Aviation
Indian Govt’s ₹2,000 Cr Drone Boost Could Make These 5 Stocks Soar
To strengthen India’s self-reliance in drone technology and curb its reliance on foreign imports, the Indian government is reportedly finalizing a ₹2,000 crore ($234 million) incentive scheme aimed at accelerating domestic drone manufacturing. The three-year scheme, spearheaded by the Ministry of Civil Aviation, is poised to energise India’s drone ecosystem, spanning hardware, software, anti-drone tech, and critical components. Leading players include ideaForge, Zen Technologies, Paras Defence, BEL, Drone Destination, etc.
Set against the backdrop of rising concerns over Pakistan’s drone activities—allegedly supported by China and Turkey—the initiative is designed to serve both national security and economic objectives. A key goal is to ensure that at least 40% of key drone components are manufactured within India by the end of FY2027-28. Companies sourcing these components domestically could receive additional incentives under the scheme.
Adding to the momentum, the Small Industries Development Bank of India (SIDBI) is expected to extend low-interest loans to drone startups and MSMEs for R&D and working capital. Unsurprisingly, this government push is already sparking bullish sentiment around drone-related stocks.
Here’s a look at five companies that are primed to benefit:
1. IdeaForge Technology Limited
A pioneer in UAV (unmanned aerial vehicle) solutions, ideaForge focuses on defence, mapping, and industrial applications. While its recent earnings show a steep drop—Q4 FY25 revenues fell 80% YoY—IdeaForge stands to gain from the scheme’s R&D incentives and defence procurement preferences. Its long-term value lies in its first-mover advantage and existing government contracts.
Current Market Cap: ₹2,511.70 Cr
Stock Price: ₹581.15
2. Zen Technologies Limited
Zen Technologies is a standout performer, with a staggering 130% growth in quarterly revenue and a 200% spike in net profit. The company manufactures advanced combat simulators and counter-drone systems, making it a direct beneficiary of defence-linked drone demand.
Current Market Cap: ₹17,480.21 Cr
Stock Price: ₹1,934.85
3. Paras Defence and Space Technologies
Known for its niche capabilities in defence optics and avionics, Paras Defence has shown strong growth. Its dual focus on components and integration aligns perfectly with the government’s push for localized manufacturing.
Current Market Cap: ₹7,140.84 Cr
Stock Price: ₹886.10
4. Bharat Electronics Limited (BEL)
A PSU giant, BEL’s legacy in defence electronics makes it an essential stakeholder in India’s drone ambitions. While its stock movement is typically steady, its sheer scale and innovation in drone and radar tech can drive long-term gains under the incentive plan.
Current Market Cap: ₹3,04,890.87 Cr
Stock Price: ₹416.90
5. Drone Destination Limited
Despite recent losses, Drone Destination remains a critical SME player in drone-as-a-service (DaaS), pilot training, and agricultural drone deployment. The scheme’s focus on service delivery and skill development could help the company reverse course.
Current Market Cap: ₹259.13 Cr
Stock Price: ₹106.20
As the drone incentives policy takes flight, investors may want to keep these stocks on their radar. The drone race in India is heating up, and those with an early boarding pass may be in for a lucrative journey.
