New Delhi, Aug 21: Public sector defence manufacturer Hindustan Aeronautics Ltd (HAL) on Thursday confirmed that the Centre has approved the acquisition of 97 LCA Mk-1A fighter jets worth Rs 62,000 crore.

"We would like to inform that, as communicated by the Ministry of Defence, Cabinet Committee of Security (CCS) on August 19, 2025 has approved the proposal for procurement of 97 Light Combat Aircraft Mk-1A along with associated equipment by the Ministry of Defence, for Indian Air Force from the Company," HAL said in an exchange filing on the NSE.

Its shares gained 0.82 per cent to touch Rs 4,505 as of 11 am. At 9.50 am, the shares had touched an intra-day high of Rs 4,522. The scrips rose by 0.19 per cent over the past 5 days and has surged 8.09 per cent year to date.

The deal is considered a major milestone for the jet manufacturer, which was preparing an indigenous Tejas program to replace India’s MiG-21 fleet.

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The LCA Mk1A is an upgraded version of the Tejas, designed for improved combat capabilities and the new defence contract marks the second major order for the aircraft following HAL's contract win in February 2021.

Deliveries are expected to kick off this year, with six jets scheduled for FY26, following the resolution of earlier engine supply challenges.

In July, the shares saw a major rally after the Defence Acquisition Council (DAC) gave its nod to 10 major procurement deals worth Rs 1.05 lakh crore, all under the Buy (Indian–IDDM) category.

Even as the net profit of the defence company fell 3.7 per cent year-on-year to Rs 1,383.8 crore, its revenue from operations rose 10.8 per cent to Rs 4,819 crore in Q1 FY 26. EBITDA rose nearly 30 per cent to Rs 1,284 crore, with margins rising to 26.7 per cent from 22.8 per cent a year earlier, contrary to expectations of a decline.

(IANS)

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