Hindustan Aeronautics Limited (HAL share price) faced heavy selling on February 5, 2026. The stock hit an intraday low of ₹3,952 before closing around ₹3,959 on NSE. This comes after a 5-6% fall the previous day, pushing the total drop to 11-12% over two trading sessions.
Investors are worried. The main reason? Reports say HAL missed out on India’s big fifth-generation fighter jet project — the Advanced Medium Combat Aircraft (AMCA) programme. Private companies like Larsen & Toubro, Tata Advanced Systems, and Bharat Forge got shortlisted instead.
This hurts because AMCA is one of India’s largest defence projects ever. For years, HAL enjoyed almost full control over military aircraft making. Losing this could mean the end of that strong position.
Why HAL Share Price Is Falling – Key Reasons
- New Govt Rules Hit Hard The Ministry of Defence now focuses on quick delivery. A new rule blocks companies if their order book is more than 3 times yearly revenue. HAL’s order book sits at about 8 times revenue — seen as too big now, like a backlog stopping new big wins.
- Broker Warning Morgan Stanley turned bearish. They downgraded HAL to “Underweight” and cut the target price to ₹3,355 (from ₹5,092 earlier). They pointed to more private competition, engine import delays, and lower future earnings forecasts.
- Tejas Delivery Delay HAL said some Tejas LCA Mk1A jets are ready, but engine shortages from General Electric are slowing handovers. This adds doubt on meeting long-term targets.
After strong multibagger gains in past years, profit booking kicked in post-Union Budget 2026 — no major PSU announcements came.
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HAL Share Price Snapshot (Recent Sessions)
| Date | Open | High | Low | Close | Change |
|---|---|---|---|---|---|
| Feb 5, 2026 | 4,121 | 4,125 | 3,952 | – | -6% |
| Feb 4, 2026 | 4,410 | 4,413 | 4,097 | 4,217 | -5.7% |
(Note: Prices in ₹ on NSE; volumes high during sell-off.)
Market mood turned cautious. Traders now watch HAL’s Q3 FY26 results on February 12, 2026. That update may cover AMCA news plus any interim dividend.
HAL remains a key defence player with huge orders. But right now, HAL share price reflects real worries over growth and competition. Investors are staying alert.
Disclaimer: This content is for informational purposes only and should not be considered professional [financial/legal/medical] advice. Always seek the advice of a qualified professional before making any decisions based on this information.
Sources & References
Ventura Securities, The Economic Times
Yogesh Kolhe is a business and market news writer covering the share market, company earnings, and gold and silver price movements, with a strong focus on the automobile sector. A Mechanical Engineering graduate with 5 years of share market experience, he provides data-driven, reliable insights into market and industry trends.
