Hindustan Aeronautics Ltd (HAL) on Monday termed the Tejas fighter jet crash in Dubai an “isolated occurrence” and said that it would not affect the company's business operations or future deliveries.
“We would like to bring to your attention that the recent incident during the aerial display at the Dubai Air Show is an isolated occurrence arising out of exceptional circumstances. We would like to assure that there is no impact on the Company’s business operations, financial performance or its future deliveries. The Company is extending its full support and cooperation to the agencies conducting the investigation. The Company will continue to keep the stakeholders informed of any material developments,” the state-run aerospace behemoth said in a statement.
Despite the clarification, shares of the company crashed more than 3% on Monday, taking the total two-session fall to 6%. HAL shares closed 3.35% lower on Monday at Rs 4,440.90 apiece on the NSE.
Analysts had earlier stated that HAL will face selling pressure after the fatal crash involving a Tejas aircraft at the Dubai Air Show on Friday.
“When a frontline indigenous fighter suffers an accident on a global stage, it triggers immediate questions on reliability, export readiness, and operational safety. Even though the government clarified that earlier concerns around oil leakage were unfounded and unrelated, the incident still places HAL under heightened scrutiny at a time when expectations are exceptionally high,” said Harshal Dasani, Business Head, INVasset PMS.
The Dubai incident marks the second crash involving a Tejas aircraft in less than two years. The first occurred in March 2024 near Jaisalmer, Rajasthan, when a fighter jet crashed while returning from a tri-services military exercise in the Pokhran desert.