L&T Picks Orbital’s Heavy-Fuel Engines for Indian Military Drones

Larsen & Toubro (L&T), India's leading engineering and defence conglomerate, has selected Australian Orbital Corporation's 350HFE heavy-fuel engines for its tactical unmanned aerial vehicle (UAV) programme, according to a regulatory disclosure made by Orbital to the Australian Securities Exchange (ASX) on October 5, 2026. The order marks the first external customer adoption of Orbital's second-generation Power Management System (Gen II PMS), which will be integrated into each propulsion system.

The 350HFE engine is designed to run on heavy fuels such as JP-8 and diesel, offering logistical advantages for military operations. Orbital's Gen II PMS is expected to enhance engine performance and reliability. While the exact number of engines ordered and the contract value were not disclosed, the deal underscores L&T's push to indigenise critical UAV subsystems and Orbital's growing footprint in the global defence market. An Orbital spokesperson stated, 'This order validates our investment in advanced power management technology and opens new opportunities in the Indo-Pacific region.'

The collaboration comes amid India's heightened focus on self-reliance in defence manufacturing and strengthening ties with Australia under the Comprehensive Strategic Partnership. It could pave the way for further Indo-Australian defence technology cooperation, potentially impacting regional security dynamics. Next steps include integration and testing of the engines on L&T's UAV platforms, with deliveries expected to commence in the coming months. Global reactions are yet to emerge, but industry analysts view the deal as a significant endorsement of heavy-fuel propulsion for tactical drones.