Multibagger defence stock Hindustan Aeronautics Ltd (HAL) is likely to hog the limelight on Wednesday, March 4, after the company secured a contract worth ₹2,901 crore from the (MoD).
As part of the deal, HAL will supply six Advanced Light Helicopters (ALH) Mk-III configured for maritime operations to the ministry.
“The contract for ALH Mk-III (maritime role) along with operational role equipment, an engineering support package, and performance-based logistics support, valued at ₹2,901 crore, has been inked with Hindustan Aeronautics Ltd,” the ministry said in a statement earlier today.
HAL order win details
According to the ministry, the ALH Mk-II helicopters are being procured for the Indian Coast Guard.
The acquisition is intended to substantially enhance the air defence capabilities of frontline warships against a wide spectrum of aerial threats, the ministry said in the official release published on Tuesday.
It also said that these twin-engine helicopters come with “state-of-the-art” features that are better than the currently operated airborne platforms. They are capable of carrying out a wide range of tasks and are designed to operate both from shore-based airfields as well as from ships at sea.
“The induction will significantly enhance the Indian Coast Guard’s capability for fulfilling the duties of safety and protection of artificial islands, offshore installations and protection of fishermen and marine environment,” the ministry said.
Apart from the contract with HAL, the ministry has also signed a ₹2,182-crore agreement with Russia’s JSC Rosoboronexport for the procurement of surface-to-air missiles and associated missile holding frames.
Together, the project envisages the supply of equipment from more than 200 MSMEs and is expected to generate approximately 65 lakh man-hours of employment.
“The contract reinforces the Government’s commitment to Aatmanirbhar Bharat and the Make-in-India initiative, while further strengthening the nation’s maritime security architecture,” it said.
HAL’s share price trend
The defence stocks are already gaining traction on Dalal Street amid the escalating tensions in the Middle East. According to experts, heightened geopolitical tensions increase the probability of higher global defence spending, which bodes well for defence stocks like HAL.
Shares of ended 1.12% higher at RS 3,956.90 on Monday ahead of the announcement of the deal, even as the broader Indian stock market faced intense selling pressure.
That said, the Maharatna PSU stock has remained slightly over the past five seasons, and down 11% in a month, according to data available on NSE. The year 2026 has remained turbulent for the PSU stock, as on a year-to-date basis, it is down around 10.03%, reflecting continued volatility.
HAL announced its quarterly earnings last month, reporting a net profit of ₹1,866.68 crore in Q3 of FY26, which was 30% higher than ₹1,439.83 crore posted in the year-ago period.
Meanwhile, the defence PSU’s revenue from operations in Q3FY26 increased by 10.65% year-on-year (YoY) to ₹7,698.80 crore from ₹6,957.31 crore.
Meanwhile, HAL has emerged as a multibagger stock, delivering stellar returns across multiple time frames. The PSU defence stock has rallied nearly 650% in the last five years and 194% in three years. HAL share price has gained 24% in the last 12 months despite a volatile Indian stock market.
HAL is a major Indian state-owned aerospace and defence company based in Bengaluru. It focuses on the design, development, manufacture, repair, and overhaul of aircraft, helicopters, engines, and avionics for the Indian Armed Forces.
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