HAL Shares Tank 8% As L&T, Bharat Forge Enter Race To Build Fighter Jets

Shares of defence major Hindustan Aeronautics Ltd fell as much as 8.3% to hit an intraday low of Rs 4,100 on the BSE on Wednesday after Larsen & Toubro, Bharat Forge, and Tata Advanced Systems, were shortlisted to manufacture next generation fighter jets, with the state-owned firm missing out on the list. On the flipside, L&T and Bharat Forge were trading over a percent higher.

The final winner under the Advanced Multirole Combat Aircraft (AMCA) programme is expected to be selected within the next three months, after the shortlisted companies submit detailed commercial proposals for manufacturing prototypes of the next-generation fighter jets, was earlier reported.

The shortlisting was carried out based on parameters such as technical expertise,

manufacturing capability, order book position and financial strength. Bidders were required to demonstrate their ability to absorb the AMCA design, along with adequate experience in development, engineering, manufacturing, integration and testing. One of the eligibility criteria also discouraged companies with a large outstanding order book.

As per the current plan, the selected company will partner with the Aeronautical Development Agency (ADA) to build five AMCA prototypes. The defence ministry has earmarked an indicative budget of Rs 15,000 crore for the prototype development phase. The eventual production order, however, is expected to be several times larger once the aircraft is successfully developed and inducted by the Indian Air Force.

The AMCA programme is widely regarded as India’s largest-ever military research and development initiative. The fifth-generation fighter jet is expected to form the backbone of the country’s air combat capability from the mid-2030s. An initial batch of 120 aircraft is likely to be ordered, with deliveries projected to begin around 2035. The total order size could rise substantially over time as more advanced variants are introduced.

The next-generation fighters are designed to incorporate cutting-edge military technologies, including stealth capabilities, artificial intelligence integration, long-range targeting systems and the ability to operate in coordination with unmanned platforms.