Dynamatic Technologies UAV Pact Strengthens Make in India

Agreement brings three companies together

Israel Aerospace Industries Ltd. (IAI), Dynamatic Technologies Ltd. (DTL) and Elcom Systems Private Limited announced a teaming agreement to address requirements in India’s unmanned aerial vehicle, or UAV, market. The agreement covers the production, assembly and support of UAVs in India. It was announced on July 5, 2017, during the visit of India’s Prime Minister Narendra Modi to Israel. The partnership placed local industrial capability at the centre of the companies’ proposed offering for Indian defence users.

Focus on production and support in India

The companies said the arrangement would combine IAI’s UAV technology and production capabilities with Indian manufacturing and support operations. The stated objective was to build indigenous capability for UAV systems. The cooperation was also designed to support existing maintenance, repair and overhaul, or MRO, programmes in India. This linked new production plans with the installed support infrastructure for current programmes.

Make in India forms the policy backdrop

The agreement was positioned within the government’s Make in India initiative. IAI said it intended to transfer a significant part of its UAV activity to India in the near future, in line with that policy. Technology transfer and local production capability were identified as key elements of the cooperation. The companies said the arrangement could provide Indian armed forces with UAV solutions supported by domestic manufacturing and service capacity.

Dynamatic’s role in the partnership

Dynamatic Technologies said the agreement for local manufacture and assembly of Medium Altitude Long Endurance, or MALE, UAVs supported its aim of creating a UAV enterprise in India. The company already had an earlier partnership with IAI for the manufacture of mini UAVs under Make in India. Dynamatic also said it had worked with the Defence Research and Development Organisation, or DRDO, on Lakshya, a pilotless target UAV. It received a Creative Partner award from DRDO for that developmental work.

Elcom joins the industrial arrangement

Elcom Systems joined IAI and Dynamatic as the third party to the 2017 teaming agreement. The announcement did not specify individual production allocations among the three companies. It did state that their combined work would cover production, assembly and support. The inclusion of Elcom broadened the Indian industrial base proposed for the UAV programme while retaining IAI as the technology partner.

Key facts from the announcement

Later UAV developments at Dynamatic

Dynamatic’s UAV activities have continued to feature in its more recent announcements. In April 2026, Aerodata AG and Dynauton Systems, a Dynamatic Technologies division focused on unmanned systems, signed a memorandum of understanding for an unmanned airborne surveillance and reconnaissance solution. The framework was described as a German-Indian strategic collaboration. Dynamatic also hosted an Australian Army delegation at its Aerotropolis facility and showcased the Dynauton Systems UAS.

Q2 FY2026 financial and operating context

Dynamatic reported mixed Q2 FY2026 results. Revenue increased 8.6% year on year to ₹3,923.80 crore, while EBITDA rose to ₹462.40 crore. Net profit declined to ₹33.10 crore from ₹120.30 crore a year earlier. Its Aerospace segment grew 20.4%, while the Hydraulics segment declined 3.3%. The board also approved the creation of a wholly owned subsidiary, tentatively named Dynauton Limited, for UAV design and manufacturing.

What the agreement means for investors

The 2017 agreement is relevant because it shows Dynamatic’s long-running effort to build UAV capabilities through international technology partnerships and local manufacturing. Its scope included not only aircraft production but also assembly, maintenance support and technology transfer. The more recent proposal for a dedicated UAV subsidiary indicates that unmanned systems remain an identified business area for the company. However, the provided disclosures do not quantify revenue, order value, production volumes or profits linked specifically to the IAI-Elcom agreement.

Broader defence manufacturing context

India’s defence manufacturing policy has placed importance on domestic production and indigenous capability. In this setting, agreements that combine overseas technology with local production can support domestic industrial participation. The IAI-Dynamatic-Elcom arrangement specifically identified Indian armed forces as the intended user base. Its stated emphasis on local support could also be relevant to lifecycle maintenance needs for UAV platforms.

Conclusion

The 2017 teaming agreement brought IAI, Dynamatic Technologies and Elcom Systems together to pursue local UAV production, assembly and support in India. It combined IAI’s stated technology-transfer plans with Dynamatic’s manufacturing and UAV development experience. Dynamatic’s subsequent Dynauton initiatives and its proposed UAV subsidiary show that unmanned systems continue to be part of its announced strategic direction.