HAL's share price initially declined but later rose on Tuesday despite JPMorgan's positive outlook on the firm's production capabilities.
JPMorgan highlighted HAL's progress and future initiatives, including the upcoming delivery of the second engine for LCA Mk1A from GE Aerospace by the end of July.
HAL has been working on enhancing its production capabilities to meet delivery commitments, with plans to produce 12 LCA Mk1A aircraft in FY26 and have the LCA Mk2 prototype ready by March 2026.
Negotiations for a technology transfer to manufacture F-414 engines for the Mk2 variant are nearing completion, with HAL expecting the contract to be signed in three months. Despite the positive developments, the market's reaction to HAL's stock has been mixed.