HAL Share Price Rises 1% as Citi and Goldman Sachs Stick With Buy Calls, See Up to 27% Upside

HAL share price gained 1.11 percent to Rs 4,853.80 after global brokerages Citi and Goldman Sachs both retained their Buy ratings on the defence major, pointing to improving execution and easing supply constraints as the key drivers of their continued optimism.

Citi has kept its target price at Rs 6,175, implying upside of roughly 27 percent from current levels, while Goldman Sachs has set a target of Rs 5,870, and CLSA has maintained an Accumulate rating with a target of Rs 5,481, together spanning a target range that implies upside of between roughly 13 and 27 percent.

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Why Brokerages Are Focused on Easing Supply Constraints

The central thesis across all three brokerage notes centres on HAL's historically largest execution bottleneck: the supply of GE F404 engines used in its Tejas Light Combat Aircraft programme. With engine deliveries resuming and a recent contract signed for an additional 113 F404-GE-IN20 engines, brokerages see this constraint easing meaningfully, which directly de-risks the company's revenue trajectory for the next two fiscal years.

Goldman Sachs specifically said investor focus is now expected to shift toward execution and the conversion of HAL's large order backlog into recognised revenue, a transition that matters because HAL's stock has historically been driven more by order announcements than by the pace of actual deliveries against that backlog.

Brokerage	Rating	Target Price (Rs)
Citi	Buy	6,175
Goldman Sachs	Buy	5,870
CLSA	Accumulate	5,481

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The Scale of HAL's Order Backlog

HAL's order backlog has been estimated at between roughly Rs 2.3 trillion and Rs 2.5 trillion by various brokerages, representing several times the company's annual sales and giving it multi-year revenue visibility, provided execution keeps pace with the order intake.

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With the Tejas Mk1A programme central to this backlog, at 83 aircraft on order and a further 97 under discussion that could take the total to 180 units, the pace of engine supply and aircraft delivery over the coming quarters is likely to remain the single most closely watched operational metric for the stock.

How HAL's Stock Has Performed Against the Market

HAL has gained roughly 10.30 percent so far in 2026, outperforming the broader market, even as the stock has declined nearly 3 percent over the past month and around 1.10 percent over the past week, reflecting some recent consolidation after a stronger earlier run.

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The stock remains 5.75 percent below its 52-week high of Rs 5,149.90, touched on August 17, and well above its 52-week low of Rs 3,479.10 from March 30, a range that illustrates the scale of the rally HAL has already delivered over the past year even before accounting for the further upside brokerages are currently projecting.

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Conclusion

Citi, Goldman Sachs and CLSA's continued Buy and Accumulate ratings on HAL, with targets implying up to 27 percent upside, rest largely on the view that easing GE engine supply constraints will let the company finally convert its massive order backlog into recognised revenue. Investors should track the pace of actual Tejas Mk1A deliveries over the coming quarters as the key confirming signal, and should consult a SEBI-registered investment adviser before making investment decisions.

FAQs

What are Citi and Goldman Sachs' target prices for HAL?

Ans. Citi has a target price of Rs 6,175 and Goldman Sachs has a target of Rs 5,870, both with Buy ratings; CLSA has an Accumulate rating with a target of Rs 5,481.

Why did the HAL share price rise today?

Ans. HAL share price rose 1.11 percent after Citi and Goldman Sachs retained their Buy ratings, citing improving execution and easing supply constraints.

What was HAL's biggest execution bottleneck?

Ans. The supply of GE F404 engines used in the Tejas Light Combat Aircraft programme has been HAL's most significant execution constraint, though brokerages say this is now easing.

How large is HAL's order backlog?

Ans. HAL's order backlog has been estimated at between roughly Rs 2.3 trillion and Rs 2.5 trillion by various brokerages.

What is HAL's 52-week high and low?

Ans. HAL's 52-week high is Rs 5,149.90, touched on August 17, and its 52-week low is Rs 3,479.10, touched on March 30.

How has HAL performed year-to-date in 2026?

Ans. HAL has gained roughly 10.30 percent so far in 2026, though it has declined nearly 3 percent over the past month amid some recent consolidation.