Larsen and Toubro has projected a significant expansion in its drone and unmanned aerial systems business, with expectations that revenue from this unit will triple over the next five years, Reuters reported.

The company is preparing to increase capital expenditure to support this growth, focusing on boosting production capacity in line with India’s rapidly expanding UAV market.

The Precision Engineering and Systems division, which houses the drone operations, currently contributes about 3% to L&T’s overall revenue. For the financial year ending 31 March 2026, L&T reported revenue from operations of ₹3,004 Crores, equivalent to $30.04 billion.

The company believes that its drone business can scale up considerably, moving from a primarily domestic focus to establishing a stronger global presence.

Arun Ramchandani, head of the Precision Engineering and Systems unit, stated at an event in Bengaluru that L&T has been building locally but now intends to go global.

At the same event, the company showcased two indigenously developed products, the “Vedh MK-1” and “Chanakya,” underlining its commitment to strengthening India’s defence technology ecosystem.

The global drone market is forecast to more than double, rising from $33.9 billion in 2025 to $79.1 billion by 2034, with a compound annual growth rate of 9.89%, according to IMARC Group. L&T aims to capture a share of this growth by expanding its production capabilities, particularly through new electronics manufacturing facilities designed to meet its own requirements.

Ramchandani emphasised that the company’s focus on drones is aligned with the rapid growth of India’s UAV market, which is projected to reach $3.2 billion by 2030. This expansion is expected to be driven by government initiatives supporting indigenous defence manufacturing and technological innovation.

Jambunathan, who heads the unmanned aerial systems and aeronautics business within the Precision Engineering and Systems division, confirmed that L&T is preparing to deliver 100 new “Teer” drones to the Indian Air Force.

Production is already underway, reflecting the company’s commitment to meeting the operational needs of India’s armed forces while simultaneously positioning itself as a global player in defence technology.

The company’s strategy highlights a dual focus: strengthening India’s indigenous defence capabilities while also seeking to establish a competitive presence in the international drone market. This approach underscores L&T’s ambition to transform its drone division into a major revenue driver within the next five years.

Agencies