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I have point cloud data obtained from drone. I need to generate DTM out of it. How can I generate and I checked options in ArcGIS and QGIS. I was not able to find any.Could anyone suggest a method to generate the same?

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There are plenty of ways to create a DTM/DSM in both programs. All tools are good, but can be tweaked to give you results based on your precise needs - of which you haven't included any - in your question.

Take a look at these tools, all of which were also discussed on gis.stackexchange, to find the one to best fit your needs

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