HAL slides as Tejas crash at Dubai Air Show spooks investors
HAL slides as Tejas crash at Dubai Air Show spooks investors
HAL shares tumble after Tejas jet crash at Dubai Air Show; IAF inquiry and long-term defence demand keep investors watching.
Shares of Hindustan Aeronautics (HAL) opened about 8.5% to 9% lower on Monday after a Tejas fighter jet crashed during a performance at the Dubai Air Show 2025 near Al Maktoum International Airport, killing its pilot. At the opening tick, HAL fell 8.48% to Rs 4,205.25 on the BSE, with market capitalization slipping to around Rs 2.81 lakh crore. The stock has corrected nearly 19% from its 52-week high of Rs 5,166 hit in May 2025 and is down roughly 15% in the last 10 days.
Initial expert assessments pointed to a Negative-G manoeuvre as a possible cause for the mishap, but a court of inquiry by the Indian Air Force has been constituted to determine the exact reasons. While the incident is tragic, observers caution that high-performance demonstration flights carry inherent operational risk in military aviation. Choice Broking noted that this should not be read as a structural issue with the Tejas programme, though sentiment around exports could face a temporary setback.
In market context, HAL’s market value has slipped below that of its state-owned rival BEL for the first time since September 2022, underscoring how a single event can affect relative valuations even as fundamentals remain intact. HAL’s mcap was around Rs 2.97 lakh crore, with the stock trading down, while BEL traded around Rs 3.00 lakh crore in market value.
HAL issued a clarification, saying the Dubai incident is an isolated occurrence arising from exceptional circumstances and would not affect operations or delivery schedules. The company stressed that the broader defence modernisation push and ongoing Tejas Mk1A production ramp-up remain critical to India’s domestic and export strategies.
Analysts say the long-term outlook for HAL hinges on domestic deliveries and the ability to sustain production and exports, even as near-term headlines reflect the Dubai Air Show tragedy. Investors will watch how HAL manages production, orders, and potential shifts in export demand in the coming quarters.
Cover image source: Tejas impact: HAL mcap slips below BEL’s for 1st time since September 2022 as stock tanks 🔗
