L&T expects defence unit revenue to triple in five years
L&T's Precision Engineering and Systems unit, which makes drones, expects revenue to triple in five years as it expands capacity.
Larsen & Toubro (L&T) expects revenue from its Precision Engineering and Systems division — the unit that develops drones and unmanned aerial systems — to triple over the next five years, a senior executive said on Friday.
Arun Ramchandani, head of the division, said the company has been building locally and is now ready to scale up globally. He was speaking at an event in Bengaluru where L&T showcased two indigenously developed products, the 'Vedh Mk-1' and 'Chanakya'.
The division currently contributes about 3% of L&T's total revenue. The company reported revenue from operations of ₹2.86 trillion for the year ended March 31, 2026.
Ramchandani said L&T will increase capital spending to expand production capacity, with most of the investment going toward new electronics manufacturing facilities for the company's own needs.
The push comes as the global drone market is projected to grow from $33.9 billion in 2025 to $79.1 billion by 2034, a compound annual growth rate of 9.89%. India's UAV market is expected to reach about $3.2 billion by 2030, helped by government initiatives.
Separately, Jambunathan, head of the unmanned aerial systems and aeronautics business at the division, said L&T expects to deliver 100 new 'Teer' drones to the Indian Air Force, with production already underway.