L&T's Drone Division Targets Threefold Revenue Growth in Five Years

Larsen & Toubro's Precision Engineering and Systems division expects revenue to triple over the next five years as the company expands capacity in India's defence technology sector, a senior executive announced at the Manthan: Drone Demo Day in Bengaluru on 7 August 2026. The division, which currently accounts for approximately 3 per cent of L&T's overall revenue from operations of Rs 2.86 trillion (USD 30.04 billion) for the fiscal year ended March 2026, showcased two indigenously developed products - the Vedh Mk1 drone and the Chanakya autonomy platform. Precision Engineering and Systems unit head Arun Ramchandani stated: "We have been building locally, now we can go global, and we would like this to scale up."

The strategic significance lies in L&T's commitment to scaling indigenous unmanned aerial systems production. The company expects to deliver 100 new Teer drones to the Indian Air Force, with production already underway. Ramchandani indicated that capital spending will increase to expand production capacity, with most investment directed toward new electronics manufacturing facilities for L&T's own needs. India's UAV market is projected to reach approximately USD 3.2 billion by 2030, supported by government initiatives.

The dependency frame is instructive. L&T's Precision Engineering division is transitioning from serving internal project needs - precision manufacturing for its construction and engineering business - to becoming a standalone defence technology provider with export ambitions. This mirrors a broader pattern among Indian conglomerates such as Reliance, Adani and Tata, where defence manufacturing is becoming a distinct growth vertical rather than a captive capability. The company's bet on drones, rather than traditional platforms, positions it within the fastest-growing segment of India's defence exports, which have climbed to record levels.

The test to watch is whether L&T's Precision Engineering division achieves its stated revenue trajectory, and whether the Vedh Mk1 and Chanakya systems secure domestic orders beyond the Teer drone programme. The company's decision to invest in dedicated electronics manufacturing facilities, rather than relying on existing infrastructure, indicates a long-term commitment that could position it as a key supplier in India's unmanned systems value chain, potentially complementing or competing with specialised drone startups and Defence Public Sector Undertakings.