HAL has confirmed that TEJAS MK-1A deliveries to the Indian Air Force could finally commence by August or September 2026, following months of delays caused by engine supply bottlenecks and extended testing cycles.
The company has already received six GE F404 engines, with more expected during FY27, and insists that refinements and integration work are progressing positively.
Hindustan Aeronautics Limited stated during its post‑earnings conference call that deliveries of the TEJAS MK-1A fighter aircraft are now targeted for late summer 2026.
Chairman and Managing Director Ravi Kota emphasised that the program had faced repeated timeline revisions due to engine supply disruptions and ongoing certification requirements, but expressed confidence that the revised schedule would be met. He noted that aircraft fitted with newly received engines were already flying, and further refinements were being implemented to ensure mission reliability.
The company has so far received six engines from GE Aerospace, with additional consignments expected during the current financial year. HAL anticipates receiving between 15 and 20 more engines in FY27, though the final number has not yet been confirmed.
This stabilisation of the supply chain is seen as a turning point, enabling the backlog of airframes to be converted into deliverable fighters. Reports indicate that around 30 TEJAS MK-1A aircraft have already been manufactured, flown and tested using certification‑grade engines, and are awaiting combat‑ready powerplants for formal induction. This proactive manufacturing strategy has allowed HAL to sustain momentum despite logistical bottlenecks.
Investors have closely tracked the TEJAS MK-1A program, with analysts highlighting that delivery schedules have been stretched multiple times. Some questioned whether deliveries could slip beyond FY27, but HAL management reiterated that the program was moving in a positive direction.
Goldman Sachs maintained a neutral rating on HAL stock, trimming its target price slightly to ₹5,225, while noting that execution improvement remained a key trigger for valuation. The brokerage underscored that TEJAS MK-1A deliveries would be central to investor confidence in HAL’s execution capabilities.
Finance Director Barenya Senepati added that manufacturing revenues could become a larger contributor to HAL’s overall performance if deliveries of the TEJAS MK-1A and HTT‑40 trainer aircraft begin during FY27.
HAL guided for double‑digit revenue growth in FY27, with EBITDA margins expected to remain around 30% to 31%. In FY26, the company reported revenue from operations of ₹33,050 crore, a 7% increase from the previous year, while profit before tax rose 12% to ₹12,112 crore. Deliveries of ALH helicopters, AL‑31FP engines and RD‑33 engines helped offset delays in the TEJAS MK-1A and HTT‑40 programs during the year.
HAL’s order book expanded significantly, rising to ₹2.54 lakh crore at the end of FY26 from ₹1.89 lakh crore a year earlier. Fresh orders worth ₹97,028 crore were received during the year, including contracts for 97 TEJAS MK-1A aircraft.
Management expects additional orders worth around ₹90,000 crore over the next two years, covering helicopters, upgrades, and repair and overhaul activities.
Defence analysts point out that once engine supplies stabilise, HAL will be able to deliver a surge of aircraft to the Air Force, reinforcing India’s indigenous fighter fleet and easing squadron strength pressures.
The TEJAS MK-1A represents a significantly upgraded variant of the original TEJAS MK-1, incorporating advanced avionics, electronic warfare systems, and improved maintainability. HAL has confirmed that technical refinements and performance upgrades are still being executed, aimed at enhancing combat capability and mission readiness.
The Indian Air Force has made clear that only fully certified aircraft meeting Air Staff Qualitative Requirements will be inducted, meaning HAL must ensure that the first deliveries meet complete operational benchmarks.
Agencies
