to facilitate maintenance and repair.

For instance, it has partnered with Fadia in Argentina after both countries signed an MoU showing an interest in the ALH.

On competition with Chins, Dr Sunil said HAL’s biggest advantage is its own IPR. “Certain West Asian countries are allergic to doing business with some other countries,” he said.

Sunil also said that HAL is investing ₹2,500 crore annually for Research and Development (R&D) of aerospace products.

It has invested ₹500 crore for expansion of its existing facilities, including at Guntur for LCH and light utility helicopter, to meet deadlines. It has also earmarked another ₹500 crore for infrastructure development.