In a major boost to the Indian Army and Indian Air Force (IAF), the Cabinet Committee on Security (CCS) on Friday approved the biggest-ever defence deal to procure 156 Light Combat Helicopters (LCH) from Hindustan Aeronautics Ltd (HAL). The deal, valued at ₹62,700 crore, marks the largest order ever received by HAL.

The helicopters will be manufactured at HAL’s Bengaluru and Tumkur plants in Karnataka, providing a significant push to job creation and strengthening the domestic aerospace ecosystem.

As part of the agreement, 90 helicopters will be delivered to the Indian Army and 66 to the IAF. These choppers will be deployed along the China and Pakistan borders, enhancing India’s combat capabilities in high-altitude warfare.

The LCH, also known as Prachand, is the world’s only attack helicopter capable of taking off and landing at an altitude of 5,000 meters (16,400 feet)—making it ideal for operations in Siachen Glacier and Eastern Ladakh. It is equipped to fire a range of air-to-ground and air-to-air missiles and can effectively destroy enemy air defence systems.
HAL received the tender for these 156 Light Combat Helicopters in June 2024, and the latest CCS approval paves the way for the mass production of these advanced choppers.

In another key development, the CCS also approved a deal worth ₹7,000 crore for 307 Advanced Towed Artillery Gun Systems (ATAGS). The order will be shared between Bharat Forge and the Tata Group, further bolstering India’s indigenous defence manufacturing capabilities.

HAL share price performance and financial results

Shares of Hindustan Aeronauticals Ltd settled in the green, up 0.40%, quoting at ₹4,177.45 apiece on the NSE. The scrip has surged in nine of the last ten trading sessions, making it the top performer on the Nifty PSE index for March with 35% gains. This marks the best monthly return for the state-run aerospace giant in the last five years.

The last time HAL recorded such strong monthly gains was in June 2020, when the stock jumped 39%. The recent rally reflects growing investor confidence, fueled by positive sentiment surrounding large defence orders and government support for indigenous defence manufacturing.

HAL’s net profit for the third quarter (Q3FY25) increased by 14% from last year to ₹1,432.6 crore, while the topline jumped 15% from last year to ₹6,957 crore.