Tejas crash dampens HAL’s momentum:At ₹2.97 lakh crore in market capitalisation, its value is below BEL’s for the first time in two years

In an unexpected shift within India’s defence manufacturing arena, Hindustan Aeronautics Ltd (HAL) has slipped behind Bharat Electronics Ltd (BEL) in market capitalisation—something that hasn’t happened since 2022. HAL’s market value dropped to ₹2.97 lakh crore on Monday, weighed down by a 3.17% slide in its share price to ₹4,449.15. BEL also saw a mild dip of 1.26%, closing at ₹410.95, yet it still held a stronger market cap of ₹3 lakh crore. Should this pattern persist until market close, it would represent HAL’s first drop below BEL in market valuation since September 5, 2022, BT reported citing market analysts. This reversal has been building for months: BEL has soared 40% in 2025, while HAL has managed only a 7% rise, burdened by concerns following a recent mishap involving its flagship Tejas fighter jet. Tejas Crash Dampens Momentum The Tejas programme, India’s long-promised symbol of aerospace self-reliance, has hit turbulence. At the Dubai Airshow 2025, a Tejas fighter jet crashed during a live demonstration on Nov 21, right in front of international defence delegations. According to Reuters, the incident has clouded India’s ambitions to pitch Tejas as an export-ready combat jet. The mishap unfolded at a geopolitically charged event where India and Pakistan both showcased their air power. India also honoured Wing Commander Namansh Syal, who lost his life in the crash. Defence analysts say such a high-profile accident could hurt Tejas’ export prospects, particularly for a programme already scrutinised over its slow development spanning four decades. Crashes at Major Airshows Are Rare—but Not Unheard Of Dubai hosts one of the world’s biggest aviation showcases, and major accidents there are unusual. Reuters recalled rare but notable crashes at Paris Airshow in the past, including a Sukhoi Su-30 in 1999 and a MiG-29 ten years earlier. In both cases, the pilots survived—and India later went on to buy the jets. Tejas Still Faces Production Bottlenecks Even as India prepares to retire its aging MiG-21 fleet, Tejas production hasn’t fully caught up. HAL reportedly has orders for 180 Tejas Mk-1A aircraft, but deliveries have been delayed due to engine supply constraints from GE Aerospace, according to Reuters. The programme, conceived in the 1980s, continues its long, uneven journey, now complicated further by the Dubai crash and the shifting investor sentiment it triggered.