Overview of some of the popular drone stocks in 2025
The drone industry in India is projected to reach a value of $23 billion by 2030, indicating significant growth potential. Let us have a look at some trending drone stocks:
1. Dixon Technologies (India) Limited (DIXON)
Dixon Technologies is a leading electronics manufacturer in India.
It is involved in the production of various electronic products, including drones.
They have been expanding their presence in the drone manufacturing space and are capitalising on the growing demand for drones in sectors like agriculture, surveillance, and logistics.
2. Larsen & Toubro Limited (L&T)
L&T is a leading Indian multinational engaged in engineering, construction projects, manufacturing, and financial services.
The company is actively involved in the development and integration of drone technology for various applications, including surveillance and reconnaissance.
3. Hindustan Aeronautics Ltd (HAL)
HAL is a leading aerospace and defence company in India.
It is primarily engaged in the manufacturing of aircraft, helicopters, and related systems.
While HAL's primary focus is on manned aircraft and aerospace systems, it also has expertise in:
4. Info Edge (India)
Info Edge is a prominent internet company in India, known for its flagship job portal Naukri.com and other online properties like 99acres.com and Jeevansathi.com.
While Info Edge's core business is in the internet sector, it has invested in drone technology startups through its venture capital arm.
The company is poised to benefit from its drone investments, which can further enhance its stock price and market valuation.
5. DCM Shriram Industries Limited
DCM Shriram Industries is a diversified company with interests in agriculture, industrial chemicals, and engineering products.
The company has been exploring the use of drones in agriculture for:
Crop monitoring
Spraying, and
Irrigation management
The company is determined to position itself as a potential player in the drone industry.
6. Zen Technologies Ltd.
Zen Technologies is a leading simulation technology company in India that offers training solutions for defence and security forces.
The company has expanded into the development of UAV simulators and drone-related technologies.
These simulators are used to train UAV operators and enhance their skills in various mission scenarios.
7. RattanIndia Enterprises
RattanIndia Enterprises is a diversified conglomerate with interests in power generation, infrastructure, and other sectors.
The company has announced plans to venture into the drone industry, particularly in areas like:
8. Bharat Electronics Limited (BEL)
Bharat Electronics Limited is a state-owned aerospace and defence company in India.
They are involved in the development and manufacturing of a wide range of defence electronics, including drone-related technologies such as:
Surveillance systems and
Communication equipment
With the increasing focus on defence modernisation and border security, BEL stands to benefit from the growing demand for drone-related products and services.
9. Genesys International Corporation Limited
Genesys International is a geospatial technology company that provides mapping, surveying, and geospatial solutions.
It specialises in providing drone-based aerial surveying services.
Genesys International is focused on tapping the growing market for drone-based surveying and mapping solutions.
10. Paras Defence and Space Technologies (PDST)
PDST is a defence and aerospace company specialising in the manufacturing of:
The company also offers solutions related to UAVs and drone systems.
It provides drone-based surveillance and reconnaissance solutions for defence and homeland security applications.
Plan Your Investments Smartly – Explore Muhurat Trading Opportunities!"
How to identify drone stocks in India?
Here is how to identify drone stocks in India:
Revenue growth: Look for companies that have earned good revenue in the last quarter or financial year. Such companies’ stocks have better chances for a price increase.
Profitability: Evaluate drone companies based on how much profit they have earned. The profit must be higher each quarter and annually.
Debt-to-equity ratio: Consider investing in drone stocks that have an ideal debt-to-equity ratio, preferably below 1.
R&D: Look for drone companies that invest heavily in research and development to improve their products. Such companies are better positioned to have their stocks increase in price.
Budget Updates in the Drone Sector in India (2025–26)
India’s Union Budget 2025–26 continued to strengthen support for the domestic drone industry, reflecting the government’s focus on self-reliance, advanced manufacturing, and emerging technologies. Budget measures aim to expand drone adoption across sectors such as agriculture, logistics, infrastructure, and defence, while encouraging innovation and local production.
- Enhanced support under PLI schemes
Higher allocations under the Production-Linked Incentive framework support domestic manufacturing of drones and key components, helping companies scale operations and improve competitiveness.
- Push for import substitution
Budget provisions emphasise reducing dependence on imported drone parts by encouraging local sourcing and indigenous design capabilities.
- Wider application across sectors
Funding support promotes the use of drones in agriculture, mapping, surveillance, and regional connectivity, increasing commercial demand.
- Skill development and employment
Initiatives focusing on training drone operators and technicians aim to build a skilled workforce and support industry expansion.
Features of drone stocks in India
Here are the features of drone stocks in India:
High revenue growth
Drone companies that have diverse products and applications earn high revenue as the products are priced higher and can be used in various industries and sectors.
Market demand
Drones are used in various applications, including aerial surveying, crop monitoring, disaster management, and delivery services.
Limited profitability
Most drone companies in India are new and focus more on improving their products, leading to limited profitability.
Government support
The Indian government supports drone companies through policies and incentives such as the Production Linked Incentive (PLI) scheme.
Technological innovation
One of the most important features of drone stocks in India is that they offer cutting-edge technology like high-resolution cameras, AI-driven automation, and advanced navigation systems.
Discover stocks from other sectors
Popular Stocks under Rs. 20
Semiconductor Stocks in India
Undervalued Stocks to Buy Under Rs. 50
Cybersecurity Stocks in India in 2025
Green Hydrogen Stocks to Invest in
Defence Stocks
Factors to consider when investing in the drone stocks in India
Drone stocks in India can offer attractive return potential when supported by strong technical indicators and sound fundamentals. However, to make well-informed investment decisions, it is important to evaluate certain key factors carefully before investing in drone-related companies in India.
- Market potential
Evaluate the market potential of the drone industry in India by analysing overall demand, government initiatives, and use in other sectors such as agriculture and logistics. All these factors should be positive for you to consider investing in drone stocks.
- Technology and innovation
Examine various companies' drone products and related technologies, including their features, performance, and potential applications. Furthermore, see if the companies invest in R&D and are improving their products through new versions. Stocks of such companies are better positioned to increase in price.
- Regulatory environment
Regulatory compliance is crucial for drone companies to operate effectively. Ensure the company adheres to Indian aviation and drone regulations set by the Directorate General of Civil Aviation (DGCA). Furthermore, see if the government is supporting the industry through new policies and incentives.
- Financial health
One of the most important factors while investing in drone stocks in India is reviewing the company’s financial statements to assess revenue growth, profitability, and margins. Strong financial performance can indicate stability and growth potential and higher chances for the stock to increase in price. Evaluate the company's cash flow, as it should be positive for the stock price to increase.
- Management and leadership
The company should have skilled and experienced management as they are the core of business operations and profitability. Research the background and expertise of the company's leadership team. Look at the management’s track record in achieving business goals, managing growth, and handling challenges.
Should you invest in Drone Stocks?
Investing in drone stocks can offer exciting growth potential, thanks to rising demand across defence, agriculture, logistics and infrastructure sectors. However, these stocks are still in an early-stage industry, meaning many companies have limited track records and face regulatory and operational risks. Investors should evaluate a company’s fundamentals, order book strength and ability to scale before investing. It is wise to view drone stocks as a long-term, high-risk, high-reward play rather than a quick win.
Benefits and opportunities of investing in drone stocks in India
There can be numerous benefits to investing in drone stocks in India. These include:
Market expansion and industry growth
The Indian drone industry is the latest innovative sector booming because of the complementary services it provides to other sectors. Since it is on the verge of market expansion, its growth potential can provide good returns to investors.
Increased adoption and integration
Drones are becoming more useful in various industries, and companies are placing orders with drone manufacturers to make custom drones to improve their business efficiency. Due to the increased adoption and integration, drone companies are increasing their revenue every year, making drone stocks a viable investment.
Increased productivity and cost savings
One of the biggest benefits of the drone sector is that it allows for increased productivity and cost efficiency in a business. Using drones, businesses can save significantly on labour costs, complete tasks quickly, and serve customers even in remote locations. Investing in drone stocks can earn good returns based on higher demand.
Innovation and technological advancement
The drone industry is backed by advanced technologies and innovation. Drone companies are making customised drones with the latest technologies that can reduce business costs. Drone stocks of companies that are investing in technologies and innovation can allow for good capital appreciation.
Risks of Investing in Drone Sector Shares in India
Investing in drone sector shares in India offers exposure to an emerging technology-driven industry, but it also involves several risks that you should evaluate carefully. The sector is still at a developing stage, and business models, regulations, and demand patterns continue to evolve. Understanding these risks helps you align investments with your risk tolerance and long-term objectives.
- Regulatory and policy uncertainty: The drone industry is heavily regulated, and changes in airspace rules, licensing norms, or usage permissions can affect operations, project timelines, and revenue visibility for drone companies.
- Early-stage industry risks: Many drone companies are still in the early phases of commercialisation, with limited operating history. This can lead to uncertain cash flows, inconsistent earnings, and higher business risk.
- Technology and obsolescence risk: Rapid advancements in drone technology may render existing products outdated. Companies that fail to innovate or invest in research may lose competitiveness.
- Limited scale and profitability: Several drone firms operate at a small scale and may struggle to achieve sustainable profitability due to high costs and limited order volumes.
- Dependence on government demand: A significant share of drone usage comes from government and defence contracts. Delays or changes in procurement policies can directly impact revenues.
Conclusion
The drone sector in India holds immense potential for growth across industries like agriculture, logistics, and surveillance. Due to the increasing demand for UAV technology, investing in drone stocks can offer lucrative opportunities. However, investors must stay updated with market trends and innovations to precisely identify promising investment prospects.
