HAL Share Price Recovers After Tejas Crash; Stock Down 3.5 Percent on BSE

HAL shares on the BSE dipped around 9 percent in early trade after a Tejas fighter aircraft crashed during a demo flight at the Dubai Air Show on 21 November 2025. The stock later recovered and is now trading about 3.5 percent lower. The reaction came because the incident happened at a time when HAL has been preparing for higher Tejas deliveries and seeing rising interest from export markets. With new details still emerging, traders turned cautious in the morning, but the recovery shows that investors are now waiting for clarity rather than assuming long term damage.

What happened

A Tejas light combat aircraft crashed during a demonstration flight at the Dubai Air Show on 21 November 2025. The crash took place around 14:10 local time at Al Maktoum International Airport. Eyewitnesses said the aircraft lost altitude during a manoeuvre and black smoke was seen from the crash site. The pilot has been confirmed dead.

Why it matters

The Tejas programme is an important part of India’s plan to build and scale indigenous fighter jets. It is also central to HAL’s future growth because the company is increasing production capacity and preparing to deliver more aircraft each year. A high-profile crash during an international air show raises questions about safety, performance during display flights and overall operational risk.

From the market’s point of view, the worry is about future demand and investor confidence. Tejas is not only a defence project but also a key growth driver for HAL. Any negative publicity can affect export discussions and the way global buyers view the aircraft.

Financial angle investors are watching

HAL’s FY25 numbers show that export revenue rose from about ₹310 crore in FY24 to nearly ₹400 crore in FY25. While exports are still a small part of the overall business, they have been rising steadily and Tejas remains one of the main aircraft showcased to international buyers.

HAL has expanded its production lines for the Tejas Mark 1A. With engine supply issues easing, the company expects stronger deliveries in the coming years. Because of this, a crash involving Tejas can influence global perception and may affect the pace of discussions with countries evaluating the aircraft.

HAL clarification: No business or financial impact

On 24 November 2025, HAL issued a clarification to the stock exchanges. The company said the Dubai Air Show crash was an isolated incident and took place under exceptional circumstances. HAL also said there is no impact on its business operations, financial performance or future deliveries. The company added that it is fully cooperating with the investigation and will share any material updates with stakeholders.

This statement helps reduce uncertainty, but the market may still wait for more clarity from the ongoing probe.

What we still do not know

There is no official confirmation yet on what caused the crash. The investigation will look into whether it was a technical issue, pilot error or something related to conditions during the show. It is also unclear whether the incident will lead to additional checks or short-term changes to delivery schedules. There is no update yet on export plans or domestic contract timelines.

Key things to track

Investors will watch for any comments from HAL or the Indian Air Force on operational impact. Updates on inspections, delivery timelines and safety checks will influence trading sentiment. Markets may also react to news on whether the crash affects interest from countries evaluating Tejas. If the investigation finds no design-related issue, the impact on HAL’s reputation may ease. Until then, the stock may see continued caution.

Big picture for HAL

HAL remains financially strong. The company posted revenue of about ₹30,980 crore in FY25 and profit after tax of ₹8,316 crore. Export income rose nearly 29 percent. But with the Tejas programme becoming a central part of HAL’s growth and India’s defence export push, the crash has created a sharper reaction in the stock despite strong financials. Once the investigation report is out and clarity improves, markets will be able to judge whether this is a short-term sentiment shock or something that affects HAL’s long-term plans.

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