HAL to Manufacture 30 Tejas Mk1A Fighter Jets Annually by FY28 Amid 180-Aircraft Order Book

Hindustan Aeronautics Limited (HAL) is accelerating production of the indigenous LCA Tejas Mk1A fighter aircraft, targeting an annual manufacturing capacity of 30+ aircraft by FY28 from the current capacity of around 24 aircraft per year. The expansion will help the company execute its confirmed 180-aircraft order book, comprising 83 Tejas Mk1A fighters under the initial contract and an additional 97 aircraft ordered by the Government of India. The production ramp-up is expected to strengthen the Indian Air Force's modernization programme while reinforcing India's Atmanirbhar Bharat initiative in defence manufacturing.

HAL Tejas Mk1A Expansion at a Glance

HAL Expands Manufacturing Capacity to Meet Record Order Book

HAL is expanding its manufacturing ecosystem to accelerate deliveries of the Tejas Mk1A fighter aircraft. The company is increasing annual production capacity from around 24 aircraft to more than 30 aircraft by FY28 through additional assembly infrastructure, improved manufacturing efficiency, and greater participation from India's private aerospace supply chain.

The expansion is critical for timely execution of HAL's record fighter aircraft order book and supports the Indian Air Force's ongoing fleet modernization programme. Higher production capacity is also expected to improve operational efficiency and strengthen HAL's long-term revenue visibility.

Three Assembly Lines to Drive Higher Production

To achieve its production targets, HAL has adopted a multi-facility manufacturing model with three dedicated assembly lines. Two production lines are operational in Bengaluru, while a newly operational facility in Nashik has been added to support higher annual output and faster aircraft deliveries.

The multi-line production strategy is expected to reduce manufacturing bottlenecks, improve delivery timelines, and enhance production flexibility.

180 Aircraft Order Provides Long-Term Revenue Visibility

HAL's confirmed Tejas Mk1A order book is among the largest indigenous fighter aircraft programmes undertaken in India and provides multi-year revenue visibility.

The large order pipeline is expected to support sustained manufacturing activity over the coming years while strengthening India's indigenous defence capabilities.

GE Aerospace to Support Engine Deliveries

HAL's production roadmap is closely aligned with GE Aerospace, which supplies the F404-GE-IN20 engines powering the Tejas Mk1A. Timely engine deliveries remain critical for maintaining production schedules and achieving the company's FY28 manufacturing target.

Improved coordination between HAL and GE Aerospace is expected to reduce earlier supply bottlenecks and enable a steady increase in aircraft deliveries.

Private Sector Participation to Strengthen Defence Manufacturing

HAL is expanding collaboration with private defence manufacturers by outsourcing aircraft structures, assemblies, and precision-engineered components. This approach enables the company to focus on final integration, testing, and certification while strengthening India's domestic aerospace supply chain.

Greater private sector participation is expected to improve manufacturing efficiency, create employment opportunities, and support the government's vision of building a globally competitive defence manufacturing ecosystem.

Why This Matters for Investors

The Tejas Mk1A production ramp-up is a key long-term growth driver for HAL. Faster execution of the 180-aircraft order book could improve revenue recognition, cash flows, and operating leverage over the next few years.

As India's defence capital expenditure continues to rise and indigenous procurement gains momentum, HAL remains one of the biggest beneficiaries of the country's long-term military modernization programme.

HAL Financial Snapshot

Strong Defence Order Pipeline Supports Future Growth

Beyond the Tejas Mk1A programme, HAL continues to maintain one of the strongest defence order books in India. The company has secured several major contracts, including 156 Light Combat Helicopters (LCH), 240 AL-31FP engines for the Su-30MKI fleet, 12 Su-30MKI fighter aircraft, and the Dornier-228 Mid-Life Upgrade programme.

These projects provide long-term revenue visibility and reinforce HAL's position as India's leading aerospace and defence manufacturer.

Outlook

HAL's production expansion marks a significant milestone in India's indigenous aerospace manufacturing journey. With three operational assembly lines, improved engine supplies, growing private sector participation, and a confirmed order book of 180 Tejas Mk1A fighter aircraft, the company is well-positioned to increase annual production to 30+ aircraft by FY28.

Successful execution of this roadmap could accelerate revenue growth, strengthen profitability, and further establish HAL as one of the key beneficiaries of India's expanding defence manufacturing and Atmanirbhar Bharat initiatives.

1. How many Tejas Mk1A fighter aircraft does HAL plan to manufacture annually?

HAL aims to increase annual production capacity to 30+ Tejas Mk1A fighter aircraft by FY28, compared with the current capacity of around 24 aircraft per year.

2. How many Tejas Mk1A aircraft has HAL received orders for?

HAL has a confirmed order book of 180 Tejas Mk1A fighter aircraft, including an initial order of 83 aircraft and a follow-on order of 97 aircraft.

3. Where are HAL's Tejas Mk1A manufacturing facilities located?

HAL currently manufactures the aircraft across three assembly lines, including two facilities in Bengaluru and one newly operational facility in Nashik.

4. Which company supplies the Tejas Mk1A engines?

The Tejas Mk1A is powered by the F404-GE-IN20 engine, supplied by GE Aerospace.

5. Why is HAL increasing Tejas Mk1A production?

HAL is expanding production to execute its record order book, support Indian Air Force modernization, strengthen indigenous defence manufacturing, and contribute to the Government of India's Atmanirbhar Bharat initiative.