Hindustan Aeronautics records ₹30,400 crore revenue despite LCA Mk-1A delay

NEW DELHI: State-run plane maker Hindustan Aeronautics Limited (HAL) on Monday announced that it achieved a revenue of ₹30,400 crore in 2024-25 over ₹30,381 crore the previous year despite the shortfall in deliveries of the light combat aircraft (LCA Mk-1A) and the Dhruv advanced light helicopter (ALH), HAL chairman and managing director DK Sunil said.

“The deliveries of LCA were affected due to non-availability of (F404-IN20) engines. The ALH delivery schedule too got hit due to the accident in January 2025 and subsequent grounding of the fleet. However, the deliveries of other products and services were accelerated which helped us maintain the top line,” an HAL statement quoted Sunil as saying.

The engine issue has been resolved, with US firm GE Aerospace last week delivering the first of 99 F404-IN20 engines to HAL for the new LCA Mk-1A, and assuring the Indian side that production was being ramped up to execute the order, a boost for the indigenous fighter programme.

The LCA Mk-1A programme, crucial for the Indian Air Force (IAF) to shore up its fleet, is running behind schedule due to several reasons, including the delay in supply of engines. These engines are meant for the 83 Mk-1As ordered by the IAF for ₹48,000 crore in February 2021.

GE Aerospace is expected to deliver 12 engines this year.

However, the military’s ALH fleet is still grounded after a “swashplate fracture” caused the crash of a coast guard Dhruv helicopter at Porbandar in Gujarat on January 5, and experts are examining the reason for the breakdown of the critical component. The swashplate assembly is a critical part in the ALH’s transmission system.

With the order book significantly improving during the last 12 months, HAL used the year to add capacities as additional production lines for LCA Mk-1A and Hindustan Turbo Trainer-40 (HTT-40) planes were set up, apart from augmenting the aero engine capacity at Koraput in Odisha, the company statement said.

Last week, the defence ministry signed two contracts worth ₹62,700 crore with HAL for 156 Prachand light combat helicopters (LCH) for the armed forces. Also, last September, the ministry signed a ₹26,000-crore contract with HAL for 240 aero-engines for the IAF’s Sukhoi-30 MKI fighter aircraft.

The order book stood at ₹1,84,000 crore as against the opening order book of ₹94,129 crore, HAL said.

“During 2024-25, HAL received new manufacturing contracts worth ₹1,02,000 crore and ROH (repair and overhaul) contracts of ₹17,500 crore. Recently, the company signed a contract with the defence ministry for the supply of 156 Prachand LCH worth ₹62,777 crores. This is the single biggest procurement by the ministry from HAL till date,” the statement said.

With the supply chain issues stabilising, new orders in hands and enhancement of capacities, the company is gearing up for more robust performance in FY 2025-26, it added.