Hindustan Aeronautics Limited (HAL), a government-controlled aerospace and defense company, has achieved a record-breaking revenue of ₹30,400 crore for the financial year 2024-25. This marks an increase from the previous year’s ₹30,381 crore, demonstrating the company’s resilience despite challenges in supplying light combat aircraft (LCA) and Dhruv advanced light helicopters (ALH). Additionally, HAL has received significant new orders, further strengthening its growth prospects.
Overcoming Supply Challenges
HAL’s Chairman, DK Sunil, highlighted that the revenue milestone was reached despite supply issues with the LCA Mk-1A and ALH. The supply of LCA aircraft was hindered by a shortage of engines, while ALH deliveries were affected due to a fleet-wide grounding following a January 2025 accident in Porbandar, Gujarat. The accident, caused by a “swashplate fracture,” has led to an ongoing investigation.
To mitigate these challenges, HAL ramped up the supply of other products and services, ensuring steady revenue flow. The company remains optimistic about improving its supply chain and overcoming these temporary hurdles.
Progress in Engine Supply
A major bottleneck in LCA Mk-1A production has been the availability of engines. Recently, American aerospace giant GE Aerospace delivered the first of 99 F404-IN20 engines, essential for these aircraft. The company has assured faster production to meet the demand. The Indian Air Force (IAF) had placed an order worth ₹48,000 crore in February 2021 for 83 LCA Mk-1A jets, and GE Aerospace aims to deliver at least 12 engines this year.
Expansion and New Orders
HAL is aggressively expanding its production capacity. Additional manufacturing lines for the LCA Mk-1A and Hindustan Turbo Trainer-40 (HTT-40) aircraft have been set up. Aero-engine manufacturing capacity at Koraput, Odisha, has also been enhanced.
Recent contracts have further boosted HAL’s order book. The Indian Ministry of Defence signed two major deals worth ₹62,700 crore, including an order for 156 Prachand Light Combat Helicopters (LCH). Additionally, in September 2024, HAL secured another large contract worth ₹26,000 crore.
Strong Future Prospects
The company has received ₹1,02,000 crore in new manufacturing contracts and ₹17,500 crore in repair and overhaul contracts during FY 2024-25. With an order book now standing at ₹1,84,000 crore—almost doubling from the beginning of the fiscal year—HAL is set for sustained growth. The company expects an even stronger performance in FY 2025-26, driven by stable supply chains, new orders, and increased production capacity.
