India-Pakistan Tensions Trigger Drone Stock Surge

As geopolitical tensions between India and Pakistan escalated this week, Indian defence stocks—particularly those linked to drones and aerospace—have surged sharply. While broader markets remain under pressure, a wave of investor interest has lifted shares of key players like ideaForge, Zen Technologies, Paras Defence, Hindustan Aeronautics Ltd (HAL), and Bharat Electronics Ltd (BEL), following reports of India’s use of suicide drones in precision strikes during Operation Sindoor.

ideaForge Leads the Rally with 17% Surge

ideaForge Technology, a leading player in India’s drone manufacturing sector, emerged as the biggest gainer on Friday. Its shares soared more than 17% during intraday trade, driven by growing optimism around drone warfare. Over the past week alone, ideaForge has gained over 21%, even though it has been down 26% in the past six months and 27% year-to-date. The rally reflects investor belief in the company’s strategic relevance to modern warfare and surveillance.

Zen Technologies Hits Upper Circuit

Zen Technologies also enjoyed a significant boost, hitting its 5% upper circuit limit in intraday trading. Known for its combat training and simulation systems,  Zen Technologies’ recent performance has been mixed. While it is up 2.5% in the past week, the stock remains 43% down for the year so far. Nevertheless, its one-year return of 52% underlines the longer-term faith in its role within India’s defence sector.

Paras Defence & Space Technologies Maintains Strong Momentum

Paras Defence & Space Technologies continued its impressive run with a nearly 6% jump in intraday trade on Friday. The stock is up 7% for the week, a remarkable 54% over the past month, and 43% over the last six months. Its performance in 2025 has also been strong, making it one of the standout names in India’s defence technology space. Investors appear to be betting on its sustained growth, given its focus on aerospace and advanced defence systems.

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HAL and BEL See Moderate Gains

Defence Public Sector Undertakings (PSUs) also benefited from the rising tide. HAL posted a 1.5% rise in intraday trading. While modest compared to others, the company’s one-month gain of 11% and annual rise of 17% reflect steady institutional confidence in its long-term capabilities.

Similarly, BEL recorded a 2.5% uptick on Friday. Over the past month, its shares have climbed over 12%, with a solid 39% gain over the past year. Despite a relatively flat performance over the last six months and on a YTD basis, BEL’s inclusion in the current rally shows renewed interest in state-run defence firms amid national security concerns.

Drone Warfare Becomes a Strategic Asset

Reports suggest that India deployed Harop suicide drones for precision strikes on Pakistani air defence systems near Lahore and Multan. This new phase of drone-centric military engagement underscores a strategic shift in India’s combat capabilities. Using unmanned aerial vehicles (UAVs) changes battlefield dynamics. It strengthens the investment narrative around defence tech companies.

As defence technologies evolve and India’s geopolitical posture becomes more assertive, the current surge in drone stocks of ideaForge, Zen Technologies, Paras Defence, Hindustan Aeronautics Ltd (HAL), and Bharat Electronics Ltd (BEL) could be a harbinger of more sustained investor interest.