Hindustan Aeronautics Limited (HAL) saw its stock fall 2.62% after a Tejas fighter jet tragically crashed during a live aerial display at the Dubai Airshow.
The incident, which unfolded in front of global aviation leaders, immediately impacted investor confidence and raised fresh concerns about the reliability of India’s flagship lightweight combat aircraft.
According to eyewitnesses at the venue, the jet began losing altitude moments after initiating its maneuver sequence. It then descended rapidly before crashing near the runway, erupting in flames.
Emergency teams rushed to the scene, and airshow activities were temporarily halted to secure the area and begin preliminary investigations.
The crash marks a significant setback for India’s defense aviation ambitions, especially as HAL has been positioning Tejas internationally as a competitive, locally produced fighter jet.
The Dubai Airshow, one of the world’s biggest aerospace exhibitions, was expected to help boost the aircraft’s global profile, making the accident particularly damaging for HAL’s export prospects.
This incident also marks the second crash involving a Tejas jet since it was introduced into the Indian Air Force fleet in 2015.
The first incident occurred during a training mission in Rajasthan, and although the aircraft has completed numerous successful operational flights since, repeated accidents often trigger deeper reviews of design, maintenance, and training protocols.
Despite the stock dip, analysts believe HAL’s long-term fundamentals remain strong, but the company will likely face heightened scrutiny from both domestic and international stakeholders.
Official investigation reports are expected to shed more light on the cause of the crash and the steps needed to restore confidence in the Tejas program.
