HAL Plans Aggressive Investment Strategy for FY26 with ₹3,000 Crore Capex Allocation
Hindustan Aeronautics Ltd (HAL), India’s largest state-run aerospace and defence manufacturer, is preparing for an ambitious capital expenditure (capex) outlay of ₹3,000 crore for the fiscal year 2025–26. The proposed investments are part of HAL’s broader strategy to ramp up its production infrastructure and support key national defence programmes including the LCA Mark 2, the GE F414 engine manufacturing, and the Indian Multi-Role Helicopter (IMRH) engine initiative. A senior HAL executive indicated that the company is also allocating capital for upcoming fifth-generation platforms like the Advanced Medium Combat Aircraft (AMCA).
This plan is embedded in HAL’s larger ₹14,000–15,000 crore capex roadmap for FY25–FY29, averaging ₹3,000 crore annually. In comparison, HAL had already spent ₹2,168 crore in FY24, ₹2,081.7 crore in FY23, and ₹1,622 crore in FY22, highlighting its steadily growing commitment to capital investment.
Highlights:
HAL to invest ₹3,000 crore in capex in FY26.
FY25–FY29 capex roadmap totals ₹14,000–15,000 crore.
Investments focused on LCA Mk2, GE-F414 ToT, IMRH, AMCA, and engine programmes.
Past capex: ₹2,168 crore in FY24 and ₹2,081.7 crore in FY23.
Monetisation of Prime Delhi Land to Support Capex Outlay
To partially fund its capex drive, HAL is considering monetising a portion of its five-acre non-core land parcel located in Delhi, which includes residential quarters and plant infrastructure. According to a government official, the land could fetch ₹300–400 crore, providing a substantial capital boost without needing additional government support.
The Department of Public Enterprises (DPE) under the Finance Ministry is overseeing the asset monetisation initiative, although HAL and its administrative ministry will handle execution. The monetisation decision forms part of a larger government push to extract value from underutilised central public sector enterprise (CPSE) assets.
“HAL has some interest in selling its non-core land assets. They are still preparing the document to decide how much they want to sell and how much to retain,” the official noted.
Highlights:
HAL planning to monetise part of a 5-acre non-core land in Delhi.
Estimated valuation of land: ₹300–400 crore.
DPE facilitating the asset monetisation process across CPSEs.
Monetisation supports HAL’s self-funded capex strategy.
Strengthening Infrastructure: Forging Presses, Carbon Fibre Facility, and Engine Programs
HAL’s forward-looking capex strategy includes building 20,000-tonne isothermal and 50,000-tonne hydraulic presses to bolster capabilities in engine and aerostructure forgings. Additionally, a carbon fibre facility with a proposed ₹600 crore investment is expected to enhance HAL’s indigenous production capacity of advanced materials.
The company has earmarked ₹4,000 crore for the IMRH programme and internally committed ₹2,000 crore for the Utility Helicopter–Marine variant. These projects align with HAL’s shift towards high-value, indigenous platforms with dual civil-military applications. Deliveries for HTT-40 trainers, civil ALHs, and LCH helicopters are scheduled for FY26, while marine helicopters for the Indian Navy are slated for FY27.
Highlights:
₹600 crore investment in carbon fibre manufacturing facility.
Forging presses aimed at boosting component strength and scale.
₹4,000 crore for IMRH programme; ₹2,000 crore internally funded for UH–Marine variant.
Deliveries for HTT-40, ALH, and LCH due in FY26.
HAL Scales Engine Production, Ties Up with GE and Safran for Key Initiatives
HAL is also significantly expanding its engine manufacturing operations. Production is being scaled for key engines including the AL-31FP, RD-33, LM-2500, and Shakti variants. The company is concurrently preparing for the implementation of the GE-414 engine programme under transfer of technology from General Electric, and is co-developing the IMRH engine in partnership with French aerospace major Safran.
These engine initiatives are pivotal to India’s self-reliance in aerospace propulsion systems and are designed to localise critical technologies that have long been imported. HAL’s partnerships with GE and Safran further signal a strategic pivot towards high-precision engine manufacturing that can support long-term indigenous aircraft programmes.
Highlights:
Engine production scaled for AL-31FP, RD-33, LM-2500, Shakti variants.
Preparing for GE-F414 engine programme with ToT from GE.
Joint development of IMRH engine with Safran underway.
Focus on localisation of propulsion systems for indigenous platforms.
Robust Order Book and Operational Role in Recent Military Action
Despite global supply chain challenges, HAL recorded provisional FY25 revenues of ₹30,400 crore and holds a strong order book of ₹1.84 lakh crore, including the recent ₹62,777 crore order for 156 Light Combat Helicopters (LCH Prachand) — the largest order in HAL’s history.
HAL played a key role during Operation Sindoor in May 2025, ensuring rapid maintenance and operational readiness of the IAF’s combat aircraft fleet amid India’s cross-border counter-terror operations. The company’s enhanced repair and overhaul (ROH) capabilities were instrumental in supporting the Indian Armed Forces during the crisis.
Highlights:
Provisional FY25 revenue: ₹30,400 crore.
Order book at ₹1.84 lakh crore; includes ₹62,777 crore LCH order.
HAL ensured fighter aircraft readiness during Operation Sindoor.
ROH capability significantly strengthened to support IAF missions.
