Adani Group Targets Defence Revenue Growth with Leonardo Deal

Adani Aerospace and Defence, a step-down subsidiary of

, has signed a partnership with Italian helicopter maker Leonardo to manufacture, maintain, and repair military helicopters in India. This marks the company’s second major global tie-up in two weeks, following its collaboration with Brazil’s Embraer to produce aircraft. The deals underscore Adani Group’s ambition to significantly scale its defence revenues over the next five years, leveraging localization and government procurement opportunities. Partnership Details - Collaboration with Leonardo to localize and supply military helicopters to the Indian Army and Navy. - First India-made versions expected to be delivered before 2030. - Localization will be phased, aligned with Indian defence sourcing norms. Financials and Ramp-Up - FY25 consolidated operating revenue: ₹2,007 crore. - Capital requirements for the Leonardo deal to be disclosed shortly. - Defence arm participating in emergency procurement (EP-4 and EP-6) projects, currently in advanced ramp-up stages. - Net contribution from defence operations expected to rise meaningfully in coming fiscals. Strategic Outlook - Focus on scaling existing joint ventures rather than pursuing new ones in FY26. - Long-term goal: build a sustainable defence ecosystem with aerospace, helicopters, and aircraft manufacturing. Space and Surveillance Play - Adani Defence Systems acquired Alpha Design Technologies (2018–2020) to strengthen space surveillance capabilities. - Alpha Design posted ₹1,039 crore revenue in FY25, driven by government contracts for earth observation and surveillance satellites. Market Positioning - Recent partnerships highlight Adani’s intent to become a major player in India’s defence production drive. - Defence revenues expected to grow steadily, supported by government contracts, localization mandates, and global collaborations.