New Delhi, Aug 21 (NationPress) The public sector defense manufacturer Hindustan Aeronautics Ltd (HAL) announced on Thursday that the central government has officially sanctioned the purchase of 97 LCA Mk-1A fighter jets valued at ₹62,000 crore.

"We wish to inform you that, as per the communication from the Ministry of Defence, the Cabinet Committee on Security (CCS) approved the proposal on August 19, 2025, for procuring 97 Light Combat Aircraft Mk-1A along with necessary equipment for the Indian Air Force from our company," HAL stated in a filing on the NSE.

The company’s shares experienced a rise of 0.82 percent to reach ₹4,505 by 11 AM. Earlier, at 9:50 AM, the shares peaked at an intra-day high of ₹4,522. Over the past five days, the stock has increased by 0.19 percent and has shown an impressive 8.09 percent growth year-to-date.

This agreement is viewed as a significant achievement for the jet manufacturer, which has been developing the indigenous Tejas program to replace India’s aging MiG-21 fleet.

The LCA Mk1A is an enhanced version of the Tejas, engineered for superior combat capabilities. This recent defense contract represents the second significant order for the aircraft, following HAL's successful bid in February 2021.

Deliveries are anticipated to commence this year, with six jets scheduled for FY26, post the resolution of previous engine supply issues.

In July, the shares witnessed a robust rally after the Defence Acquisition Council (DAC) approved 10 major procurement contracts amounting to ₹1.05 lakh crore, all categorized under the Buy (Indian–IDDM) scheme.

Although the net profit of the defense company saw a decline of 3.7 percent year-on-year to ₹1,383.8 crore, its operational revenue increased by 10.8 percent to ₹4,819 crore in Q1 FY26. EBITDA surged nearly 30 percent to ₹1,284 crore, with profit margins rising to 26.7 percent from 22.8 percent a year prior, contrary to expectations of a downturn.

–IANS

aar/na