Forget airlines, this is where the next aviation boom lies

Summary: As airlines place record plane orders, a quieter wealth opportunity is emerging among India’s precision part makers that supply critical aircraft components to global OEMs like Boeing, Airbus and more. We spotlight six listed companies that are leading the charge.

India’s aviation industry is undergoing unprecedented growth. That reflects from record plane orders domestic airlines are placing with global original equipment manufacturers or OEMs. Air India and IndiGo together have ordered close to a thousand aircraft in the last two-three years, a number comparable with the total fleet of some major nations. Yet, these planes will continue to roll out of Boeing and Airbus factories.

That raises an important question: If India doesn’t build planes, can it still benefit from this boom? The answer is yes. While India does not make aircraft, it is still manufacturing thousands of specialised parts that go into building one. A number of smaller component manufacturers are becoming indispensable in the global supply chain and that’s where the next round of compounding in the aviation space could take place.

The opportunity

The aircraft supply chain is multi-tiered. To save costs, OEMs outsource design and manufacturing to suppliers across four levels. Tier-1 companies make major components and receive parts or subassemblies from tier-2 players. The vast majority of production in these levels rests in Europe and North America. Tier-3 and tier-4 manufacturers are the small machine shops that make thousands of critical parts and even software. This is where Indian players have embedded themselves, especially after Covid-19 that led to a supply crunch and forced many global manufacturers to shut shop.

What accelerated the growth was Indian firms’ prior experience in other areas of manufacturing, such as auto or industrials. So even as they did not have a track record in aerospace ancillaries, their strong brand presence helped attract clients quickly despite the lengthy process—something the industry is well known for to prioritise safety and efficiency.

Here are various parts of the chain where India is building a strong presence:

• Aerostructures (45–50 per cent of aircraft value): The skeleton and skin—fuselage panels, wings and tail sections. Indian firms like Hindustan Aeronautics, Aequs and Dynamatic Technologies are active here.
• Engines (25–30 per cent): The power unit generating thrust. Global majors like GE, Safran and Rolls-Royce dominate this space but Indian players such as Azad Engineering and Raymond Aerospace are now contributing components.
• Avionics and electrical systems (15 per cent): The control systems, sensors and wiring networks. This area overlaps with India’s software and electrical strengths, benefiting companies such as Rossell Techsys.
• Landing gear and actuation systems (8–10 per cent): The mechanisms that enable aircraft to move, land and steer. Several Indian machining companies are building competence here.
• MRO (maintenance, repair and overhaul): A recurring global business worth over $120 billion. MROs focus on preserving and enhancing aircraft cabin interiors and components. India’s share remains small but is rising rapidly.

Smaller players taking to the skies

Here are some notable listed manufacturers that are investing big and making strides as part of the tier-3 and tier-4 supply chain.

1) Unimech Aerospace

Unimech manufactures engine tooling, jigs, fixtures and precision airframe components for leading aircraft engine makers and MROs. The company also produces ground-support equipment and high-tolerance machined parts used across commercial and defence platforms.

Over the last two years, its revenues have more than doubled to Rs 243 crore in FY25, driven primarily by the aerospace business, which now constitutes the majority of its overall revenue.

The company has expanded machining capacity to 6.3 lakh hours annually and passed compliance for over 4,000 unique products, reflecting the growing depth of its product range. Its investment in Dheya Engineering, focused on micro gas turbines, signals an early move into unmanned aerial vehicle (UAV) propulsion. Management expects aerospace growth in FY26 to remain robust, led by new export programs and capacity utilisation gains.

2) Azad Engineering

Azad Engineering manufactures turbine blades, airfoils and precision engine parts used in aircraft made by General Electric, Rolls-Royce, Honeywell and Safran.

The aerospace and defence segment recorded revenue of Rs 80 crore in FY25, nearly double the Rs 41 crore posted in FY24, now accounting for about 18 per cent of total revenue. The increase came from higher deliveries and new facility ramp-ups for GE Vernova and Mitsubishi Heavy Industries.

With an order book exceeding Rs 6,000 crore, the company aims to move from component manufacturing to engine sub-assemblies and expects its aerospace segment to maintain 20–25 per cent annual growth over the next three years.

3) Sansera Engineering

Sansera’s aerospace, defence and semiconductor (ADS) division produces machined components and assemblies for civil and defence aerospace programs. Its clients include Collins Aerospace, ISRO and international defence OEMs.

In FY25, revenue from this division rose 72 per cent year-on-year to Rs 141 crore, up from Rs 82 crore in FY24, and accounted for around 4 per cent of total revenue.

The company expects its new aerospace facility in Bengaluru and recently secured contracts to help double aerospace revenue again by FY26. It continues to focus on improving machining precision and adding customers across domestic and export markets.

4) Raymond Aerospace (JK Maini Global Aerospace)

Raymond’s aerospace business operates through JK Maini Global Aerospace, a joint venture with the Maini Group that manufactures engine and structural components for global clients such as Safran, Pratt & Whitney and Rolls-Royce.

The division reported revenue of Rs 80 crore in Q2 FY26, up 15 per cent year-on-year, contributing roughly 15 per cent of Raymond Group’s total revenue. The company specialises in machining titanium and Inconel alloys and runs on long-term supply contracts spanning five to 10 years.

With capacity expansion and automation underway, the aerospace business is preparing to move into assembled subsystems, positioning itself for sustained growth over the next few years.

5) Rossell Techsys

Aerospace and defence form the core of Rossell Techsys’ business, focused on electrical wiring harnesses, panels and test rigs for leading global aircraft and defence programs.

In FY25, the company’s revenue rose 20 per cent year-on-year to Rs 260 crore, driven by higher execution of long-term export contracts and ramp-up at its Bengaluru facility. Rossell serves major US aerospace clients and maintains certifications for defence cybersecurity and quality compliance.

With an order book exceeding Rs 700 crore and multi-year contracts worth over Rs 2,500 crore, the company has clear visibility for growth. It continues to expand capacity and automation to meet rising demand and expects steady, mid-teen revenue growth in FY26.

6) Dynamatic Technologies

Dynamatic Technologies manufactures fuselage assemblies for the Airbus A220, fuel tank structures for Dassault Falcon 6X and rear fuselage sections for Deutsche Aircraft’s D328eco, while also supplying missile launcher systems for DRDO and BEL.

In FY25, its aerospace segment generated Rs 608 crore in revenue, up from Rs 510 crore in FY24, contributing over 40 per cent of the company’s total turnover.

The growth was supported by higher production for Airbus and Dassault programs and by increased activity in defence manufacturing. Dynamatic continues to invest in its Bengaluru Aerotropolis facility and is expanding into UAVs and electro-optics through its subsidiary Dynauton Systems. The company expects aerospace revenues to maintain a 20–25 per cent annual growth trajectory, supported by strong demand visibility and long-term partnerships with OEMs.

What will drive value creation

Investors need to keep track of a few critical factors crucial to Indian manufacturers’ success:

• Strong corporate governance to meet international compliance standards
• Engineering depth to maintain precision at scale
• Financial prudence to support capacity growth
• Operational reliability to ensure consistent deliveries over long production cycles.

This is a business where relationships are built slowly but last for decades. The opportunity lies in tier-3 and tier-4 manufacturing segments that combine cost advantage with technical skill.

Over the next decade, a growing share of global aircraft will include parts built in India, quietly affirming the country’s arrival in the world’s most demanding manufacturing ecosystem.

Where to invest to ride India’s manufacturing boom

India’s precision-engineering wave is only getting started—from aircraft parts to auto ancillaries, a quiet manufacturing renaissance is unfolding. At Value Research Stock Advisor, we’re tracking the companies best placed to profit from this shift.

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Also read: Stock Story: Breaking the airline curse