HAL Shares Crash Over 6% - Is the Defence Giant Out of India’s Stealth Fighter Project?
Hindustan Aeronautics Ltd (HAL) shares slipped sharply on Wednesday after reports claimed the PSU may be out of India’s ambitious stealth fighter jet project, triggering heavy selling and wiping out thousands of crores in market value.
Shares of Hindustan Aeronautics Ltd (HAL) fell over 6% in early trade on Wednesday, February 4, after a media report suggested the company is no longer in contention for a key defence programme. The stock witnessed heavy selling pressure soon after markets opened, marking its steepest single-day fall in nearly a year.
Market Capitalisation Erodes by ₹18,000 Crore
The sharp decline erased nearly ₹18,000 crore from HAL’s market capitalisation within the first hour of trading. Notably, the stock had last seen a fall of similar magnitude on February 3, 2025, making this drop particularly alarming for investors tracking defence PSU stocks.
HAL Reportedly Out of AMCA Stealth Fighter Race
According to a report by Hindustan Times, citing sources, HAL is no longer part of the race to develop India’s fifth-generation stealth fighter jet — the Advanced Medium Combat Aircraft (AMCA). If confirmed, this would be the first time HAL is excluded from a major indigenous military aircraft project.
Private Players Move Ahead in Evaluation Process
The report added that seven companies had submitted bids for the AMCA programme last year. Out of these, only three have qualified for the next round of evaluation. The final contract is expected to be awarded to the lowest bidder within the next three months.
Who’s Competing for the Stealth Jet Project?
Major private defence players still in the race include Tata Advanced Systems, Adani Defence and Aerospace, and Bharat Electronics (BEL) in collaboration with Larsen & Toubro (L&T). Other contenders include Bharat Forge in partnership with BEML and Data Patterns, Axiscades Technologies, and Goodluck India, which has teamed up with BrahMos Aerospace Thiruvananthapuram Ltd.
HAL Declines to Comment on the Report
CNBC-TV18 reached out to Hindustan Aeronautics for an official response. The company stated that it does not wish to comment on the matter at this stage, citing a lack of clarity regarding the reported developments.
High Leverage Adds to Selling Pressure
Market data shows HAL is among the most leveraged stocks in the margin trading facility (MTF) segment. As of February 1, 2026, leveraged positions in HAL stood close to ₹1,500 crore — second only to the Nippon AMC Silver ETF — which may have amplified the sharp sell-off.
HAL Share Price Today and One-Year Performance
HAL shares were trading at around ₹4,188.10 on Wednesday, down more than 6%. Despite the sharp fall, the stock has delivered a 12% gain over the past one year, reflecting strong long-term interest in the defence manufacturing space.