HAL Shares Fall Further After Reports of Non-Shortlisting for AMCA Fighter Jet Project
HAL's shares declined further on reports it was not shortlisted for India's next-gen AMCA stealth fighter.
Shares of state-run aerospace and defence major Hindustan Aeronautics Ltd (HAL) extended their decline for a second consecutive session on Thursday, as investor concern intensified over reports that the company may have lost its leading role in India’s Advanced Medium Combat Aircraft (AMCA) programme. The AMCA, a fifth-generation stealth fighter jet project expected to be central to India’s future air combat capabilities, has drawn strong market interest and remains one of the country’s most ambitious defence initiatives.
Trading on major Indian stock exchanges saw HAL’s shares fall sharply following media reports indicating that the state-run firm was not shortlisted for the next stage of the AMCA programme. Private sector companies including Tata Advanced Systems, Larsen & Toubro (L&T) and Bharat Forge have been reported as advancing in the bid process, a development that market participants interpreted as a setback for HAL’s strategic role in indigenous combat aircraft manufacturing.
Despite the market reaction, HAL issued an official clarification on Wednesday stating that it has not received any formal communication regarding its exclusion from the AMCA programme, and therefore could not comment on the reports. The company underscored that its extensive confirmed order book provides robust revenue visibility and that it continues to execute multiple high-priority defence and civil aviation projects.
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Market analysts note that HAL’s steep sell-off — which saw intraday declines of more than 8 % in some sessions — reflects investor uncertainty over future revenue streams rather than any confirmed change in government policy or programme structure. The AMCA project, estimated to involve a prototype development budget of around ₹15,000 crore, is seen as a potential growth driver for firms involved in design and production.
The broader defence manufacturing landscape in India has been evolving, with a policy push toward greater participation by private entities in complex aerospace programmes. This shift is intended to foster competition, accelerate technology acquisition, and deepen domestic industrial capabilities. The final selection of a partner to build AMCA prototypes is expected within the coming months, after detailed technical and commercial evaluations.
Investors and industry observers will be watching closely for official government communication on HAL’s role and the ultimate structure of the AMCA programme. Until such confirmation is provided, markets are likely to remain sensitive to developments around this strategically significant defence project.a
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