Top 5 Aerospace Companies In India: Best Insights To Invest

Top 5 Aerospace Companies In India: Best Insights

The aerospace industry is experiencing significant growth both globally and within India. In 2024, India’s aerospace and defense market was valued at approximately USD 27.1 billion and is projected to reach USD 54.4 billion by 2033, growing at a compound annual growth rate (CAGR) of 7%. India’s goal is to increase its share in the global space market from around 2% in 2023 to $44 billion by 2033.

In 2023, India’s aerospace parts manufacturing market was estimated at USD 13.6 billion and is expected to grow at a CAGR of 6.8% from 2024 to 2030, driven by increasing demand for air travel, defense modernization, fleet expansions, and the emergence of private sector participation in space activities.

The Government of India has implemented several initiatives to promote the aerospace companies in India. In May 2020, the government allowed private sector aerospace companies to participate in space programs, leading to the establishment of the Indian National Space Promotion and Authorization Centre (IN-SPACe).

Additionally, the government has approved a 10-billion-rupee (approximately USD 119 million) fund to support space startups, aiming to boost employment, strengthen space technology, and reduce reliance on imports.

Collaborations with global aerospace firms are also on the rise, with companies like Airbus partnering with Indian firms to establish manufacturing facilities will further boost this industry in India.

Let us analyze the top 5 Aerospace Companies in India that will get the maximum benefit out of this boom.

Top 5 Aerospace Companies in India

Let us analyses top aerospace companies in India. These companies have already proven themselves in Indian Aerospace industry. Let us analyses these aerospace companies in details.

Bharat Dynamics Limited

Bharat Dynamics Limited (BDL) is one of the best aerospace companies in India, owned by government-under the Ministry of Defence, specializing in the manufacturing of guided missiles, underwater weapons, and allied defense equipment. The company is one of the best aerospace manufacturing companies in India. The company plays a crucial role in India’s defense sector by producing state-of-the-art missile systems for the Indian Armed Forces. Its major offerings include:

Anti-Tank Guided Missiles (ATGMs)
Surface-to-air missiles (SAMs)
Torpedoes and underwater weaponry
Countermeasure dispensing systems
Repair and maintenance services.

BDL’s contribution to the aerospace manufacturing sector is significant, with a focus on self-reliance in defense technology and an increasing push for exports under India’s “Atmanirbhar Bharat” initiative.

Key Trends in Revenue, Profit, and Cash Flow

Revenue Growth: The company’s revenue has shown steady growth, benefiting from increased defense procurement and export orders.
Profitability: Net profit margin has increased significantly from 14% in FY 2022-23 to 26% in FY 2023-24 due to higher interest income, product mix improvements, and refunds received.
Cash Flow: The company reported a strong operating cash flow, with ₹41,171.86 lakh in FY 2023-24, compared to ₹213,025.18 lakh in FY 2022-23. However, the investment cash flow remains negative due to capital expenditures.

The company has major revenue streams from:

Weapon Systems (96% of turnover)
Repair and Maintenance Services (4% of turnover).

BDL has a dominant player is aerospace manufacturing companies in India within the India’s guided missile manufacturing sector, facing limited competition in aerospace manufacturing domestically. However, in the global market, it competes with defense giants like Lockheed Martin, Raytheon, and Rafael. The company’s market position has been strengthened by government initiatives favoring domestic defense and aerospace manufacturing.

Strategic Priorities for the Next 3-5 Years

BDL is focusing on the below areas for the next 5 years

Indigenization and R&D: Enhancing domestic missile development capabilities.
Export Growth: Expanding international sales in Southeast Asia, the Middle East, and Africa.
New Product Development: Development of next-generation missile systems and underwater weapons.
Infrastructure Expansion: Setting up new facilities such as the RF Seeker Manufacturing Facility and Warhead Manufacturing Facility.

BDL has outlined multiple expansion initiatives:

RF Seeker Facility: Inaugurated in 2023, aimed at strengthening missile guidance capabilities.
Warhead Manufacturing Facility: Opened in 2023 to boost self-reliance in defense.
New Manufacturing Units: Plans to establish additional facilities for missile production

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Bharat Electronics Limited (BEL)

BEL is a leading Indian defense electronics company that develops, manufactures, and supplies advanced electronic equipment, systems, and services. The company’s primary focus is on the defense sector, accounting for approximately 81% of its revenue in FY 2023-24, with the remaining 19% coming from non-defense segments.

Key Business Segments:

Defence Electronics: Radar and Fire Control Systems, Weapon Systems, Communication and Network-Centric Systems (C4I), Electronic Warfare Systems, Avionics, Anti-Submarine Warfare Systems, Electro-Optics, Tank Electronics, Gun Upgrades, Strategic Components, Arms & Ammunition, Seekers & Missiles, and Cyber Security solutions.
Non-Defence Electronics: Homeland Security, Smart City Solutions, Cyber Security, Software Solutions, Medical Electronics, and Electronic Voting Machines (EVMs).

BEL plays a crucial role in India’s defense sector by supporting self-reliance in electronics and providing cutting-edge technology solutions for the armed forces.

Key Trends in Revenue, Profit, and Cash Flow

Revenue: In FY 2023-24, BEL reported a turnover of ₹19,819.93 crore, a 14.35% increase from ₹17,333.37 crore in FY 2022-23.
Profitability: The company has shown consistent growth in profitability, supported by a strong order book and execution capabilities.
Cash Flow: BEL generated strong cash flow from operations but reported a net cash decrease due to significant investments in R&D and capital expenditures.

Defense: ₹30,579 crore worth of defense orders were received in FY 2023-24.
Non-Defence: ₹4,019 crore of non-defence orders were secured, focusing on cybersecurity, smart city solutions, and software services.

Strategic Priorities for the Next 3-5 Years

BEL’s strategic focus areas include:

Expansion in Radar & Electronic Warfare Systems.
Strengthening Network & Cyber Security capabilities.
Investing in Artificial Intelligence (AI) and Unmanned Systems.
Enhancing exports and foreign collaborations to increase global market share.

Diversification into medical electronics, smart cities, and homeland security solutions.
BEL is investing in increasing export opportunities, with an export order book of USD 407.01 million as of April 2024.

Bharat Forge

Bharat Forge is a leading global metal forging company with strong capabilities in precision engineering, manufacturing, and supply of forged components for various industries, including:

In Aerospace Manufacturing, the company manufacturers high-precision components such as landing gears, jet engine parts, and structural components.
Defense: Production of artillery systems, armored vehicles, missiles, and other defense-related equipment.
Automotive: Supplies critical components like crankshafts, connecting rods, axles, and steering knuckles.
Industrial & Energy: Components for oil & gas, power generation, rail, marine, and construction & mining sectors.

The company is actively contributing to India’s defense self-reliance and is positioning itself as a global supplier of aerospace and mobility transformation technologies. This is one of the top aerospace manufacturing companies in India.

Key Trends in Revenue, Profit, and Cash Flow

Revenue Growth: Bharat Forge reported a 21.5% YoY increase in consolidated revenue, reaching ₹15,682 crore in FY 2023-24.
Profitability: The EBITDA margin improved to 28.1%, with a 79% increase in PAT to ₹9,102 crore, driven by the defense sector’s expansion and high-margin exports.
Cash Flow: The company has maintained a strong balance sheet with ₹3,180 crore in cash reserves, providing stability for future investments.

Automotive: The core business remains in commercial vehicles and passenger vehicles.
Defense & Aerospace: Orders worth ₹6,300 crore in FY 2024, with 90% from exports.
Industrial & Castings: Growth of 29.4% in revenue for the industrial castings segment.

Revenue Breakdown by Product, Geography, and Customer

Product-wise: Revenue from high-end precision forging for aerospace and defense is growing rapidly.
Geographical Split:
- India: 35.3% of revenue
- North America: 25.1%
- Europe: 24.4%.
Customer Base: Primarily defense establishments, global aerospace players, and major automobile OEMs.

Strategic Priorities for the Next 3-5 Years

Aerospace Expansion: Investing in high-precision landing gear and engine component manufacturing, expected to come online by FY 2027.
Defense Scaling: Expansion of defense production through Kalyani Strategic Systems Ltd. (KSSL), targeting artillery systems and armored vehicles.
Diversification: Strengthening industrial castings and increasing footprint in EV and lightweight technology.
Global Expansion: Acquisition of AAM India’s axle manufacturing unit to expand the commercial vehicle segment.

Expansion Plans

Aerospace: Dedicated machining line for landing gear components and a ring mill for high-precision jet engine forgings, coming online by FY 2027.
Defense: New facilities under Kalyani Strategic Systems Ltd. (KSSL) are to be fully commissioned by FY 2025.
Industrial Castings: Increased capacity for ferrous castings, positioning JSA among India’s top three suppliers.

Dynamatic Technologies Best aerospace manufacturing companies in India

Dynamatic Technologies is a global leader in precision engineering and manufacturing, focusing on three key segments:

Aerospace & Defense (36% of FY2024 revenue): Manufacturing critical aerostructures, including Flap-Track-Beam Assemblies, aircraft doors, fuselages, and defense components.
Hydraulics (31% of FY2024 revenue): Producing high-performance hydraulic pumps and systems for industrial and agricultural applications.
Metallurgy (33% of FY2024 revenue): Specialized casting and machining for aerospace and defense.

Dynamatic is a key supplier to Airbus, Boeing, Dassault Aviation, and Bell Helicopter, with strategic collaborations for global aerospace supply chains.

Key Trends in Revenue, Profit, and Cash Flow

Revenue Growth: ₹14,293 million in FY 2023-24, a 8.6% increase YoY.
Profitability:
- EBITDA: ₹1,594 million, indicating operational efficiency improvements.
- Net Profit: ₹1,218 million, a substantial increase YoY, driven by aerospace orders.
Cash Flow:
- Strong operating cash flow due to an increase in high-margin aerospace contracts.
- Expansion-related capital expenditures have impacted short-term liquidity.

Aerospace & Defense: 36% of total revenue, with major contracts from Airbus, Boeing, and Dassault Aviation.
Hydraulics: 31% of revenue, facing a temporary slowdown due to product modifications.
Metallurgy: 33% of revenue, transitioning from automotive to aerospace-grade castings.

Market Share Comparison

Aerospace: One of India’s leading aerospace component manufacturers, competing with HAL and Tata Advanced Systems.
Hydraulics: Global supplier, but faces competition from Bosch Rexroth and Eaton.
Metallurgy: Transitioning to aerospace-grade castings, reducing reliance on the volatile auto sector.

Strategic Priorities for the Next 3-5 Years

Scaling Aerospace Business:
- Long-term contracts with Airbus for A220 aircraft doors.
- Dassault Aviation contract for Falcon 6X aerostructures.
- Deutsche Aircraft partnership for D328eco fuselage.
Hydraulics Recovery: Product redesign to improve efficiency and regain market share.
Metallurgy Expansion: Eisenwerk Erla GmbH (Germany) shifting from automotive to high-margin aerospace and defense applications.

Expansion Plans

Dynamatic Aerotropolis (Bangalore): 1.5 million sq. ft. aerospace manufacturing facility, fully operational from Q1 FY 2024-25.
New Airbus Contracts: A220 aircraft doors production ramp-up in FY 2025-26.
Dassault Aviation Expansion: Falcon 6X aerostructures to be delivered in mid-2025.
Deutsche Aircraft (Germany): Rear fuselage production for D328eco, scaling up by FY 2026.

HAL Best in aerospace and defence companies in India

Hindustan Aeronautics Limited (HAL) is India’s leading aerospace manufacturing companies in india, specializing in:

Aircraft Production: Indigenous fighter jets like LCA Tejas, helicopters like ALH Dhruv, and trainer aircraft.
Helicopter Development: Production of Light Combat Helicopter (LCH) Prachand, Light Utility Helicopter (LUH), and upcoming Indian Multi-Role Helicopter (IMRH).
Engine and MRO (Maintenance, Repair & Overhaul): Supporting Indian Air Force, Navy, and international clients.
Aerospace R&D: HAL is actively working on Advanced Medium Combat Aircraft (AMCA), Twin Engine Deck-Based Fighter (TEDBF), and integration with India’s space missions (Gaganyaan).

HAL plays a strategic role in India’s defense self-reliance, with 94% of revenue from defense contracts and growing export ambitions.

Key Trends in Revenue, Profit, and Cash Flow

Revenue Growth: HAL recorded its highest-ever turnover of ₹30,381 crore in FY 2023-24, up 7% YoY.
Profitability:
- Profit Before Tax (PBT) grew 57% YoY to ₹10,19,897 lakh.
- Profit After Tax (PAT) rose 31% YoY to ₹7,59,504 lakh.
Cash Flow: HAL maintains strong operational cash flow, driven by high order execution.

Aircraft & Helicopters: Major revenue contributor from LCA Tejas, LCH, LUH.
Engines & Accessories: Manufacturing and overhauling of fighter jet and helicopter engines.
MRO Services: Maintenance contracts for Indian Armed Forces and global clients.

Revenue Breakdown by Product, Geography, and Customer

Product-wise:
- Fighter jets and helicopters: LCA Tejas, ALH Dhruv, LCH, LUH.
- Engines: Key supplier for GE 414, developing indigenous alternatives.
Geography-wise:
- Domestic (94%): Indian Air Force, Army, Navy, ISRO.
- Exports (6%): Increasing presence in Malaysia, Argentina, Guyana, and Africa.
Customer Base:
- Indian Government: Defense Services, Coast Guard, ISRO.
- Global Clients: Airbus, Safran Helicopter Engines, Argentina’s Air Force.

Strategic Priorities for the Next 3-5 Years

Expanding Fighter Jet Production:
- Scaling up LCA Mk1A production to 16 aircraft per year.
- Developing LCA Mk2, AMCA, and TEDBF for future combat needs.
New Helicopter Platforms:
- Developing IMRH (Indian Multi-Role Helicopter) with Safran.
MRO and Civil Aviation:
- Partnership with Airbus for A320 MRO services in Nashik.
R&D Investments:
- ₹2,82,624 lakh was spent on R&D in FY 2024, focusing on next-gen aircraft and avionics.

Expansion Plans and Specific Dates

LCA Mk1A Third Production Line (Nashik): Commissioned April 2024 to meet IAF demand.
MRO for Airbus A320: To start by FY 2025 in Nashik.
JV with Safran (France) for Helicopter Engine Manufacturing: Formed in November 2023, expected production in FY 2026.
Advanced Medium Combat Aircraft (AMCA) Prototype: First flight expected by FY 2027.

Outlook Aerospace Companies in India

India’s aerospace & defense sector is growing rapidly, and companies like HAL, BEL, or BDL are likely to get strong order from India as well as other countries that are looking for low-cost defence products or equipment. Government support to this industry is just the beginning of a new era of Indian aerospace industry. Long way to go. In another article I will discuss about a few best private aerospace companies that are worth knowing. I will also discuss some of the small and midcap companies that will get benefit out of this industry.