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One of the largest aerospace companies in Asia

Hal is a completely debt free Navratna Public Sector Undertaking (PSU) company engaged in designing and manufacturing of fighter jets, helicopters, jet engine and marine gas turbine engine, avionics, software development, spare supply, overhauling and upgrading of Indian military aircraft.

Market Price on the date of publishing this report-: 1395 Rs

Hindustan Aeronautics Ltd

Founded in 1940, HAL is one of the world’s oldest and largest aerospace and defence industries. The Indian government purchased a one-third ownership in the corporation in 1941 for Rs. 25 lakh, believing it to be a strategic essential. The government made the decision largely to increase British military hardware supplies in Asia in order to confront the growing danger presented by Imperial Japan during World War II.

The Navratna Corporations are Public Sector Enterprises (PSEs) that can invest up to Rs. 1000 crore, or 15% of their net worth, in a single project without seeking government approval.

HAL did not begin aircraft manufacturing until 1942, when it licenced the construction of Harlow PC-5, Curtiss P-36 Hawk, and Vultee A-31 Vengeance for the Indian Air Force. A Harlow PC-5 was the first aircraft produced. Thus, later in 1942, the government acquired further shares from the company’s remaining promoters and nationalised it. And in few years the factory of HAL had become one of the largest overhaul and repair organisations in the East.

After India gained independence in 1947, the management of the company was passed over to the Government of India.

HAL was created in 1964 when Hindustan Aircraft Limited joined a partnership led by the IAF Aircraft Production Depot, Kanpur, to manufacture the HS748 under licence while also establishing a MiG-21 manufacturing plant. Despite the fact that, with the exception of the HF-24 Marut, HAL was originally not actively engaged in the development of newer types of fighter planes, it played a critical part in the modernization of the Indian Air Force.

Over the years HAL has manufactured numerous goods thereby taking the Indian defence to the most advance stage all over the world. HAL today is one of the largest aerospace companies in Asia. [Source -: Wikipedia]

Production Units

Bangalore Complex

Bangalore complex further consist of following sub divisions

  • Aircraft Division Bangalore -: Responsible for manufacturing a variety of Aircrafts both licensed as well as indigenously designed and developed. So far it has manufactured over 2010 aircrafts of various types
  • Engine Division Bangalore -: Responsible for design, development, manufacture and maintenance of various Aero engines and related products. Division has manufactured more than 3100 engines and repaired & overhauled more than 16,500 engines so far.
  • Overhaul Division Bangalore -: Responsible for Major Overhaul of aircraft of Indian Air Force and Indian Navy and rendering 1st and 2nd Line Maintenance support to aircraft at various IAF and Naval Bases. So far it has serviced over 4000 aircraft of different types and over 6500 Piston Engines.
  • Foundry & Forge Division Bangalore-: Responsible for manufacturing Castings, Forgings, Rolled Rings, Shape Memory Alloy Products instead of Shape Memory Alloy Ferrules, Brake pads and Rubber Products for critical applications for the Aeronautics, Space, Defense, Locomotive, Earth mover and other industries.
  • Aerospace Division Bangalore -: Responsible for manufacturing hardware for India’s growing space programs. It manufactures Light Alloy Structures for the Polar Satellite Launch Vehicle (PSLV), Geo-stationary Launch Vehicle (GSLV MkII), Indian Remote Sensing Satellite (IRS), Indian National Satellite (INSAT) and the structures & welded tanks for the Cryogenic upper stage of GSLV MkII. The Division has taken up full equipping & integration of the strap on L – 40 stage for GSLV MkII and also manufacture of all riveted structures & welded tankages for a larger GSLV MK III vehicle with enhanced capabilities.
  • IMGT Division Bangalore -:  Responsible for providing comprehensive service in areas of Inspection, Spare Parts, Maintenance, Equipment Overhauls & Assembly for Industrial & Marine Gas Turbines under license from reputed manufacturers.
  • Airport Services Centre Bangalore -: Spread over 700 acres of land, it is the only airport in the country which is used for both prototype and developmental test flying and civil traffic.
  • Facilities Management Division Bangalore -: Responsible for Aerospace Division’s. Project management, Facilities management & Estate management.
  • LCA-Tejas Division Bangalore

MiG Complex

Mig complex further consist of following divisions

  • Aircraft Manufacturing Division, Nasik -: Responsible for manufacturing MiG variants; viz MiG-21M, MiG-21 BIS, MiG-27 M as well as ie Su-30 MKI. Along with manufacturing, the division also carries out overhaul of the MiG series aircraft and started ROH of Su-30 MKI.
  • Aircraft Overhaul Division Nasik -: Other than manufacturing and overhaul this division is also responsible for repair and design support of other Russian origin aircrafts.
  • Engine Division Koraput -: Responsible for overhauling and manufacturing Aero Engines of Various types i.e. R11, R25, R29 and RD33 which power MiG-21FL, MiG-21BIS, MiG-27 and MiG-29 respectively.  Over last five decades Division has manufactured more than 1300 engines and overhauled more than 7000 Aero Engines of various types.
  • Sukhoi Engine Division Koraput-: Responsible for manufacturing AL31FP Engines engines for fitment in Su-30MKI Aircraft under Licence from Russia. In 2007-08 facilities were established for overhauling of AL31FP Engines as well.

Accessories Complex 

Accessories complex further has following divisions 

  • TAD-Kanpur Division -: Responsible for carrying out maintenance, repair and overhaul of aircraft, its rotables and undertakes servicing of engines and hydraulic systems of UAVs as well as it also manufactures civil variant of Do-228 aircraft.
  • Accessories Division Lucknow -: Responsible for manufacturing over 1400 different types of accessories .
  • Avionics Division Hyderabad -: Responsible for manufacturing and repair & overhaul of a wide range of avionics equipment, including airborne radars, communication, navigation equipment and on-board computers fitted on fixed and rotary wing platforms of Russian, Western and Indian origin.
  • Avionics Division Korwa

Helicopter Complex

This division further consist of following sub divisions.

  • Helicopter Division Bangalore -: Responsible for manufacturing Rudra, Dhruv, Cheetah, Chetak, Cheetal & Lancer helicopters. Helicopter division has successfully manufactured 600 Single Engine helicopters
  • Helicopter MRO Division Bangalore -: Responsible for providing support to various customers such as Indian Army, Indian Air Force, Indian Navy and Coast Guard
  • Barrackpore Division -: Responsible for Maintenance, Repair , Overhaul as well as assembly of Cheetah and Chetak Helicopters
  • Aerospace Composites Division -: Responsible for manufacturing the composite structural parts for Advanced Light Helicopter (ALH), Light Combat Aircraft (LCA), Light Combat Helicopter (LCH), Light Utility Helicopter (LUH) and PSLV/GSLV.

Business / Goods Manufactured

HAL has created and developed various platforms throughout the years, including the HF-24 Marut, the Dhruv, the LUH, and the LCH. HAL also manufactures indigenous items using DRDO technology in collaboration with Bharat Electronics for avionics and Indian Ordnance Factories for on-board weapons systems and ammunition.



Future Products

Power Plant


Products of aerospace division

Aerospace Division is engaged in the manufacture of Aluminum alloy riveted structures and welded tankages of conical, cylindrical and other shapes with different types of detailed parts such as sheets, rings, brackets, stiffeners, bulkheads, panel bolts, nuts, rivets etc. Some of the important structures manufactured are Heat Shield Assembly, Nose Cone Assembly and Tank and Shrouds used in Satellites.

  • PSLV :  (Polar satellite launch vehicle)
  • GSLV : (GEO-GEO-synchronous satellite launch vehicle)  MK II
  • GSLV : (GEO-synchronous satellite launch vehicle)  MK III
  • Indian remote sensing satellite
  • Indian national satellite

Services-: Aircraft MRO

With extensive and efficient facilities, HAL is able to provide total Maintenance, Repair and Overhaul Support to aircraft ranging from Piston Engine aircraft to the State-of-the-Art aircraft like Mirage 2000.

Apart from regular Maintenance, Repair and Overhaul, HAL also caters to special component level structural repairs on airframe like Tail Plane, Flaps, Under-Carriage Door, Engine Bay Door, Air Intakes, Fin, Rudder, Bird Hit Repairs on Fuselage and Wings, Honeycomb Panel, Integral Fuel Tank Repairs and Replacement of Flexible Fuel Tanks. Our capabilities include Aircraft Major Structural Inspection/Repair, Defect Investigation/Repair, NDT Repairs, Estimation of CG on modified aircraft, Paint Removal and Painting of Aircraft, Nose Cone Repairs, AOG Repairs etc.

Some of the other aircrafts HAL provides services to are

HAL introduces 19-seater civil aircraft, plans to deploy under Udaan scheme

In its first significant attempt to construct small civil transport aircraft, HAL presented a 19-seater aircraft. According to ANI, the Hindustan 228 can fly from semi-prepared and unpaved airstrips.



  • Net Sales in December 2021 will be Rs 5,891.90 crore, an increase of 8.6 percent from Rs 5,425.46 crore in December 2020.
  • Quarterly Net Profit in December 2021 would be Rs. 933.40 crore, up 9.37 percent from Rs. 853.47 crore in December 2020.
  • In December 2021, EBITDA is Rs. 1,623.33 crore, up 24.85 percent from Rs. 1,300.27 crore in December 2020.
  • Hindustan Aeron’s EPS has risen from Rs. 25.52 in December 2020 to Rs. 27.91 in December 2021.

For the Year Ended March 2021

  • Total Sales stood at Rs 22,369 Crore, which was 5% increase from the previous year’s sales of Rs 21,228 Crore. 
  • The Profit Before Tax (PBT) saw a growth of 8% from Rs 3,938 Crore to Rs 4,271 Crore.
  • Profit After Tax (PAT) increased by 14% from Rs 2,842 Crore to Rs 3,233 Crore.
  • The Company paid Dividend of Rs 30 per share of Rs 10 each (300%) for the Financial Year 2020-21, totalling to Rs 1,003.16 Crore.  
  • Order Book position stood at a healthy Rs 80,639 Crore as on March 31, 2021.

During the 2020-21 fiscal year, the company built 44 new aircraft and helicopters, including the Su-30 MKI, LCA Tejas, Dornier Do-228, ALH Dhruv, Light Combat Helicopter (LCH), and Chetak helicopter. It also manufactured 102 new engines and accessories.

The company rebuilt 198 platforms, which included both fixed and rotary wing aircraft of various sorts. In addition, 506 engines were refurbished during the fiscal year under review.


The present outstanding order book position is Rs79000 crores as of end-December’21, and the following platforms for which contracts have been given by the Ministry of Defence are likely to increase the order book by Rs30000 crores.

The orders proposed includes 

  1. 12 LUH for Indian Army and Indian Air Force
  2. 70 HTT-40, 
  3. Mid-life upgrade of Do-228 for Indian Navy,
  4. 25 ALH for Indian Army,
  5. 12 Su-30s.

Su-30 orders are expected to be finalised by Q1FY23, according to management. Furthermore, the business anticipates receiving orders for more than 200 AL-31FP engines and 60 RD-33 engines. The contract value should be between Rs250 and Rs300 billion. The delivery timetable for AL-31 should be six years, beginning 24 months after the order is placed.

Impact of Russia Ukraine War

To reduce its dependency on imports, the firm is also concentrating on localising the production of Russian supplies. In order to lessen its reliance on imports, the corporation is also working on local manufacture of Russian supplies. In the event that Russian supplies fail, management is exploring for other sources of parts and raw materials.

According to the company’s management, Russia has guaranteed the delivery of critical raw materials, but the payment mechanism has yet to be executed.

The reliance on Russian spares has the potential to reduce Routine Overhaul earnings by Rs4000-4200 crores. However, due to a greater reliance on imports, HAL maintains an inventory of 8-9 months for Routine Overhaul.

The principal platforms for which Routine Overhaul is dependent on Russian spare imports are the Su-30, Mig 29, and Mig 21; Mi17 and An32 also undergo RoH with Russian assistance.

HAL has Rs2100 crs of Russian-origin inventory.


As per the Mutual fund analytics platform Fundalysis, developed by Darkhorsestocks large number of Mutual Fund Asset Management Companies have purchased shares of HAL in past few months across various schemes. Some of these AMC’s include HDFC, MIRAE, ICICI, Motilal Oswal etc

For complete details please refer to this link on the platform-: https://mf.darkhorsestocks.in/stock/673


In recent years, India has spent a significant amount of money purchasing planes, artillery, and other defence equipment from many countries. The government is also striving to modernise its military weaponry, given its reliance on Soviet-era equipment, particularly in the air force.

Furthermore, Prime Minister Narendra Modi has made indigenous development of military weapons the government’s key goal. Recently, the government authorised the armed forces to assess all ongoing capital acquisitions and minimise or eliminate imports whenever practicable.

Hindustan Aeronautics, a debt-free government Navratna PSU, is at the forefront of innovation in Indian aerospace engineering and one of Asia’s major aerospace businesses. Given the scale of the orders as well as the government’s Make in India efforts, we are quite positive on the prospects of this home-grown defence company Hindustan Aeronautics, as its order book is expected to rise in the coming years.

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