India is experiencing a quiet transformation in its skies. From drones delivering medicines and mapping terrains to advanced fighters and radars securing its borders, the country is swiftly evolving from a hardware assembler to a global aerospace manufacturing hub.

This surge is driven by precision engineering — the microscopic accuracy in propellers, sensors, flight systems, and radar modules that enable machines to perform flawlessly under demanding conditions.

At the heart of this rise are five companies that define India’s growing dominance in drones, radars, and jet engineering — Hindustan Aeronautics, Bharat Electronics, Bharat Forge, Larsen & Toubro, and Zen Technologies. Each firm contributes a unique component to the country’s expanding aerospace ecosystem, combining innovation, scale, and export readiness.

Hindustan Aeronautics: Expanding Horizons In Airframes And Jets

Hindustan Aeronautics (HAL) remains the cornerstone of India’s aerospace ambitions. With revenue of ₹30,105 crore in FY25 and an outstanding order backlog exceeding ₹1.9 lakh crore, HAL is strengthening its role in precision aircraft and engine manufacturing.

Recent milestones underscore its transformation. The company inaugurated new assembly lines for the TEJAS MK-1A and HTT-40 trainer aircraft in Nashik, aligning with the Ministry of Defence’s ₹62,370 crore order for 97 TEJAS MK-1A fighters — among the largest indigenous aircraft contracts in Indian history. HAL has also inked an MoU with Russia’s United Aircraft Corporation to manufacture the SJ-100 regional jet domestically, marking its entry into civil-airframe production.

With expanded facilities in Bangalore, Nashik, and Tumkur, HAL is positioned as not just a defence manufacturer but an export-ready precision aerospace leader. Over the past year, it is supported by a strong production pipeline and investment plans worth up to ₹15,000 crore.

Bharat Electronics: Mastering Radar, Avionics, And Unmanned Systems

Established in 1954, Bharat Electronics Ltd (BEL) has evolved into a precision-engineering hub for radar and electronic-warfare systems. With an order book of about ₹75,600 crore, BEL remains central to large strategic programmes such as Project Kusha — DRDO’s long-range radar and command system.

Recent inflows of ₹14,750 crore in the first half of FY26 highlight BEL’s robust momentum. The company is expanding its Defence System Integration Complex in Andhra Pradesh to streamline production of missile, radar, and drone systems, a step that significantly enhances its in-house capability for high-precision assembly.

BEL’s export focus is also gaining traction. Its overseas portfolio now includes airborne radars and drone subsystems supplied to markets in Southeast Asia, Africa, and Europe.

Exports currently make up 3% of turnover but are expected to reach 10% within three years. BEL exemplifies stability, growth, and technical leadership in India’s defence electronics sector.

Bharat Forge: Transition From Forgings Giant To Aerospace Integrator

Bharat Forge (BFL) is rapidly repositioning itself beyond automotive forgings to become a precision-engineering powerhouse in defence and aerospace. Its consolidated order book stands at ₹9,467 crore, bolstered by fresh orders worth ₹559 crore in the first half of FY26.

Through its subsidiary, Kalyani Strategic Systems Ltd., BFL now focuses exclusively on high-value defence manufacturing, ranging from missile and artillery components to UAV and aero-engine parts. The company is de-risking its portfolio by investing heavily in advanced precision applications and defence castings, supported by a solid balance sheet with low leverage and a cash reserve of ₹2,309 crore.

Despite a sluggish international automotive market, Bharat Forge’s defence and aerospace divisions are sustaining its profitability. The firm’s steady pivot towards advanced precision manufacturing signals a strategic move from cyclical auto demand towards long-term aerospace growth.

Larsen & Toubro: Engineering Scale Meets Aerospace Innovation

Larsen & Toubro (L&T), the engineering conglomerate, is making deep inroads into precision aerospace and high-technology manufacturing. Its Precision Engineering & Systems (PES) division reported a robust order book worth ₹32,800 crore as of September 2025, with significant growth from defence-related projects.

A consortium between L&T and Bharat Electronics has been formed to contribute to the Advanced Medium Combat Aircraft programme, including prototype development and system integration. The PES division is also diversifying into radar components, drone systems, and aerospace tools, with a production base expansion underway in Coimbatore.

Hi-Tech Manufacturing revenues grew by 33% year-on-year in Q2 FY26, driven by improved execution and a promising defence pipeline valued at ₹31,500 crore.

Zen Technologies: From Simulation To Autonomous Defence Leader

Zen Technologies, founded in 1996, has quietly become a pioneer in combat training and counter-drone technologies. With an order book of ₹675 crore — including ₹554 crore in domestic and ₹120 crore in export contracts — Zen is strengthening its presence across the land, air, and naval segments.

Its acquisitions of Vector Technics, TISA Aerospace, Bhairav Robotics, and Applied Research International have expanded its technological reach from UAV propulsion to naval simulation and robotics. Two new MoD contracts worth ₹289 crore for anti-drone systems further enhance its credentials in counter-UAS operations.

Zen’s liquidity of over ₹1,100 crore and strong execution pipeline position it for renewed growth. The company is evolving into a diversified aerospace engineering enterprise with cutting-edge capabilities across simulation, precision systems, and autonomous defence platforms.

Conclusion

The challenge now lies in determining how much of this optimism is already priced in — and which companies can translate technical innovation into sustained shareholder value.

IDN (With Agency Inputs)