New Delhi, Aug 2026: Larsen & Toubro (L&T) is projecting a sharp expansion of its drones and unmanned aerial systems (UAS) business, with the company expecting revenues from the segment to triple over the next five years as it increases production capacity and looks to establish a stronger presence in global markets, Reuters reported.
The engineering and technology major is preparing to step up capital expenditure to support the expansion, with a particular focus on increasing manufacturing capabilities to meet rising demand in India’s rapidly growing unmanned aerial vehicle (UAV) market.
L&T’s Precision Engineering and Systems division, which houses its drone and UAS operations, currently contributes around 3 per cent to the company’s overall revenue. The company believes the business has considerable potential to scale, moving beyond its predominantly domestic operations and competing for opportunities in international markets.
Arun Ramchandani, who heads the Precision Engineering and Systems division, said at an event in Bengaluru that L&T had initially concentrated on developing and manufacturing products domestically but was now preparing to take its capabilities global.
The company also showcased two indigenously developed systems, the “Vedh MK-1” and “Chanakya”, at the event. The products highlight L&T’s efforts to strengthen its role in India’s defence technology ecosystem and develop locally designed solutions for military applications.
The global drone industry is expected to witness substantial growth over the coming decade. According to estimates by IMARC Group, the global drone market could expand from $33.9 billion in 2025 to $79.1 billion by 2034, representing a compound annual growth rate of 9.89 per cent.
L&T intends to capture a portion of this expanding market by increasing its production capabilities and investing in supporting infrastructure. The company is also developing new electronics manufacturing facilities, partly to meet its internal requirements and strengthen its broader defence manufacturing ecosystem.
Ramchandani said L&T’s focus on unmanned systems was closely aligned with the rapid expansion of India’s UAV sector. The domestic market is projected to reach $3.2 billion by 2030, supported by government initiatives promoting indigenous defence production, technological development and greater self-reliance in military equipment.
Jambunathan, who heads the unmanned aerial systems and aeronautics business within the Precision Engineering and Systems division, said the company was preparing to deliver 100 new “Teer” drones to the Indian Air Force.
Production of the systems is already underway, reflecting L&T’s efforts to meet the operational requirements of India’s armed forces while simultaneously developing capabilities for international markets.
The company’s strategy combines two objectives: strengthening India’s indigenous defence manufacturing capabilities and building a globally competitive drone business.
With increasing military demand for unmanned platforms, growing government support for domestic defence production and expanding international opportunities, L&T aims to transform its drone division into a significant revenue contributor over the next five years.
(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
