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Defence stock jumps after signing ₹2,312 Cr contract for supplying 8 Dornier aircraft

Alex Smith

Alex Smith

1 hour ago

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Defence stock jumps after signing ₹2,312 Cr contract for supplying 8 Dornier aircraft

Synopsis:- A Maharatna defence PSU rose 2% after securing a ₹2,312 crore order to supply eight Dornier 228 aircraft to the Ministry of Defence. Q3 showed 30% growth in earnings, while operating profit improved from ₹1,683 crore to ₹1,871 crore, with margins steady at 24%.

The shares of a prominent aerospace and defence company gained up to 2 percent in today’s trading session from the day’s low after the company signed a contract worth over Rs 2,312 crore for the supply of eight Dornier 228 Aircraft.

With a market capitalisation of Rs 2,84,149.12 crore, the shares of Hindustan Aeronautics Ltd were trading at Rs 4,248.80 per share, increasing around 2.17 percent as compared to the previous closing price of Rs 4,158.65 apiece.

Significant Order

The shares of Hindustan Aeronautics Ltd have seen positive movement after securing a  Rs 2,312 crore contract from the Ministry of Defence for the supply of eight Dornier 228 aircraft to the Indian Coast Guard. The deal will strengthen indigenous defence manufacturing, generate employment, support MSMEs, and enhance maintenance and lifecycle capabilities, reinforcing the government’s push for Aatmanirbhar Bharat and maritime security.

The company operates through five major complexes across India, comprising 21 divisions and nine R&D centres. It is supported by 12 joint ventures, seven Section-8 companies, and two subsidiaries. With strong indigenous design capabilities, it has developed 17 aircraft in-house and manufactured 14 under licensed technology partnerships.

Its primary customers are the Indian Air Force, Army, Navy, and Coast Guard, serving them for over five decades. The company plays a crucial role in strengthening India’s defence preparedness. It has also exported products and services to multiple countries and is actively working to expand its global footprint.

Currently, it manufactures platforms such as LCA Tejas Mk1A, HTT-40, Dhruv ALH, LCH, and LUH, along with engines and avionics. Production lines for Su-30 MKI and Hawk trainers are also in place. Upcoming projects include naval helicopters, advanced LCA variants, and the Combat Air Teaming System.

The company delivered a healthy performance in Q3FY26, with revenue rising 11% year-on-year from  Rs 6,957 crore to  Rs 7,699 crore. Net profit also grew 30%, increasing from  Rs 1,440 crore to  Rs 1,867 crore, reflecting balanced growth, improved operational efficiency, and steady demand across key business segments.

Comparing Dec 2024 to Dec 2025, operating performance improved moderately. Operating profit increased from ₹1,683 crore in Dec 2024 to ₹1,871 crore in Dec 2025. However, operating margin remained steady at 24% in both quarters, indicating stable profitability despite higher revenue and execution momentum.

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