Gamma Rotors order book tops Rs 60 crore on drone demand

Gamma Rotors' order book has crossed Rs 60 crore, and the Delhi-based defence drone manufacturer has projected FY26 revenue of about Rs 30 crore.

The update comes as India's domestic military drone market moves towards larger procurement programmes and greater emphasis on local production.

India's defence establishment has signalled stronger backing for indigenous drone manufacturing as operational demand rises and procurement gathers pace. At the National Defence Industries Conclave, Defence Minister Rajnath Singh said the country should become a global hub for drone manufacturing and described local production as important for strategic autonomy and defence preparedness.

Data cited by the defence ministry showed 676 startups, MSMEs and innovators are now part of the iDEX ecosystem. It added that 58 prototypes worth Rs 3,853 crore have received procurement clearance, while 45 procurement contracts worth Rs 2,326 crore have been signed.

That policy direction is beginning to translate into larger orders. India is preparing what could become its biggest military drone acquisition programme, with domestic orders expected to exceed USD $2 billion this year, according to Reuters.

Shift to scale

For drone manufacturers, the competitive test is moving beyond development and trial deployments. Defence buyers are increasingly assessing whether companies can build, deliver and support systems at meaningful scale.

Gamma Rotors said it has used capital raised in January 2024 to expand manufacturing capacity, strengthen in-house research and development, and reinforce its supply chain. It raised Rs 27 crore by issuing 19.72 lakh shares at Rs 137.42 each, implying a post-money valuation of about Rs 180 crore based on 1.30 crore outstanding shares.

The company said recent growth has been driven by operational deployments rather than demonstration work. During Operation Sindoor, it carried out urgent deliveries of its Nighthawk, Powersorous and Striker UAV platforms for the Indian Army, using in-house 3D printing and digital manufacturing to shorten production timelines.

According to Gamma Rotors, it has recorded more than 10,000 flight hours, delivered more than 650 drones and serviced more than 2,000 UAVs, including third-party platforms from ideaForge, Asteria Aerospace, Prox Dynamics and DJI. It also said it has trained more than 3,000 defence personnel.

Order pipeline

Elsewhere in the sector, listed drone maker ideaForge reported annual order bookings for FY26 of about Rs 530 crore, its highest on record. It said it executed nearly 40% of its open order book during the fourth quarter.

ideaForge has also announced an expansion into combat drones, including long-range strike drones and loitering munitions, broadening its presence beyond intelligence, surveillance and reconnaissance systems. The move reflects expectations that future military tenders will increasingly include armed and longer-range unmanned platforms.

Investor interest in the segment remains strong. ideaForge has a market capitalisation of around Rs 4,268 crore against annual revenue of about Rs 226 crore, implying a price-to-sales multiple of nearly 18 times.

That valuation suggests investors expect sustained growth in the domestic defence drone market as order visibility improves. It also indicates that listed market participants are assigning a premium to companies seen as likely beneficiaries of expanding procurement and the military's preference for indigenous suppliers.

Manufacturing push

Raphe mPhibr is also expanding its industrial base. The company recently added an 11.5-acre industrial site in Noida to complement its existing defence manufacturing facility, where it has reportedly invested around Rs 800 crore.

It has developed indigenous military-grade autopilot systems and drone engines, and its platforms were also used during Operation Sindoor. The focus on domestic components and systems mirrors a broader shift across the sector towards reducing dependence on imported subsystems.

Larger defence groups are also building out their unmanned systems businesses. Tata Advanced Systems, Larsen & Toubro and Adani Defence have expanded their activities in the segment, while DRDO-backed programmes continue to open opportunities in surveillance, logistics, loitering munitions and armed UAVs.

The result is a more crowded and demanding market. Startups and newer manufacturers are no longer judged only on whether they can design a viable aircraft. They are increasingly being measured on whether they can fulfil defence contracts quickly, maintain supply chains, provide maintenance over the life of a system and train operators at scale.

For companies such as Gamma Rotors, that means financial metrics such as order books and plant expansion now sit alongside battlefield use as indicators of traction. In India's defence drone market, manufacturing readiness is becoming as important as platform design.

Government support, procurement clearances and a large expected order cycle have created a clearer route to growth for local manufacturers. The next phase of competition is likely to depend on which companies can convert that demand into timely deliveries and sustained operational support.

India's armed forces and security agencies are expected to play a central role in that transition as they place greater weight on local sourcing under the Atmanirbhar Bharat framework, while seeking suppliers that can meet both urgent operational requirements and long-term maintenance needs.