India's Aerospace Soars: Exports Skyrocket

India's commercial aircraft manufacturing market is poised for substantial growth, projected to expand from ₹130.51 billion in 2024 to ₹257.09 billion by 2030, reflecting an 11.96% CAGR. This domestic expansion is paralleled by a dramatic increase in exports, which surged to ₹588.38 billion in FY25 from ₹269.03 billion in FY24.

This growth is underpinned by a significant pipeline of aircraft orders, with Indian airlines expecting delivery of over 2,000 new aircraft. This demand is expected to bolster the entire aerospace supply chain, encompassing aerostructures and precision-machined components.

Key companies like Dynamatic Technologies and Aequs are at the forefront of this opportunity. Dynamatic Technologies, with customers including Airbus and Boeing, reported Q1 FY27 revenue growth, although currency fluctuations impacted reported figures. Its aerospace division remains its highest-margin business.

Aequs, operating an integrated manufacturing ecosystem, saw its aerospace revenue rise 40% YoY in Q1 FY27. The company boasts a $1 billion order book and is undertaking significant capacity expansions, particularly at its Hosur facility, to meet future demand.

Despite the promising outlook, the sector faces risks including supply-chain dependencies on imported materials, potential production rate fluctuations, and quality control challenges. Ensuring efficient working capital management and qualifying new capabilities swiftly will be crucial for sustained profitability and growth.