LCA Tejas Mk-1A Delivery Gets Delayed Due To Supply Chain Crisis

Despite Hindustan Aeronautics (HAL)’s efforts, challenges persist, especially concerning the supply of F404 engines from the US-based GE Aerospace. These engines, essential for powering the LCA Mk-1A jets, have reportedly faced a delay of about 10 months due to supply chain issues.

A recent media report highlighted market analysts' concerns over the delays in Tejas Mk1A jet deliveries, attributing these delays primarily to supply chain disruptions at GE Aerospace. However, the analysts remain positive about HAL's stock performance despite these challenges.

HAL's management anticipates that the delivery of Tejas Mk1A jets will begin in the September quarter of FY25. According to a Nomura India report, the supply chain issues at GE Aerospace have specifically delayed the F404 engine deliveries, which were initially planned to be supplied at a rate of 16 engines per year starting FY23. As of August 2024, no engines have been delivered, causing a setback in HAL's LCA Mk1A production schedule.

Consequently, Nomura India has lowered its delivery estimate for the LCA Mk1A from 14 to 10 jets in FY25. Similarly, Elara Securities has slightly reduced its forecast for Tejas Mk1A deliveries in FY25 from 14 to 11 jets. Additionally, the certification of new systems for the LCA Mk1A is still pending, adding further complexity to the aircraft's delivery timeline.