GENERAL19 Sept 2026
Four aerospace stocks to watch as India builds its MRO industry
India cut GST (goods and services tax) on aircraft maintenance, repair and overhaul (MRO) services from 18% to 5%, and lowered IGST on imported engine parts. This helps airlines and MRO firms that earlier sent planes to Singapore and the Gulf. For investors, no pure-play listed MRO company exists yet, so exposure comes indirectly through defence names like HAL. Check each company's real maintenance revenue before investing.
Key Statutory Highlights
- GST on MRO services has been cut from 18% to 5%, and IGST on imported aircraft components and engine parts is now 5%.
- HAL's repair, overhaul and maintenance segment brings in roughly Rs 20,000 crore a year, about a third of the company's total revenue.
- Safran is putting Rs 1,300 crore into an engine MRO facility in Hyderabad, an early sign of new capacity being built.
Actionable Advice for Taxpayers / Founders:If you are looking at aerospace stocks for this MRO theme, first check how much of each company's revenue actually comes from maintenance work, and treat it as a slow, long-term story rather than a quick gain. Please speak to a registered adviser for advice suited to your own case.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: