Adani Group has stepped up its push into defence manufacturing, securing two international aerospace partnerships within a span of two weeks as it seeks to build scale in India’s defence sector amid rising government capital expenditure.
A step-down subsidiary of Adani Enterprises Ltd has entered into a partnership with Italian helicopter manufacturer Leonardo to manufacture, maintain, and repair military helicopters in India. The agreement follows an earlier partnership with Brazil-based Embraer to manufacture aircraft, marking a rapid expansion of the conglomerate’s defence collaborations with global aerospace firms.
The Leonardo partnership was signed between Adani Aerospace and Defence, a wholly owned subsidiary of Adani Defence Systems and Technologies Ltd, and the Italian company. Adani Defence Systems and Technologies is itself a wholly owned subsidiary of Adani Enterprises, the group’s flagship firm.
The partnerships are aligned with India’s defence localisation framework, which requires varying levels of domestic sourcing depending on the platform and service category. Manufacturing and maintenance activities under the agreements are expected to be progressively localised over time in line with Indian Army and Navy requirements.
According to Adani Group’s FY25 filings, Adani Aerospace and Defence did not record operating revenue in the previous financial year, reflecting the early stage of its manufacturing and platform development activities. Its holding company, Adani Defence Systems and Technologies, reported consolidated operating revenue of ₹2,007 crore in FY25.
The defence business remains capital-intensive, though the group has indicated that it does not plan immediate fundraising for the newly announced projects. Financial terms of the Leonardo partnership are expected to be disclosed after finalisation.
In parallel, Adani’s defence arm is participating in India’s emergency procurement programmes, which are designed to fast-track acquisitions for the armed forces. These programmes are expected to contribute to near-term execution volumes as the group seeks to increase Defence’s share of its overall revenue mix.
The group has also expanded its presence in defence and space technologies through its earlier acquisition of Alpha Design Technologies, a Bengaluru-based firm specialising in space surveillance and related systems. Alpha Design reported revenue of ₹1,039 crore in FY25, driven largely by government contracts linked to earth observation and surveillance capabilities.
Adani’s defence expansion comes amid intensifying competition among India’s large conglomerates for military and aerospace contracts. Larsen & Toubro Ltd has previously indicated ambitions to significantly scale defence revenues, while Tata Advanced Systems, part of the Tata Group, reported ₹5,176 crore in revenue in FY25, making it one of the largest private defence manufacturers in the country.
Policy support for private sector participation was reinforced in India’s latest budget, which allocated a record ₹7.86 trillion for defence spending, including ₹2.19 trillion earmarked for capital expenditure. A substantial share of this capital outlay is reserved for domestic firms, creating long-term opportunities for Indian manufacturers across platforms, systems, and services.
The pace of Adani’s recent partnerships highlights how India’s private sector is positioning itself to participate more deeply in defence manufacturing and platform development, even as revenue visibility and execution timelines remain medium-term considerations.
