Aerpace Industries Limited has announced a significant milestone in its defence technology vertical, marking a potential breakthrough in the international market for its aerShield drone program.

UAE Defence Company Shows Strong Interest

On August 19, 2025, Aerpace General Trading LLC, the UAE subsidiary of Aerpace Industries Limited, received a Letter of Intent from a prominent UAE defence company. The UAE entity has expressed strong interest in Aerpace's advanced defence drone portfolio after a thorough evaluation.

Upcoming Demonstrations and Potential Procurement

The UAE defence company plans to send representatives to India for live demonstrations of drones developed under the aerShield programme. Subject to satisfactory demonstrations and technical validation, the UAE entity has indicated its intent to proceed with procurement of Aerpace defence drones for their defence requirements.

Addressing Shareholder Concerns

In response to shareholder queries about visible progress, Aerpace Industries has reassured investors that technology development is actively underway across all verticals. These include:

• AerVolt (solar energy)
• aerShield (defence drones)
• aerWing, aerTaxi, aerCar (urban air mobility)
• Advanced infrastructure

The company emphasized that these deep-technology projects require significant time in R&D, prototyping, and compliance before large-scale commercial rollouts.

Demonstration of Progress

To provide tangible evidence of ongoing execution, Aerpace has shared a test video of one of its defence drone prototypes. The video, available on the company's website, showcases a part of the broader portfolio of advanced UAVs under development.

Looking Ahead

Upcoming demonstrations with Indian and UAE defence authorities are expected to be pivotal milestones for Aerpace Industries. These events will be crucial in validating the company's work and potentially converting development efforts into commercial opportunities.

Neha Mankame, Company Secretary and Compliance Officer of Aerpace Industries Limited, stated, "We remain committed to creating long-term value for all stakeholders by advancing cutting-edge technologies across renewable energy, defence, and advanced air mobility."

As Aerpace Industries Limited enters this promising stage of global engagement, the company continues to focus on its transition from development to demonstrations and ultimately to revenue-generating operations in its various technology verticals.

Aerpace Industries has released a comprehensive business update detailing the company's strategic progress from January to December 2025, showcasing the evolution of its integrated aerial transportation and infrastructure ecosystem, termed the "aerVerse." The update highlights significant milestones across multiple verticals including defense systems, renewable energy manufacturing, and facility development.

aerVerse Ecosystem Framework

The company is developing an integrated ecosystem comprising five key components that work in synergy. Rather than operating through isolated products, Aerpace is building interconnected systems designed for long-term resilience and operational control.

Key Milestones Throughout 2025

The company achieved several critical milestones across different quarters, demonstrating systematic execution of its strategic roadmap.

Q1 2025 Developments

In January 2025, Aerpace publicly presented its integrated ecosystem framework at the Urban Air Mobility Expo 2025 in Greater Noida. The engagement focused on demonstrating how aerial mobility, emergency response, cargo transport, and energy-powered infrastructure function as a unified system.

February marked the activation of core verticals, with aerVolt securing a large-scale order for high-efficiency solar panels, reinforcing its role as the energy backbone supporting Aerpace's infrastructure. The company also formally entered the defense sector in India and the UAE under the aerShield programme, focusing on indigenous surveillance, autonomous, and tactical UAV platforms.

Mid-Year Progress

April 2025 brought technology validation as the company successfully completed flight testing of the aerRecon ARM-5 surveillance drone. This milestone validated autonomous flight capability and indigenous system design, strengthening confidence among defense and institutional stakeholders.

During mid-2025, Aerpace participated in national-level discussions across defense, mobility, and aerospace platforms, supporting broader understanding of integrated system-based approaches to future infrastructure and security requirements.

Q3-Q4 Strategic Advances

August 2025 marked significant infrastructure development with the Pune manufacturing facility becoming operationally visible, positioning it as the central hub for manufacturing, R&D, testing, and corporate operations. The company also received a Letter of Intent from a UAE-based defense organisation following evaluation of aerShield platforms, indicating international interest in the company's defense capabilities.

September continued operational readiness efforts with installation and alignment of core machinery at the Pune facility. The company strengthened its leadership team with the appointment of Mr. Prakash Gaur to the Board, adding extensive experience in national infrastructure, logistics, and large-scale execution.

Drone City Partnership

In November 2025, Aerpace signed a Memorandum of Understanding with the Government of Andhra Pradesh for participation in India's first Drone City at Kurnool. The initiative includes land allocation for long-term development, supporting UAV testing, manufacturing expansion, and ecosystem-scale deployment within a policy-backed framework.

Integrated Ecosystem Components

The aerVerse ecosystem integrates multiple specialized divisions working in coordination. The aerShield division focuses on defense and autonomous UAV systems, while aerOS provides system intelligence and control capabilities. The aerVolt division handles sustainable energy manufacturing, supported by the Pune facility serving as the manufacturing, R&D, and testing backbone. The Drone City initiative provides long-term scaling and infrastructure support, with strengthened leadership ensuring execution discipline and strategic oversight.

Mr. Milan Shah, Managing Director, emphasized the company's commitment to building resilient systems designed to support future mobility, defense, and energy requirements. The comprehensive update demonstrates Aerpace's structured approach to executing its roadmap while prioritizing foundational capability, regulatory alignment, and long-term sustainability.