L&T says unit that houses drones to see threefold revenue growth over five years
- 'We have been building locally, now we can go global, and we would like this to scale up,' Ramchandani says
BENGALURU: Larsen and Toubro expects revenue from the unit which also develops drones and unmanned aerial systems, to triple over the next five years as it expands capacity in India’s defence technology sector, a senior executive said on Friday.
The company’s Precision Engineering and Systems division currently accounts for about 3% of the construction and engineering major’s overall revenue.
L&T reported revenue from operations of 2.86 trillion rupees ($30.04 billion) for the full-year ended March 31, 2026.
“We have been building locally, now we can go global, and we would like this to scale up,” Precision Engineering and Systems unit head Arun Ramchandani said at an event in Bengaluru, where L&T showcased two indigenously developed products “Vedh Mk-1” and “Chanakya”.
The global drone market is projected to more than double to $79.1 billion by 2034 from $33.9 billion in 2025, expanding at a compound annual growth rate of 9.89%, according to market research firm IMARC Group.
India’s L&T maintains FY27 outlook on strong order inflows despite geopolitical headwinds
Ramchandani said the company will increase capital spending to expand production capacity, with most of it going toward new electronics manufacturing facilities for L&T’s own needs.
The focus on drones reflects the rapid growth of India’s UAV market, which is projected to reach about $3.2 billion by 2030, helped by government initiatives, he added.
L&T also expects to deliver 100 new “Teer” drones to the Indian Air Force and production is underway, said Jambunathan, head of the unmanned aerial systems and aeronautics business at Precision Engineering and Systems, who goes by a single name.