State-run Hindustan Aeronautics Ltd. (HAL) plans to increase the share of revenue from civil aviation to about 25% over the next decade, up from an estimated 5% at present, as it moves beyond its largely military-focused business model.
The plan was detailed at the Wings India 2026 show in Hyderabad, where HAL presented a 100-seat regional jet, the SJ100, and its Dhruv Next Generation (NG) twin-engine helicopter for civil use.
HAL has signed a licensing arrangement with Russia’s United Aircraft Corporation to manufacture the SJ100 regional jet in India, following a memorandum of understanding signed earlier in Moscow. HAL chairperson D.K. Sunil said the company wants a quarter of its turnover from non-military projects in 10 years as part of a diversification strategy into civil aviation.
The SJ100, a twin-engine jet in the 90–100 seat segment, is intended to serve short to medium routes that currently sit between 70-seat turboprops and 180-seat narrow-body aircraft in India’s market.
Phased Manufacturing Strategy
Instead of immediately setting up full-scale production, HAL plans to first lease about 10–20 SJ100 aircraft to domestic operators to assess performance, maintainability and ground support requirements in Indian conditions.
Domestic manufacturing is expected to start roughly three years after this initial phase, using HAL facilities at Nashik and Bengaluru and its existing supplier base to localise components and lower lifecycle costs. HAL estimates a potential Indian demand of more than 200 aircraft in this size class, driven by regional connectivity needs.
On the rotorcraft side, HAL is advancing civil certification of the Dhruv NG, a twin-engine helicopter equipped with a glass cockpit and a civil-certified engine built by HAL. Pawan Hans Ltd has ordered 10 Dhruv NG helicopters, which are slated for deployment on Oil And Natural Gas Corporation (ONGC) offshore operations from 2025–26.
Sunil projected domestic demand of about 400 helicopters in this category in the coming years, including potential customers such as Border Security Force, state governments and operators targeting tourism and high-altitude or rescue missions.
Scaling Production Capacity
HAL executives have also flagged a shortage of trained pilots as a key constraint for regional aircraft such as the Dornier 228 and plan to install a new simulator to expand pilot training for civil missions. Sunil argued that with regulatory support and funding tools such as viability gap funding, domestically built aircraft and helicopters can play a larger role in India’s regional transport network over the next decade.