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Larsen & Toubro expects revenue from its Precision Engineering and Systems division, which houses its drones and unmanned aerial systems business, to triple over the next five years as it expands capacity and targets global opportunities in defence technology.
The division currently contributes about 3% to L&T’s overall revenue. The company reported revenue from operations of Rs 2.86 lakh crore for the year ended March 31, 2026.
“We have been building locally, now we can go global, and we would like this to scale up,” said Arun Ramchandani, head of L&T’s Precision Engineering and Systems division, at an event in Bengaluru.
L&T showcased two indigenously developed platforms – Vedh Mk-1 and Chanakya – at the event on Friday. It also brought together 21 drone startups to explore technology partnerships and co-development opportunities.
The company plans to step up capital expenditure to expand production capacity, with a major share expected to go towards new electronics manufacturing facilities for its own requirements, Ramchandani said.
The expansion reflects L&T’s effort to move beyond conventional defence manufacturing into electronics, autonomous systems and advanced engineering solutions.
The company also expects to deliver 100 additional Teer drones to the Indian Air Force, with production already underway, said Jambunathan, Head of the Unmanned Aerial Systems and Aeronautics business at Precision Engineering and Systems.
Vedh Mk-1 is a high-altitude hybrid VTOL remotely piloted aircraft designed for operations in difficult terrain. The high-altitude tactical UAS operates with an impressive range of over 100 kilometers and a flight endurance exceeding six hours, capable of taking off from altitudes of 4,000 meters above mean sea level with GPS anti-jamming and anti-spoofing.
Chanakya is a mission-autonomy framework that allows unmanned aerial, ground, surface and underwater platforms to coordinate through decentralised onboard intelligence.
The push comes as India’s UAV market expands on the back of rising military demand and government support. The global drone market is projected to grow from $33.9 billion in 2025 to $79.1 billion by 2034, according to IMARC Group.
Team BharatShakti
