HAL shares sink over 8% following Tejas fighter jet accident in Dubai
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Shares of Hindustan Aeronautics (HAL) crashed over 8% in early trade today as sentiment was dented following a Tejas fighter jet accident during the Dubai Air Show on Friday. The fighter jet, manufactured by the Indian PSU company, crashed during the event, resulting in the death of IAF officer Wing Commander Namansh Syal.
Weighed down by the development, HAL share price fell as much as 8.48% to ₹4,205.25 on the BSE, in an otherwise flat broader market.
At the time of reporting, HAL shares were down 3.37% at ₹4,439.95, with a market capitalisation of ₹2.96 lakh crore. The PSU defence heavyweight has risen 6.5% in the calendar year 2025 but has declined over 11% in six months and nearly 8% in a month.
The weakness in HAL shares was in line with the Nifty Defence index, which fell up to 1.5%. Sectoral heavyweights including Paras Defence, BEML, Cochin Shipyard, Data Patterns, GRSE, and Zen Tech slipped over 2% each in early trade.
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Meanwhile, the equity benchmarks BSE Sensex and NSE Nifty were trading higher by 0.15% each.
The HAL Tejas is an Indian single-engine, 4.5-generation, delta-wing, multirole combat aircraft manufactured by HAL for the Indian Air Force (IAF) and the Indian Navy. The aircraft made its first flight in 2001 and entered service with the IAF in 2015.
It is India’s first indigenously developed, smallest and lightest supersonic fighter jet of its generation.
In September 2025, the Ministry of Defence signed a contract with HAL for the procurement of 97 Light Combat Aircraft (LCA) Mk1A—including 68 fighters and 29 twin-seaters—along with associated equipment for the Indian Air Force. The deal is valued at over ₹62,370 crore, with deliveries scheduled to begin in 2027–28 and to be completed over six years.
The aircraft will feature over 64% indigenous content, incorporating 67 additional components compared to the earlier LCA Mk1A contract signed in January 2021. Key indigenous systems such as the UTTAM AESA radar, Swayam Raksha Kavach, and advanced control-surface actuators will further bolster India’s Aatmanirbharta push.
As of September 30, 2025, HAL’s order book stood at approximately ₹2.52 lakh crore, compared to ₹1.84 lakh crore as of March 31, 2025.
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