HAL Annual Report 2025-26: Engines, Tejas, CATS & More

While the delayed delivery of the Tejas Mk1A has dominated headlines over the past year, Hindustan Aeronautics Limited's (HAL) Annual Report for FY 2025–26 reveals a much broader picture of the company's progress. Beyond fighter production, the report highlights advancements in aero-engine testing, helicopter programmes, indigenous upgrades, autonomous combat systems, manufacturing infrastructure and research & development.

The report underscores HAL's dual responsibility—meeting the Indian Armed Forces' immediate operational requirements while investing in the technologies and industrial capabilities that will underpin India's future aerospace ecosystem. From extending the service life of the AL-31FP engine to expanding helicopter production capacity and progressing the Combat Air Teaming System (CATS), the report provides insight into several strategic programmes that often receive far less public attention than fighter aircraft deliveries.

Tejas Mk1A Delays Continue Despite Ongoing Development

The Tejas Mk1A programme remains HAL's most closely watched project, and the annual report confirms that while development and integration activities have continued, deliveries remain significantly behind schedule.

Under the original production contract, HAL was expected to deliver 35 Tejas Mk1A fighters by the end of FY 2025–26, comprising three aircraft in FY 2023–24, sixteen in FY 2024–25 and another sixteen in FY 2025–26. However, as of the reporting date, not a single Tejas Mk1A had been officially handed over to the Indian Air Force.

The report notes that HAL has made financial provisions for potential liquidated damages associated with these delays while continuing work on aircraft modification and system integration. The company is now targeting completion of the originally scheduled deliveries by March 2027.

Despite the delays, integration of the Mk1A configuration continues with several indigenous systems, including the AESA radar, Unified Electronic Warfare Suite, Mission Computer, Digital Map Generator, Smart Multi-Function Displays, Software Defined Radio, Advanced Radio Altimeter and Combined Interrogator & Transponder, representing a significant capability enhancement over the baseline Tejas Mk1.

AL-31FP Programme Strengthens Su-30MKI Sustainment

Among the report's most important achievements is the continued strengthening of India's capability to support the Indian Air Force's Su-30MKI fleet.

During the year, HAL inaugurated PRAJWALAN, India's first indigenous high-thrust engine test bed for the AL-31FP engine at its Koraput Division. The facility provides a domestic capability for testing and validating high-thrust fighter engines, reducing dependence on overseas infrastructure for engine evaluation and supporting long-term sustainment of the Su-30MKI fleet.

Equally significant, HAL secured RCMA approval extending the Total Technical Life (TTL) of the AL-31FP engine from 2,000 hours to 2,500 hours. The company also delivered the first overhauled engine with the extended life standard to the Indian Air Force in January 2026. This milestone directly enhances fleet availability while reducing life-cycle costs for India's largest fighter fleet.

Indigenous Engine Programmes Continue to Mature

HAL also reported continued progress on its indigenous engine development programmes.

The HTFE-25 turbofan engine, designed for advanced jet trainers, business jets and large unmanned aerial vehicles, continues qualification testing. According to the report, two core engines and one complete engine have been manufactured, while the core engine has successfully achieved 99.5 percent rotational speed, marking another important technical milestone in the programme.

Development also continues on the HTSE-1200 turboshaft engine for helicopters in the three-to-six-tonne class. HAL has completed two prototype engines in jet and power configurations, successfully manufactured several critical components through additive manufacturing and tested the engine up to 650 kW. The report also confirms that development of an indigenous Full Authority Digital Engine Control (FADEC) system has commenced, an essential technology for modern helicopter propulsion.

Combat Aircraft Modernisation Advances

Alongside the Tejas programme, HAL continued work on modernising several frontline combat aircraft.

The company remains the Lead System Integrator for the Su-30MKI Upgrade Programme, which aims to substantially enhance the aircraft's combat capability through indigenous avionics, mission systems and sensors. The upgrade includes a new mission computer, AESA radar integration, indigenous electronic warfare suite, electro-optical and infrared systems, larger cockpit displays, sensor fusion and network-centric warfare capability. During the reporting period, Phase-II flight trials for unified weapons integration were successfully completed.

HAL also completed carriage, handling and flight evaluation trials for the Spice-1000 precision-guided munition on the Mirage 2000 fleet, while the Jaguar AP (Air Producer) engine received CEMILAC Type Approval during the year.

Another notable achievement was the successful maiden flight of the indigenous Mission Computing & Display Suite (MCDS) aboard the Dhruv Wheeled Demo Maritime helicopter, further demonstrating HAL's progress in indigenous avionics development.

Helicopter Programmes Expand Across Multiple Fronts

HAL's rotary-wing portfolio continued to record steady progress during FY 2025–26.

The Light Combat Helicopter (LCH) Prachand completed its maiden flight equipped with an indigenous Automatic Flight Control System (AFCS) and Integrated Air Data System (IADS). The company is currently executing production of seven new helicopters and four upgraded aircraft, while simultaneously establishing an additional production line at the Tumakuru Helicopter Complex, recognised as Asia's largest helicopter manufacturing facility.

The Light Utility Helicopter (LUH) programme also advanced following the Letters of Intent issued by the Indian Army and Indian Air Force. HAL has manufactured all helicopters planned under the Limited Series Production phase, with mission equipment integration and flight evaluation continuing alongside development of the Automatic Flight Control System, Emergency Floatation System, Helmet Mounted Display System and autorotation capability.

Meanwhile, preliminary design studies for the Indian Multi Role Helicopter (IMRH) have been completed. HAL will lead development of the airframe, transmission, avionics, flight control and mission systems, while engine development will be undertaken through SAFHAL Helicopter Engines Pvt. Ltd. The naval Deck-Based Multi Role Helicopter (DBMRH) variant is progressing in parallel.

Combat Air Teaming System Moves Closer to Flight

Among HAL's most ambitious future programmes is the Combat Air Teaming System (CATS), designed to enable manned-unmanned collaborative combat operations.

The report confirms continued development across the CATS family, including CATS Warrior, CATS Hunter, CATS ALFA, CATS MAX and CATS OMCA. During the reporting period, ground engine runs of the full-scale CATS Warrior demonstrator were successfully completed, while ground runs, taxi trials and flight testing are planned during FY 2026–27.

HAL also continues evaluation of its Rotary Unmanned Aerial Vehicle (RUAV), a Vertical Take-Off and Landing (VTOL) platform intended for cargo transportation and intelligence, surveillance and reconnaissance missions in high-altitude environments.

Strengthening India's Aerospace Industrial Base

Beyond aircraft programmes, HAL continued investing in strategic industrial infrastructure.

The company signed a Memorandum of Understanding with MIDHANI to establish a Strategic Metal Bank, aimed at ensuring long-term availability of critical aerospace materials. It also partnered with Yantra India Limited to establish a 10,000-ton extrusion press, a major capability for manufacturing large aerospace structural components within India.

HAL further expanded its international industrial footprint by signing an agreement with Safran Aircraft Engines for industrialisation and manufacture of rotating parts for the LEAP engine family, strengthening India's participation in the global aerospace supply chain.

Innovation and Research Remain Central

HAL maintained a strong focus on research and development throughout FY 2025–26, investing ₹2,794 crore, equivalent to 8.79 percent of annual turnover, into R&D activities. An additional ₹945 crore was transferred to the company's R&D Reserve.

Innovation also remained robust, with HAL filing 223 new Intellectual Property Rights (IPR) applications during the year and securing 84 grants. The company's cumulative portfolio now stands at 2,842 IPR filings, of which 1,226 have been granted, reflecting sustained investment in indigenous technologies across aerospace and defence.

Analysis

HAL's FY 2025–26 Annual Report reflects a company balancing immediate production challenges with long-term capability development. The delay in Tejas Mk1A deliveries remains a significant concern and will continue to attract scrutiny until production stabilises. However, the report also demonstrates substantial progress across areas that are equally critical to India's aerospace future.

The extension of the AL-31FP engine's certified life to 2,500 hours, establishment of the PRAJWALAN high-thrust engine test facility, continued progress on the HTFE-25 and HTSE-1200 engine programmes, expansion of helicopter production, advancement of the CATS ecosystem and sustained investment in aerospace manufacturing infrastructure collectively illustrate HAL's broader strategic direction.

Rather than focusing solely on aircraft production, HAL is steadily building the testing infrastructure, industrial capacity, indigenous technologies and system integration expertise required to support India's next generation of combat aircraft, helicopters and autonomous systems. While execution on flagship programmes such as the Tejas Mk1A will remain the benchmark for operational success, the annual report indicates that the foundations of a more self-reliant aerospace ecosystem continue to strengthen across multiple domains.