The fatal Tejas crash at the Dubai Air Show sparks investor jitters, dragging HAL shares lower despite a robust order pipeline and long-term defence commitments.
Shares of Hindustan Aeronautics Ltd (HAL) fell over 3% on Monday after the company confirmed that a Tejas Light Combat Aircraft crashed during an aerial display at the Dubai Air Show. The market reaction reflected investor concern over the incident, despite HAL’s strong defence order pipeline.
The crash occurred on Friday when the aircraft, flown by Indian Air Force pilot Wing Commander Namansh Syal, went down during a low-level manoeuvre. The Tejas lost altitude, struck the ground and erupted in flames. Wing Commander Syal lost his life. HAL expressed deep condolences and acknowledged his service and contribution to the nation.
Thick black smoke was seen rising from the Dubai World Central airfield moments after the crash. This is the second Tejas accident in 20 months. The previous incident took place in March last year near Jaisalmer, though the pilot ejected safely on that occasion.
The Tejas programme began in 1984 and secured airworthiness clearance in 2011. The aircraft entered IAF service in 2016, marking a significant milestone in India’s indigenous fighter jet development. Since its inception, the programme has been a core component of HAL’s defence manufacturing portfolio.
HAL continues to hold major orders for the fighter. In 2021, the company signed a ₹480 billion contract for 83 Tejas Mk-1A jets. This was followed by additional approvals in 2023, including an in-principle nod for 97 more aircraft. However, the Dubai crash has heightened investor caution despite the long-term prospects.
HAL’s stock was trading at ₹4435.00 as of 10:36 AM on 24 November 2025. The price was down 3.48% from the previous close of ₹4595.00, though slightly above the opening price of ₹4425.00. The intra-day movement ranged between ₹4405.00 and ₹4490.00. Trading remained subdued, with a market capitalisation of ₹2.96 trillion and turnover of ₹6.3597 billion on volumes of 1.43 million shares.
