Defence Ministry Signs Contract with HAL for Procurement of 12 Su-30MKI Aircraft

The Ministry of Defence has finalised a contract with Hindustan Aeronautics Ltd(HAL) for acquiring 12 Su-30MKI aircraft along with the requisite associated equipment. The total value of the contract works out to 13,500 crore INR, inclusive of taxes.

The aircraft will have 62.6% indigenous content. Most of the components for the aircraft will be made by the Indian defence sector due to increased indigenization. All the aircraft will be manufactured at Hindustan Aeronautics' Nashik facility.

Brokerage firm UBS in its note said that with this order, HAL has received manufacturing orders worth ₹40,000 crore year-to-date, which is 40% of their financial year 2025 order intake of 1 lakh crore INR.

UBS expects defence orders to bunch up in the fourth quarter and as a result, HAL remains their top pick within the defence space.

Out of the 15 analysts that have coverage on HAL, 14 of them have a 'buy' rating on the stock, while one has a 'sell' rating.

Shares of HAL ended little changed on Thursday at 4,659INR. The stock has risen 14% in the last one month and have seen a rebound of over 18% from the lows that the stock had made in November, which was below levels of 4,000INR .

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