Key defence player and Aircraft manufacturer Hindustan Aeronautics’ (HAL) is in the spotlight. While on the one hand its strong order book is seen as a big thumbs up to ‘Make In India’, the unfortunate crash of its Light Combat Aircraft (LCA) Tejas Mk1 at the Dubai Air Show on November 21 raised some concerns. However, Elara capital believes that it may not have a big impact on the Financials or order book.
“There may be sentimental impact, but we do not expect any material financial impact on its orderbook, inflows, and execution of Tejas aircraft,” it noted in its report.
HAL remains primary defence aircraft manufacturer amid rising orders: Elara Capital
The report noted that as India is expanding its defence aviation pipeline with procurement pipeline exceeding Rs 3 trillion, defence PSU, HAL remains the country’s primary aircraft manufacturer and a key beneficiary of new orders.
Tejas Mk1 crash unlikely to impact HAL orderbook: Elara Capital
The crashed aircraft was part of the Initial Operational Capability (IOC) variant, one of the first 20 jets contracted by the Indian Air Force (IAF) in 2016. These IOC variants have been in service for nine years.
To date, the IAF has already ordered 40 Tejas Mk1 aircraft and received 38 of them, including six trainers and 32 single-seat fighters.
“We do not expect news of the crash to impact the 83 + 97 orders for LCA Tejas Mk1A and its delivery schedule.However, it may delay exports.”
Tejas Mk1 may not be grounded: Elara Capital
This marked the second such incident involving the fighter in the past two years for HAL. The earlier Tejas Mk1 crash occurred in Rajasthan in 2024.
“We do not think Tejas Mk 1 aircraft will be grounded as the incident did not occur in mission mode and instead took place at an airshow,” said the Elara Capital’s report.
Fighter jet crashes not uncommon: Elara Capital
The report also highlighted that a fighter jet crash, though tragic, is not rare within global military aviation. More than seven incidents have already been reported in calendar year 2025, including two crashes of the US-made fifth-generation F-35.
The F-35 program, despite being among the world’s most advanced, has seen more than 11 crashes since 2018. The widely deployed US-made F-16 has documented around 650–700 major mishaps over its service history. Russian Su-30 jets and Chinese JF-series aircraft have also faced multiple accidents, with a recent F-7 crash reported in Dhaka in 2025.
Aviation Safety Network data shows that more than 100 aircraft have crashed at air shows and display events globally in the past decade. In one such instance this year, an F-16 of the Polish Air Force went down during an air show rehearsal.