This is the first upgrade that HAL has received from Goldman Sachs since the brokerage initiated coverage on it in October 2025.
Goldman Sachs has upgraded its recommendation on Hindustan Aeronautics (HAL) to “buy” from its earlier rating on “neutral”, and has also raised its price target to ₹5,870 from ₹5,545 earlier. The revised price target implies an upside potential of 26% from Thursday’s closing levels.
Three key factors have driven Goldman Sachs’ upgrade on Hindustan Aeronautics:
First, the brokerage expects HAL’s execution to pick-up from the second quarter of this financial year after a near two-year delay in delivering the Tejas Mk1A fighter jet.
Second, their channel checks suggest that GE Aerospace is likely to streamline deliveries of the F-404 engines from the second half of the current financial year.
Lastly, the street consensus estimates on HAL’s earnings appear to be overly concentrated on the prospects of the LCA Tejas Mk1A platform and do not appear to reflect on other impending platform delivery.
During the earnings call of the previous quarter, the management of HAL had highlighted that it had received six engines from GE and that the aircraft were undergoing tests. The management was expecting to resolve all the issues and stabilize matters by August and September.HAL plans to deliver 20 aircraft in FY27 compared to the initial target of 12 in FY26, which was then cut down to five to six.
The LCA mk1A order size is worth ₹48,000 crore, which is a key part of the company’s overall order book of ₹2.5 lakh crore at the end of FY26.
28 analysts have coverage on Hindustan Aeronautics, of which 23 have a “buy” rating, one says “hold” and four have a “sell” rating on the stock. The consensus estimates of price targets have a 10.1% upside potential from current levels.
Shares of Hindustan Aeronautics are trading 5.3% higher on Thursday at ₹4,893. The stock is up 10% over the last one month, taking its year-to-date advance to 11.3%.
