The winding-up process for the non-performing entity had begun in March 2024, and the latest order formally brings the venture to a close.
Infotech HAL was jointly held by HAL and Cyient, with each company owning a 50% stake. The dissolution is not expected to have any material bearing on HAL’s ongoing defence programmes or its active balance sheet, given that the joint venture had remained dormant.
The development comes at a time when HAL continues to remain firmly in focus amid the government’s push to deepen defence indigenisation.
On August 18, the Department of Defence Production under the Ministry of Defence notified the sixth Positive Indigenisation List, covering 405 strategically important defence items with an estimated business potential of ₹3,070 crore.
The move is aimed at reducing dependence on imports and creating greater opportunities for domestic defence manufacturers, including major players such as HAL.
Separately, the Defence Ministry has floated a global Request for Proposal (RFP) for 60 multirole transport aircraft for the Indian Air Force, in a programme estimated to be worth around ₹1 lakh crore, or $10 billion. The tender has been issued to Indian companies including HAL, Tata and Mahindra, with defence officials saying Indian firms will lead the programme in partnership with global original equipment manufacturers.
HAL’s recent financial performance has also kept the stock in the spotlight. The Bengaluru-based defence PSU reported a stronger-than-expected June quarter, beating CNBC-TV18 estimates on profit, revenue and EBITDA.
Net profit rose 14.7% year-on-year to ₹1,580 crore, against the CNBC-TV18 poll estimate of ₹1,493 crore. Revenue increased 14.4% to ₹5,515 crore, ahead of the ₹5,268-crore estimate.
Operating performance was stronger as well. EBITDA rose 18.8% to ₹1,529 crore, compared with the ₹1,358 crore expected by the poll. EBITDA margin expanded to 27.7% from 26.6% a year earlier, also beating the Street estimate of 25.8%.
Shares of Hindustan Aeronautics closed at ₹4,977 on Thursday, down 0.8% on the NSE.
