L&T expects threefold revenue growth in drone unit over five years

Engineering and construction major Larsen & Toubro (L&T) has projected that its unit housing drones will see revenue grow threefold over the next five years. The announcement came as the company showcased its latest indigenous drone technologies at the Manthan Drone Demo Day in Bengaluru.

The unit, part of L&T's precision engineering and systems division, is expected to benefit from rising demand for unmanned aerial vehicles in defence and civilian applications. The company did not disclose absolute revenue figures, but officials indicated the growth would be driven by both domestic orders and export opportunities.

Manthan Demo Day unveils new platforms

At the Bengaluru event, L&T unveiled the Vedh Mk1 drone and the Chanakya autonomy platform. The Vedh Mk1 is designed for surveillance and reconnaissance roles, while Chanakya provides autonomous navigation and mission management capabilities.

The company described these as fully indigenous efforts, aligning with the government's push for self-reliance in defence manufacturing. L&T has been positioning itself as a key player in the defence technology space, competing with both established firms and new-age startups.

Innovation Fund to back deeptech

Separately, the L&T Innovation Fund has said it will step up investments in deeptech ventures across India. The fund, which backs early-stage companies, is looking to tap into areas such as artificial intelligence, robotics, and advanced materials.

This move is part of a broader strategy to build a domestic ecosystem for cutting-edge technologies, reducing dependence on imports. Industry experts see this as a positive signal for the startup community, which has often struggled to secure long-term capital for hardware-heavy projects.

Strategic importance

Drones have become a critical component of modern defence and surveillance operations. With the government's Defence Acquisition Council prioritising indigenous platforms, L&T's foray into this segment is seen as timely.

The company has not yet provided a detailed breakdown of the expected revenue contribution from drones versus other precision engineering products. Analysts, however, note that the defence sector's growing budget allocation could provide a tailwind for such units.

L&T's focus on autonomy and AI-driven platforms also positions it to cater to emerging requirements in border surveillance, disaster management, and logistics.

What to watch

Industry observers will be keenly watching how L&T scales production of the Vedh Mk1 and whether the Chanakya platform finds adoption beyond internal projects. The company's ability to secure export orders and partnerships with global defence players will also be a key metric in the coming quarters.