Drone stocks in focus: Indian drone companies, including Zen Technologies, ideaForge Technology, DroneAcharya Aerial Innovations, Hindustan Aeronautics, Paras Defence and Solar Industries, have seen a massive surge in their share values in recent sessions. This rally has been driven by heightened demand on Dalal Street following the launch of ‘Operation Sindoor’ on May 7, in retaliation for the April 22 Pahalgam attack in Indian-administered Kashmir.
The ongoing mission demonstrated the strength of India’s indigenously developed defence and drone systems, which not only destroyed key air bases across the border, but also successfully intercepted drones and missiles launched by Pakistan.
In the new age of warfare, drones are increasingly being used by military-focused nations, including India, for border surveillance and intelligence gathering. Incidents such as the 2019 Pulwama attack and India’s subsequent airstrike in Balakot have further highlighted the growing role of drones in surveillance and precision operations.
The latest tensions between India and Pakistan have once again underscored the importance of drone and counter-drone technologies. Market participants believe that demand for drones will continue to strengthen in the coming years amid India’s efforts to strengthen its borders.
The demand for unmanned aerial vehicles (UAVs), autonomous ground vehicles, and unmanned underwater vehicles (UUVs) has accelerated in recent years, driven by their cost-effectiveness and reduced risk to human personnel.
The Indian government has strengthened its defence capabilities through domestic manufacturing, creating unprecedented opportunities for both domestic players and foreign investors, and positioning India as an emerging hub for defence manufacturing.
Amid heightening geopolitical tensions, there are growing expectations that the Indian government will increase its defence spending—particularly in drone technologies—prompting investors to rapidly add drone stocks to their portfolios. This has resulted in gains of up to 50% in drone-related stocks in less than two weeks.
Drone stocks soar up to 50% since May 7
Amid rising demand for drone stocks following May 7, IdeaForge Technology has led the rally, with its share price surging by 50%—rising from ₹362 to ₹546 apiece.
DroneAcharya Aerial Innovations, a recent entrant on Dalal Street, has also seen a sharp rebound, gaining 41% since May 7. This rally brought much-needed relief for the stock, which had been under pressure for four consecutive months between January and April, during which it lost 46% of its value.
| Stock Name | Returns since May 07 |
|---|---|
| ideaForge Technology | 50% |
| DroneAcharya Aerial Innovations | 41% |
| Zen Technologies | 37% |
| RattanIndia Enterprises | 17% |
| Paras Defence | 16% |
| HAL | 10% |
| Solar Industries | 6% |
| Source: Trendlyne | |
Zen Technologies has also delivered impressive returns, with its share price jumping 37% from ₹1,361 to ₹1,865 apiece.
Meanwhile, Paras Defence shares have registered an uptick of 16% over the same period, as investor interest in drone-related counters continues to strengthen. While other stocks inlcudues Solar Industries and Hindustan Aeronautics have also gained up to 10% since May 07.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
