HAL issues clarification as shares dive 8% after Tejas jet crash; Choice maintains 'Buy'
Following the incident, stock exchanges NSE and BSE sought a clarification from the defence PSU. Responding to the queries, HAL said, "We would like to bring to your attention that the recent incident during the aerial display at the Dubai Air Show is an isolated occurrence arising out of exceptional circumstances."
- Nov 24, 2025,
- Updated Nov 24, 2025 1:31 PM IST
Shares of Hindustan Aeronautics Ltd (HAL) saw a sharp decline in Monday's trade after a Tejas fighter jet crashed during an aerial display at the Dubai Air Show. The stock slipped 8.48 per cent to a day's low of Rs 4,205.25. It later recovered part of the losses and was last trading 3.37 per cent lower at Rs 4,440.
Following the incident, stock exchanges NSE and BSE sought clarification from the defence PSU. Responding to the queries, HAL said, "We would like to bring to your attention that the recent incident during the aerial display at the Dubai Air Show is an isolated occurrence arising out of exceptional circumstances. We would like to assure that there is no impact on the Company's business operations, financial performance or its future deliveries. The Company is extending its full support and cooperation to the agencies conducting the investigation. The Company will continue to keep the stakeholders informed of any material developments."
Choice Institutional Equities said the event does not alter its outlook on the company. "In our assessment, accidents during training or high-performance demonstration flights remain an inherent operational risk in military aviation. We believe that this incident does not indicate any structural issues with the Tejas programme. Instead, we expect HAL's long-term fundamentals to remain robust, supported by strong execution, established order visibility and continued strategic importance to India's defence modernisation plans," it noted.
The brokerage added that while export sentiment could see a temporary impact, domestic delivery schedules -- particularly the Tejas Mk1A ramp-up -- remain the key focus.
"Overall, we expect short-term volatility, but believe the broader programme remains firmly on track and aligned with India's long-term defence capability goal. We maintain our BUY rating on HAL with a target price of Rs 5,570, valuing the company at 35x FY27/28E average EPS."
Shares of Hindustan Aeronautics Ltd (HAL) saw a sharp decline in Monday's trade after a Tejas fighter jet crashed during an aerial display at the Dubai Air Show. The stock slipped 8.48 per cent to a day's low of Rs 4,205.25. It later recovered part of the losses and was last trading 3.37 per cent lower at Rs 4,440.
Following the incident, stock exchanges NSE and BSE sought clarification from the defence PSU. Responding to the queries, HAL said, "We would like to bring to your attention that the recent incident during the aerial display at the Dubai Air Show is an isolated occurrence arising out of exceptional circumstances. We would like to assure that there is no impact on the Company's business operations, financial performance or its future deliveries. The Company is extending its full support and cooperation to the agencies conducting the investigation. The Company will continue to keep the stakeholders informed of any material developments."
Choice Institutional Equities said the event does not alter its outlook on the company. "In our assessment, accidents during training or high-performance demonstration flights remain an inherent operational risk in military aviation. We believe that this incident does not indicate any structural issues with the Tejas programme. Instead, we expect HAL's long-term fundamentals to remain robust, supported by strong execution, established order visibility and continued strategic importance to India's defence modernisation plans," it noted.
The brokerage added that while export sentiment could see a temporary impact, domestic delivery schedules -- particularly the Tejas Mk1A ramp-up -- remain the key focus.
"Overall, we expect short-term volatility, but believe the broader programme remains firmly on track and aligned with India's long-term defence capability goal. We maintain our BUY rating on HAL with a target price of Rs 5,570, valuing the company at 35x FY27/28E average EPS."