New Delhi: The
shares of Hindustan Aeronautics Ltd (HAL) witnessed a sharp decline in trading on Monday morning (November 24, 2025)m following the news of the crash of a HAL-made Tejas fighter jet and the death of an IAF officer at the Dubai Air Show last week. The
stock fell nearly 9 percent to Rs 4,205.25 at the time of writing this article, which is the lowest level in the last seven months. However, it also saw a slight recovery after half an hour of decline.
Weakness in Defence Stocks, Nifty Defence Index slips
Besides HAL, shares of other defence segments were under pressure on Monday. Stocks like Data Patterns, GRSE, Zen Tech, Paras Defence, BEML, Cochin Shipyard were down. Due to this, the Nifty Defense index was down about 1.5 percent in morning trading.
Buy Rating on HAL shares
Despite the accident, the brokerage house Elara Capital was positive on HAL stocks.
Elara Capital's opinion: Buy
Upside potential: about 24 percent
The accident will not have any major impact on the company's orders or delivery timeline, the brokerage said in its report. However, it also said that some delays are possible in the export orders of the Tejas Mk 1A.
On the afternoon of 21 November, the Tejas fighter jet crashed while performing tricks at the Dubai Air Show. It was a single-seat Light Combat Aircraft (LCA), which went up in flames as soon as it fell to the ground. Black smoke was seen rising above Al Maktoum International Airport and the rescue teams were immediately sent to the spot. The IAF confirmed that the pilot died in the accident. The Air Force said that a Court of Inquiry is being set up to find out the cause of the accident.
HAL's Tejas is a single-engine, 4.5 generation multirole combat aircraft developed jointly by the Aeronautical Development Agency (ADA) and HAL. This incident is the second accident involving Tejas in the last two years. Earlier in March 2024, a Tejas jet crashed in Jaisalmer, Rajasthan, which was the first accident of this fighter jet after the first flight in 2001.
