HAL will deliver 12 LCA Mk1A fighter jets to the Indian Air Force in 2025, following GE engine deliveries. With a ₹1.89 lakh crore order book and expanded production capacity, HAL is set to drive India’s defence manufacturing growth amid rising geopolitical tensions and a likely hike in defence spending.
India’s defence sector sees major development, public sector aerospace major Hindustan Aeronautics Limited (HAL) announced that it expects to deliver 12 LCA Mk1A fighter jets to the Indian Air Force (IAF) in 2025. This follows the commencement of engine deliveries from American tech giant General Electric (GE), a key supplier for the aircraft’s propulsion systems.
During its earnings call on Friday, HAL said the first Tejas Mk1A combat jet is likely to be rolled out in the next few months. The upgraded LCA Mk1A, a 4.5 generation multi-role fighter aircraft, is an advanced version of India’s indigenous Tejas fighter jet. Designed for enhanced survivability, modern avionics, and superior combat capabilities, the LCA Mk1A is central to India’s push for self-reliance in defence manufacturing.
HAL’s strong order pipeline reflects the growing trust in its production capabilities. As of April 2025, the company’s order book has nearly doubled to ₹1.89 lakh crore, up from around ₹94,000 crore a year ago. A significant portion of these orders includes 97 LCA Mk1A jets, 143 Advanced Light Helicopters (ALH) for the IAF, and 10 Dornier aircraft for the Indian Navy—totaling ₹1.25 lakh crore.
To meet this growing demand, HAL has established two dedicated manufacturing lines for the LCA Mk1A — one in Bengaluru and another in Nashik. The Nashik facility, in particular, is expected to play a pivotal role in scaling up production, with the company announcing plans to expand its aircraft and helicopter manufacturing capabilities.
HAL has outlined a capital expenditure plan of ₹14,000–15,000 crore over the next five years. This translates into an annual investment of around ₹3,000 crore, primarily aimed at bolstering production infrastructure and ensuring timely delivery of aircraft to the Indian armed forces.
The market responded positively to HAL’s announcements. The company’s share price surged by 5% on Friday, buoyed not only by its robust growth forecast of 8-10% in FY26 but also by broader investor confidence in India’s indigenous defence sector. The recent success of Operation Sindoor and rising geopolitical tensions, especially after the Pahalgam terror attack, have further emphasized the need for bolstering domestic defence production.
There are also growing expectations that the government might revise the defence budget upward in response to the evolving security environment, which would further benefit indigenous manufacturers like HAL.
With a growing order book, expanding manufacturing capabilities, and strong government support, HAL is well-positioned to lead India’s march toward self-reliance in defence. The timely delivery of LCA Mk1A fighter jets will not only strengthen the IAF’s combat readiness but also reaffirm the potential of India’s defence manufacturing ecosystem.
