Defence Procurement (DAC approvals)

Supplies small and tactical drones for surveillance, loitering munitions that strike targets, and counter-drone systems (radar, electro-optics, jammers and hard-kill) that protect bases and units. Much of this is bought through fast-track emergency procurement and iDEX start-up channels rather than full DAP cycles.

This is the newest, fastest-moving budget line. Emergency procurement round 6 (EP-6) after Operation Sindoor produced real orders (ideaForge reported >₹100 Cr for its ZOLT and SWITCH drones), and the 3 Jul 2026 DAC approved jet-powered kamikaze drones and the AKASH TARANG anti-drone EW system. Country-of-origin checks now keep Chinese parts out.

Small today (hundreds to a few thousand crore a year) but growing quickly. Orders are many and small, margins vary widely, and listed players are small caps whose results swing with single orders.

• Drone warfare lessons (Ukraine, Operation Sindoor)
• Emergency and fast-track procurement rounds
• Counter-drone protection for bases, borders and critical infrastructure

• Motors, batteries, cameras and chips still lean on imports; 'no Chinese parts' checks raise costs
• Fast technology change - designs age in 2-3 years
• Trials in electronic-warfare conditions knock out many bidders

• Order book and quarterly inflow
• Share of revenue from repeat customers
• Gross margin trend
• Indigenous content of key components