Defence Stock in Focus After It Wins ₹1,600 Cr Army Drone Tender

Synopsis: The Indian Army’s latest drone procurement marks another step in strengthening next-generation warfare capabilities, with domestic defence companies emerging as frontrunners in a major fast-track acquisition programme. 

The Indian Army is accelerating its transition towards next-generation warfare by expanding the use of advanced drone systems across its combat operations. As part of this strategy, it has taken another step in its fast-track procurement programme by identifying the lowest bidders for a major loitering munitions contract. The move highlights the growing role of indigenous defence manufacturers in strengthening India’s long-range precision strike and unmanned warfare capabilities. 

Indian Army Advances Drone Modernisation

The Indian Army has moved ahead with its fast-track procurement of 840 loitering munitions with a range of over 100 km, valued at around Rs. 1,600 crore. The procurement is aimed at strengthening the Army’s long-range precision strike capabilities and is part of its broader push to modernise battlefield operations using advanced drone technology. Price bids have already been opened, and the project has now entered the negotiation stage.

Tata Advanced Systems and Nibe Emerge as Lowest Bidders

Tata Advanced Systems has emerged as the lowest bidder (L-1) and is expected to supply 64 percent of the required loitering munitions, translating into an order worth around Rs. 1,000 crore. Nibe Defence has secured the L-2 position and is likely to receive the remaining 36 percent share of the order. Only three companies Tata Advanced Systems, Nibe Limited with its Vayuastra platform based on Skystriker drones, and A-Vision qualified after the technical evaluation. The Army will now hold price negotiations with the L-1 and L-2 bidders before finalising the contract.

Focus on Indigenous Drone Warfare Capabilities

The procurement aligns with the Indian Army’s ongoing efforts to strengthen its dedicated drone warfare capabilities. It has already raised Shaktibaan regiments for drone operations, while Divyastra batteries and Bhairav battalions have been equipped with drones to carry out precision strikes against enemy targets. These initiatives reflect the Army’s increasing reliance on unmanned systems for future combat operations.

Larger Procurement Pipeline Ahead

The current tender is only one part of a much larger acquisition plan. According to estimates, the Indian Army intends to procure around one lakh drones for various operational roles. Over the next 12–18 months, the Artillery Directorate is expected to induct drones with operational ranges between 50 km and 1,000 km under fast-track procurement. In addition, the Army is preparing a separate Rs. 1,500 crore tender for 36 jet-based drones, which is also expected to be divided between the L-1 and L-2 bidders. This indicates a sustained pipeline of opportunities for domestic defence manufacturers.

Conclusion: 

The latest procurement marks another significant milestone in the Indian Army’s efforts to modernise its combat capabilities through advanced drone technology. With a large pipeline of drone acquisitions planned over the coming months, domestic defence manufacturers are expected to play an increasingly important role in supporting India’s self-reliance goals. The project also reflects the Army’s continued focus on enhancing long-range precision strike capabilities and preparing for evolving battlefield requirements.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Defence Stock in Focus After It Wins ₹1,600 Cr Army Drone Tender appeared first on Trade Brains.