India's Defence Drone Industry Enters High-Growth Phase as Indigenous Manufacturers Scale Production and Secure Major Orders

India's defence drone industry is witnessing rapid expansion as government-backed indigenous manufacturing policies drive record procurement, large-scale production and operational deployment. Companies including Gamma Rotors, ideaForge Technology and Raphe mPhibr are strengthening manufacturing capabilities, securing major orders and positioning themselves for the next phase of India's defence modernisation.

India's defence drone ecosystem is entering a decisive phase, moving beyond pilot projects and prototype development into large-scale manufacturing, procurement and operational deployment. Driven by the government's continued emphasis on indigenous defence production, lessons learned from recent conflicts and rapidly evolving battlefield requirements, domestic drone manufacturers are witnessing stronger procurement pipelines and expanding opportunities across the defence sector.

The government's policy direction has become increasingly focused on strengthening India's self-reliance in defence technology. Addressing the National Defence Industries Conclave, Defence Minister Rajnath Singh stated that India must emerge as a global hub for drone manufacturing, describing indigenous drone production as essential for strategic autonomy and national defence preparedness. The government also announced that 676 startups, micro, small and medium enterprises, and innovators are now part of the Innovations for Defence Excellence ecosystem. Among them, 58 prototypes worth Rs 3,853 crore have received procurement clearance, while 45 procurement contracts valued at Rs 2,326 crore have already been signed.

The policy momentum is now translating into large-scale procurement. India is preparing what could become its biggest-ever military drone acquisition programme, with domestic orders expected to exceed USD 2 billion, equivalent to more than Rs 17,000 crore, during the current year. The anticipated procurement is expected to significantly strengthen the country's indigenous drone manufacturing ecosystem.

As procurement accelerates, manufacturers are increasingly being evaluated not only on technological innovation but also on their ability to manufacture, deliver and maintain defence systems at scale.

Delhi-based defence unmanned aerial vehicle manufacturer Gamma Rotors is among the companies benefiting from this shift. The company recently announced that its order book has crossed Rs 60 crore while projecting revenue of approximately Rs 30 crore for the financial year 2025-26.

Gamma Rotors had earlier raised Rs 27 crore in January 2024 through the issuance of 19.72 lakh shares at Rs 137.42 per share, resulting in a post-money valuation of approximately Rs 180 crore based on its 1.30 crore outstanding shares. The company stated that the capital has been utilised to expand manufacturing capacity, strengthen in-house research and development capabilities, and establish a resilient supply chain to meet rising demand from the Indian Armed Forces, central paramilitary forces and state police units.

According to the company, its growth has been driven by operational deployments rather than demonstration projects. During Operation Sindoor, Gamma Rotors executed urgent deliveries of its Nighthawk, Powersorous and Striker unmanned aerial vehicle platforms for the Indian Army by leveraging its in-house three-dimensional printing and digital manufacturing capabilities to significantly reduce production timelines.

The company has also recorded more than 10,000 flight hours, delivered over 650 drones, serviced more than 2,000 unmanned aerial vehicles, including third-party platforms from ideaForge, Asteria Aerospace, Prox Dynamics and DJI, and trained more than 3,000 defence personnel.

Among listed companies, ideaForge Technology continues to remain one of the largest organised players in India's defence drone sector.

For the financial year 2025-26, the company reported its highest-ever annual order bookings of approximately Rs 530 crore while executing nearly 40 percent of its open order book during the fourth quarter. The company has also announced its entry into the combat drone segment, including long-range strike drones and loitering munitions, enabling it to target future military procurement opportunities beyond its traditional intelligence, surveillance and reconnaissance portfolio.

Investor confidence in the industry is also reflected in market valuations. ideaForge currently has a market capitalisation of approximately Rs 4,268 crore against annual revenue of around Rs 226 crore, representing a price-to-sales multiple of nearly 18 times. Such premium valuations indicate that investors expect strong long-term growth supported by expanding defence procurement, a robust order pipeline and the increasing role of indigenous drone manufacturers in India's evolving defence ecosystem.

Another rapidly expanding company, Raphe mPhibr, has significantly strengthened its manufacturing infrastructure. The company recently expanded its production footprint in Noida by acquiring an additional 11.5-acre industrial site, complementing its existing defence manufacturing facility where it has reportedly invested around Rs 800 crore. Raphe mPhibr has also developed indigenous military-grade autopilot systems and drone engines, with its platforms seeing operational deployment during Operation Sindoor.

The competitive landscape is also evolving beyond emerging companies. Major defence manufacturers, including Tata Advanced Systems, Larsen and Toubro, and Adani Defence, have expanded their unmanned systems capabilities, while programmes supported by the Defence Research and Development Organisation continue to create opportunities across surveillance, logistics, loitering munitions and armed unmanned aerial vehicle platforms.

For emerging manufacturers, competitive advantage is increasingly shifting from platform development alone to manufacturing readiness. The ability to rapidly fulfil defence contracts, maintain indigenous supply chains, provide lifecycle maintenance and train operators is becoming equally important as technological innovation.

As India's defence procurement pipeline continues to expand and the armed forces increasingly prioritise indigenous platforms under the Self-Reliant India initiative, manufacturers capable of combining proven operational performance with scalable production capacity are expected to secure a growing share of one of the country's fastest-expanding defence sectors.