Orbital Locks in Engine Deal for India’s Super Cheel Military Drone Programme
Orbital UAV expands Indian defence partnership with Super Cheel engine order
Orbital Corporation Ltd (ASX: OEC) has secured an order for its 350HFE propulsion system from Dynamatic Technologies Limited to power the Super Cheel UAV development programme. The order expands a two-year strategic partnership that has seen Orbital embed its heavy-fuel engines within India’s domestically focused defence UAV supply chain, positioning the company to supply two products from its heavy-fuel two-stroke range across both the Cheel tactical UAV (150HFE) and the larger Super Cheel variant (350HFE).
The new order represents a material extension of Orbital’s role as propulsion partner within an Indian military programme that is targeting long-endurance reconnaissance capabilities in contested environments. Orbital has been working with Dynamatic and its unmanned systems division Dynauton Systems for the last 2 years to support the Cheel tactical UAV programme, which is currently undergoing flight testing with the Indian Defence Forces.
By supplying engines for both platform variants, Orbital has positioned itself as a key international contributor within an otherwise domestically focused Indian defence supply chain. This dual-product relationship creates potential for production volumes, spares revenue, and ongoing support activities as the Cheel platforms progress towards operational deployment with Indian military forces.
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The tactical UAV platforms and their mission profiles
Cheel tactical UAV
The Cheel tactical UAV is a 5-metre wingspan platform designed for advanced reconnaissance across extreme operating environments. The system is engineered to function in temperatures as low as -20°C and at altitudes up to 5,000m above mean sea level. These specifications position the platform for deployment across India’s varied terrain, including high-altitude border regions and cold-weather operational zones.
Powered by Orbital’s 150HFE heavy-fuel engine, the Cheel UAV is currently undergoing flight testing with the Indian Defence Forces. The platform is designed to deliver long-endurance intelligence, surveillance, reconnaissance, and communications support in contested environments, representing a significant milestone in India’s UAV industry development.
Super Cheel development
The Super Cheel represents a larger variant designed to meet more demanding mission requirements. This platform will utilise Orbital’s 350HFE engine and has been developed specifically to address the Indian Navy’s Long-Range Surveillance & Targeting Drone (LR-STD) requirements under the iDEX programme.
The Super Cheel order positions Orbital to supply propulsion systems across multiple Indian military branches, with the platform targeting extended-range maritime surveillance and targeting missions. The Indian Navy’s requirements under the iDEX programme represent a distinct operational profile compared to the land-based Cheel tactical UAV, with the larger engine providing the power density required for increased payload capacity and mission duration.
Understanding heavy-fuel propulsion systems in defence UAVs
Heavy-fuel engines are designed to operate on military-standard fuels such as JP-8 or diesel variants, rather than conventional aviation gasoline. This fuel compatibility delivers a critical logistics advantage for deployed military forces by enabling UAV operations using the same fuel supply chains that support ground vehicles, helicopters, and other tactical equipment.
The heavy-fuel capability eliminates the need for separate aviation gasoline logistics in forward operating environments, reducing supply chain complexity and improving operational flexibility. For military customers, this fuel standardisation translates to lower lifecycle costs and simplified sustainment operations across deployed UAV fleets.
Orbital’s specialisation in heavy-fuel propulsion addresses a specific military requirement that creates technical switching costs once integrated into platform designs. This positions the company for long-term support revenue streams as platforms enter production and operational service, with engine maintenance, spares provision, and technical support forming part of the broader platform lifecycle.
Dynamatic Technologies as strategic partner
Dynamatic Technologies Limited is a global engineering and manufacturing company with established aerospace capabilities. The firm supplies aerostructures and flight-critical assemblies to global original equipment manufacturers including Airbus, Boeing, Bell Helicopter, Deutsche Aircraft, Dassault Aviation, and HAL. For the year ended 31 March 2025, Dynamatic reported consolidated revenue from operations of INR 14,038 million (approximately AUD 216 million).
Stephen Pearce, Chief Executive Officer
“Our ongoing development partnership aligns Orbital with a well-established and very credentialled Indian aerospace and defence manufacturer, providing exposure to a large and growing unmanned systems market, while leveraging Orbital’s proprietary propulsion technology as a critical subsystem within the platform.”
Dynamatic is seeking to be successful in tenders that have been initiated to support several Indian military acquisitions over the next 12 months. However, the timing and quantum of production volumes and revenues relating to this strategic partnership are ultimately dependent on the adoption of the Cheel platform by the Indian Defence Forces.
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Building global momentum across defence markets
The Indian order forms part of broader commercial progress achieved by Orbital across multiple geographic markets in recent weeks. The company has secured orders and partnership agreements spanning the Middle East, Australia, and Europe, demonstrating geographic diversification within its defence customer base.
Recent activity includes:
- UAE Long-Term Distribution Agreement: 5-year partnership for 50HFE systems, first deliveries August 2026, initial order USD 1.1 million
- Freespace Operations order: 150HFE for Callisto Heavy Lift Drone hybrid range extender, delivery May 2026, extends endurance from approximately 40 minutes to beyond 3 hours
- Norway MoU: Framework with BOS DS for anticipated NATO NSPA tender for Textron Systems HQ 4.8 TUAS programme, expected mid-2026
| Market | Product | Status | Expected Timing |
|---|---|---|---|
| UAE | 50HFE | LTA signed, initial order received | First deliveries August 2026 |
| Australia | 150HFE (hybrid range extender) | Order received | Delivery May 2026 |
| India | 150HFE (Cheel), 350HFE (Super Cheel) | Development partnership | Subject to Indian Defence Force adoption |
| Norway/NATO | TBC | MoU for bid preparation | Tender expected mid-2026 |
Orbital now maintains customers across North America, Europe, India, Southeast Asia, the Middle East, and Australia. This geographic spread reflects the company’s strategy of embedding its propulsion technology within scalable UAV programmes globally, creating potential for production revenue, spares provision, and ongoing support activities as platforms progress from development through to operational deployment.
The heavy-fuel propulsion market within military UAV applications is characterised by long platform lifecycles and ongoing support requirements. Once integrated into platform designs, propulsion systems typically generate recurring revenue streams through engine maintenance, component replacement, and technical support over the operational life of the UAV fleet.
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