HAL Shares Jump Nearly 2% as GE Delivers 3 Tejas Engines

HAL Share Price: Hindustan Aeronautics shares rose nearly 2% in opening trade on Friday after GE Aerospace delivered three F404-IN20 engines to the company in August for the LCA Tejas programme. The latest shipment takes cumulative Tejas Mk1A engine deliveries to 10 from 7 earlier.

HAL shares were trading at ₹4,855 on NSE at 9:19 am, up ₹89.40 or 1.88% from the previous close.

As of 4th Sep, 10:21 AM

Why are GE's Tejas Engine Deliveries Important for HAL?

GE Aerospace delivered three F404-IN20 engines in August, compared with two expected according to Street estimates. The latest shipment takes cumulative engine deliveries for the Tejas Mk1A programme to 10.

Engine availability has been a major constraint for HAL's aircraft production and delivery schedule. According to media reports, 30 Mk1A airframes have already been assembled, making timely engine supplies important for the company's delivery ramp-up.

Former HAL Chairman D.K. Sunil had said in April that GE had committed to supplying 20 F404 engines between June and December 2026.

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How Many Tejas Mk1A Aircraft Has HAL Been Ordered to Build?

Indian Air Force has placed an order with HAL for 180 LCA Mk1A fighter aircraft.

GE Aerospace is contracted to supply 99 F404-IN20 engines under a ₹5,375 Cr agreement signed with HAL in 2021.

The contract also includes a provision for liquidated damages if GE delays delivery of the F404 engines, according to HAL officials cited in media reports.

The latest shipment therefore provides some relief to HAL as it seeks to accelerate Tejas production during the remainder of 2026.

Why Has the F404 Engine Supply Been Delayed?

GE Aerospace had previously delivered 65 F404-IN20 engines for the original Tejas programme by 2016. With no additional orders at the time, production was subsequently shut down.

After HAL placed an additional order for 99 engines in 2021, GE had to restart F404-IN20 production following a five-year hiatus. The company also had to re-engage suppliers across its global supply chain.

The restart has made GE's production schedule a critical link in HAL's Tejas production ramp-up. HAL may have the capacity to build more fighters, but completed aircraft require engines to move through production and delivery.

What Could Faster Engine Supplies Mean for HAL?

Street estimates suggest faster F404 engine supplies could support HAL's delivery ramp-up and reduce execution risks around the Tejas Mk1A programme.

The key factor now will be whether GE can maintain the pace of deliveries promised for the second half of 2026. Consistent engine availability would allow HAL to better utilise its existing manufacturing capacity.

Conclusion: What Does this Mean for Investors?

HAL shares rose nearly 2% after GE Aerospace delivered three F404-IN20 engines in August. With 180 Tejas Mk1A aircraft ordered and 99 engines contracted from GE, the pace of future engine deliveries remains an important factor for HAL's production and delivery ramp-up.