Proportional-Derivative (PD) controllers are commonly used in quadrotors due to their simple structure. Tuning of the gains of the PD controller is often cumbersome due to strong coupling of the dynamics between three linear and three angular degrees of freedom. This paper presents a novel method of auto adjusting the proportional and derivative gains of the quadrotor without the use of any stable reference model (unlike model reference adaptive control). The gains are automatically adjusted throughout the flight based on just the state errors. Lyapunov stability analysis and adaptive gain law is used to formulate the control algorithm to achieve way point navigation. It is shown that our proposed controller achieves effective way point navigation even when started off from random gain values.