HDFC Defence Fund added 1 lakh shares of Hindustan Aeronautics Limited in September, taking its holding to 31.05 lakh shares from 30.05 lakh shares in August, with the stock accounting for around 12.61% of NAV.

Hindustan Aeronautics Limited is expected by ICICI Securities to report a relatively muted Q2 FY27 with 6% year-on-year revenue growth due to a higher base and delays in Tejas Mk-1A deliveries, though the brokerage retains it as a preferred pick in aerospace and defence procurement.

Hindustan Aeronautics Limited entered FY27 with a Rs 2.54 trillion order book and expects Rs 90,000 crore of fresh orders over two years, while scaling LCA, HTT-40 and Light Combat Helicopter production and planning Rs 12,000 crore capex by 2030. Management guides double-digit revenue growth with 30-31% EBITDA margins, supported by a net debt-free balance sheet, but the company faces execution delays including past General Electric engine delays, supply-chain dependence and over 90% revenue reliance on Indian defence forces.