Anand Rathi Research has come up with its fortnightly defence intelligence report. The brokerage house has a Buy rating on Hindustan Aeronautics and Solar Industries. While it sees 37.66% upside in HAL on the back of deliveries of 5 Tejas Mk-1A in FY26, Solar Industries is likely to rise 46.5% over the next 12 months, as per their estimates.
Anand Rathi Research on HAL
GE Aerospace has handed over the 5th F404-IN20 jet engine to HAL for their LCA Tejas Mk1A programme. With all technical glitches being addressed, currently certifications and procedural formalities are being conducted. Anand Rathi Research has a target price of Rs 5,950 on the stock.
Now, the brokerage house sees a “very good case for deliveries of at least 5 LCA Tejas Mk-1A in FY26.” The 1st F404-IN20 engine was delivered in March 2025, 2nd engine in July 2025, 3rd
engine in September 2025, and the 4th in October 2025.
However, the deliveries for HTT-40 Basic Trainer Aircraft are impacted due to delays in TPE331-12B turboprop engines procurement from Honeywell. HAL now expects deliveries of 3 HTT-40.
Anand Rathi Research on Solar Industries
Solar Defence & Aerospace (SDAL), a subsidiary of Solar Industries, signed an agreement with CSIR-National Aerospace Laboratories (CSIR-NAL) to develop a 150 kg class of Loitering Munition UAV (LM-UAV). This programme is CSIR-NAL’s first partnership with a private company for long-range drones/loitering munitions. The brokerage has a target price of Rs 17,859 on the stock.
This LM-UAV will function as a long-range, kamikaze-style LM capable of both attack and deep-strike missions as well as ISR roles. With this LM-UAV, SDAL is stepping into the league of Harop class of long-range LMs, while the current portfolio of Nagastra-1/2 family will
address man-portable, tactical-range use cases like Warmate/ Warmate2.
“This programme would give SIIL a vertically integrated LM stack right from platoon-level portable systems to theatre range deep strike assets. We do not see any impact on FY26-28 financials,” said Anand Rathi Research.
HAL’s expected delivery of Tejas Mk-1A jets in FY26 and Solar Industries’ new agreement with CSIR-NAL to develop a long-range Loitering Munition UAV drove the brokerage’s outlook on these two stocks.