Top Drone Shares in India 2024: Drone Manufacturing Companies to Add to Your Watchlist

India's drone industry is rapidly transitioning from early adopters to established market players.

Fuelled by burgeoning investment and technological advancements, Indian drone companies are capturing this expanding market with their diverse approaches and ambitions.

These companies are not only increasing their sales but also forging strategic partnerships and making significant capital expenditure (capex) investments.

This surge in activity is creating a wealth of opportunities for investors looking to capitalise on this burgeoning market.

To put things into context, several factors are fuelling the rapid rise of India's drone industry.

As investors seek alternatives to China, India's favourable government regulations, the Production-Linked Incentive (PLI) scheme for drone manufacturing, and a skilled engineering workforce offer attractive conditions for a technological boom.

The global drone market is projected to reach a staggering US$ 56.7 billion (bn) by 2026.

The vision is crystal clear - by 2030, India aims to be a global hub for drones.

The Union Ministry of Civil Aviation estimated that the industry, which now has a turnover of around Rs 0.8 billion (bn), will reach Rs 120-150 bn by 2026, and is expected to create over 100,000 jobs in the next five years.

Keeping all this in mind, let's look at the top Indian drone stocks that can add significant value during this boom.

#1 Paras Defence & Space Technologies Ltd

Paras Defence & Space Technologies Ltd is a pioneer in defence and space engineering solutions in India, with over 40 years of excellence.

It broke new records in FY23, with revenues of Rs 2.2 bn and a net profit of Rs 0.4 bn.

The company is currently exploring the huge potential of the drone industry, catering to various sectors such as agriculture, mining, and surveillance.

It has a state-of-the-art R&D facility, where it creates innovative drone solutions with AI-based navigation and data analytics.

Paras Defence partners with leading academic institutions like IIT Bombay and reputed organisations like DRDO, to access the best research talent and accelerate innovation.

It also collaborates with global giants like Israel Aerospace Industries, to gain access to advanced technologies and explore joint ventures, enhancing its global competitiveness.

The company showcases its drone capabilities at prominent aerospace and defence events, reaching a wider audience and creating export opportunities.

It has a robust order book of over Rs 5.5 bn.

#2 Zen Technologies

Zen Technologies designs, develops and manufactures state-of-the-art Combat Training Solutions for the training of Defence & Security Forces worldwide and is a leader in providing Counter-Drone Solutions for safeguarding the borders etc.

In FY23, the company posted a revenue of Rs 2.2 bn with Rs 0.5 bn in profit.

The company's laser sharp focus on research and innovations has enabled it to secure 125 patents, 15 of which were granted in FY24.

Zen Technologies enjoys a deep partnership with India's defence forces. Its anti-drone solutions (CUAS) offer critical, multi-layered protection that's gaining interest both at home and abroad.

Its recent showcase at IDEX 2023 in Abu Dhabi signals a bold ambition to make their mark on the global stage.

But Zen Technologies isn't limiting itself to defence. The company foresees massive potential of drones in areas like agriculture, deliveries, and surveillance, and it's making strategic moves to seize these civilian markets.

Zen Tech's Rs 500 million (m) investment in a new R&D and manufacturing facility in Goa represents a major growth accelerant.

This state-of-the-art hub will boost innovation capabilities, streamline production, and create 800 jobs, contributing positively to the local economy.

The company is actively collaborating with engineering colleges, ITI institutes, and local MSMEs to foster talent development and strengthen the drone ecosystem in India.

In December 2023, Tata AIA Life insurance made a significant investment of Rs 1.5 bn in Zen Tech.

As of September 2023, the company had an order book of Rs 12.8 bn.

#3 Ideaforge Technology

IdeaForge is a global leader in drone technology, creating and producing Unmanned Aerial Vehicle (UAV) systems for security and surveillance purposes.

The company became profitable in FY23, earning Rs 1.9 bn in revenue and Rs 0.3 bn in profit.

IdeaForge's success is driven by its strong commitment to intellectual property and innovation.

It has applied for 62 patents worldwide, and 25 of them have been granted so far.

IdeaForge dominates the Indian UAV market with a 50% market share, serving both civil and defence sectors.

The company has joined hands with Garuda Aerospace, another leading drone maker, to work together on product development and manufacturing, aiming to benefit from their combined skills and resources.

In November 2023, IdeaForge teamed up with Skylark Drones, a top drone delivery service provider, for joint operations in India.

It recently launched the new "BlueFire Touch" drone controller, which offers a user-friendly and improved flight control experience. This launch meets the growing need for easy-to-use drone operating systems, especially in areas like agriculture and industrial applications.

It also made history by completing India's first Beyond Visual Line of Sight (BVLOS) drone flight with their NETRA v4 drone. This marks a major breakthrough for drone operations in India, opening up new possibilities for long-distance deliveries and surveillance.

Besides making hardware, IdeaForge is also expanding into software and data analytics. Their "ideaForge Cloud" platform provides drone data management and analysis solutions, generating a steady income and adding value to their customers.

In December 2023, IdeaForge signed a Memorandum of Understanding (MoU) with GAIL India to use drones for pipeline inspection.

Its vertical integration from design, development, manufacturing, and marketing ensures high quality and fast customization, enabling the company to meet client needs and offer reliable autonomy.

As of November 2023, their order book was worth Rs 2.5 bn.

In January 2024, it won another Rs 480 m contract with the Indian Army for counter-drone technology.

Oh, and by the way, IdeaForge also qualified for the government's PLI scheme.

#4 Rattanindia Enterprises Ltd.

RattanIndia Enterprises, a leader in the Indian drone industry, spearheads the market through its 360° Drone-as-a-Product and Drone-as-a-Service portfolio offered by its wholly-owned subsidiary, NeoSky India Ltd. The company is building a strong presence across consumer, commercial, defence drones along with drone services and Pilot training.

The drone-as-a-service concept presents a significant opportunity in the drone industry, as it offers a cost-effective solution for companies. This is expected to fuel industry growth and reduce enterprise costs.

Through its subsidiary NeoSky India, Rattan boasts the largest operational deployment of indigenous UAVs in India.

It's diverse approach to the logistics, surveillance, agriculture, audit and inspection sectors gives it a competitive edge.

The company has a new opportunity to increase its revenue, thanks to its new licence to train drone pilots. This is very important, because India will need about 100,000 drone pilots in the next few years.

The company has made substantial investments in research and development to improve its existing product technology and expand its range of offerings.

Its subsidiary, Throttle Aerospace Systems (TAS) has India's first DGCA approved drone and has licence to make drones for the Ministry of Defence (MoD). TAS also qualified for GOI's PLI scheme.

The company is implementing a multi-faceted sales strategy, including direct sales, partnerships, and online platforms, to increase market reach and product visibility.

This involves customer engagement activities, product demonstrations, social media campaigns, and a distributorship sales model to boost income.

#5 Droneacharya

Droneacharya is a Pune-based drone maker that has been growing rapidly in the Indian drone industry.

The company, which went public in late 2022, has seen its stock price soar by 63% since then.

The company earned a profit of Rs 34.3 m on a revenue of Rs 191.4 m in financial year 2023.

Droneacharya's impressive growth and success in FY23 can be largely credited to its global expansion efforts.

The company has smartly spread across many countries during this period, setting up more offices and training centres to meet the increasing demand for its services.

Some of the key centres are North Carolina, Amsterdam, Thailand, the Philippines, Malaysia, and Dubai.

It provides a variety of solutions, such as drone surveying and mapping, drone-based logistics solutions, industrial enterprise solutions, inspection and surveillance solutions.

The company's strengths are its innovative products and its dedication to training. Droneacharya offers training for drone flying, drone making, drone data processing, and using industrial drone applications.

To speed up its expansion and improve its reach across India, Droneacharya has come up with a clever plan of creating drone training organisations through franchises all over India.

The company is currently working to set up a new manufacturing unit in Maharashtra for making agriculture and surveillance drones.

It has teamed up with Gridbot Technologies to combine drones, bots, and IoT solutions to serve the advanced needs of defence and industrial organisations.

It also joined forces with StudioTrika, a drone based immersive solutions to create drone light shows and experiential concepts for events, product launches, customer experience, and marketing.

#6 Adani Group (Adani Defence & Aerospace)

Adani Group is also somehow involved in this space with its defence arm. Adani Defence and Aerospace is one of India's leading private sector manufacturers, specializing in Unmanned Aerial Systems, Small Arms, and Ammunition.

One of Adani's key moves has been the formation of a joint venture with Israel's Elbit Systems, a global leader in drone technology. This partnership has enabled the production of the Hermes 900 and Hermes 450 drones within India.

Adani's indigenous drone development program has produced the Drishti series of drones, created specifically to address the diverse needs of the Indian Navy. These advanced drones offer long-endurance surveillance, reconnaissance, and maritime security capabilities, enhancing India's control over its vast coastline.

Adani continues to explore new applications for drones, potentially expanding into logistics, infrastructure monitoring, and other commercial sectors.

Adani Aerospace and Defence is scheduled to invest Rs 10 bn in Counter Drone Systems and Missile Development and Manufacturing Centres at the Adani Aerospace and Defence Park in Hyderabad

#7 Drone Destination

Drone Destination, along with its sister company Hubblefly Technologies, is a DGCA-authorized Remote Pilot Training Organization. They have developed an integrated drone ecosystem encompassing drone manufacturing, certified training, services, and drone rental.

It achieved a key landmark by becoming the first flying organization in the country to train 1,000 drone pilots.

The 'Rent a Drone' model and drone services lower the barrier to entry for individuals and businesses wanting to use drones without ownership costs.

Drone Destination currently operates eight "Drone Hubs" at Gurugram, Dharamshala, Chandigarh, Gwalior, Ahmedabad, Bangalore, Coimbatore and Madurai and plans to open 150 Drone Hubs, over the next three years.

Drone Destination has deployed over 25 drone teams conducting village and large-scale mapping across Uttar Pradesh, Gujarat and Andhra Pradesh. The company aims to map at least 1 lakh villages under the current Scheme over the next two years.

#8 Hindustan Aeronautics Limited (HAL)

Hindustan Aeronautics Limited (HAL) is an Indian public sector aerospace and defence company, headquartered in Bangalore.

Through its subsidiary, Naini Aerospace Limited, it aims to establish itself as a Centre of Excellence for Manufacturing & MRO activities in the Aerospace & Drone Industry.

The subsidiary company likely obtained authorization as a Remote Pilot Training Organization (RPTO), enabling them to play a crucial role in drone pilot training.

In partnership with Empyrean Robotic Technologies, it has launched drone pilot training programs, addressing the growing demand for skilled pilots in this industry.

It has also partnered with Garuda Aerospace, a leading drone manufacturer, to focus initially on the development and production of agricultural drones.

#9 Larsen & Toubro

Larsen and Toubro (L&T), a major Indian engineering and construction conglomerate, is actively involved in the drone industry through its subsidiary, L&T Defence & Smart Technologies.

The company invests heavily in research and development to create advanced drone technologies and solutions.

L&T entered into an agreement with IdeaForge to offer drones and allied systems for defence use.

The joint venture aims to provide hi-tech, integrated drone solutions to enhance security and surveillance. It also plans to offer anti-drone solutions to counter the threat of malicious or unintended usage of drones

L&T has also signed a memorandum of understanding with NewSpace Research & Technologies (NRT) to develop a new range of submarine launched drones to meet Indian Navy requirements

#10 Solar Industries India Limited

Solar Industries is a major Indian company known primarily for its extensive manufacturing of explosives, detonators, and defence systems.

The company is now actively expanding into drone technology, developing warheads and missile-armed drones for the Indian armed forces.

It has successfully demonstrated its prototypes of Weaponised Drones (Hexacopter). These drones can be used in both offensive and defensive roles

Solar Industries is the first Indian company to fully indigenize and develop Loitering munitions in-house.

It has developed a unique digital B2B portal, ensuring logistics planning and the timely dispatch of the products.

#11 Magellanic Cloud

Magellanic cloud's subsidiary Scandron specializes in drone manufacturing and services, focusing on cargo and agriculture drones, as well as inspections and surveys.

It specializes in logistics drones capable of carrying cargo from 5 to 20 kilograms over distances up to 30 kilometres. It also provides agricultural drones designed for precision spraying.

The company plans to assist its client in inspection through drones in

industries like shipping, civil, agriculture, industrial and infrastructure

projects and oil and gas services.

Magellanic is looking to build a strong IT Solutions and drone solutions offerings globally.

Their commitment to customer-centric solutions and continuous research and development keeps their drones on the cutting edge.

#12 Coromandel International

Coromandel established Dhaksha Unmanned Systems as a dedicated subsidiary focused on drone development and agriculture-related drone solutions.

In June 2023, it acquired a majority, 51% stake in Dhaksha Unmanned System, a drone-technology startup providing complete range of Unmanned Aerial Systems (UAS) technology solutions.

It is the only player in India that offers petrol engine-based agri-drones and the 1st drone manufacturing company to obtain type certification within agricultural and

surveillance drone segments

The company has closely partnered with agritech startups and solution providers for promoting adoption of drone spraying

Dhaksha has qualified for government's PLI scheme.

#13 DCM Shriram Industries

DCM Shriram Industries, a company engaged in the businesses of sugar, chemicals, and industrial fibre, has been actively exploring the drone industry.

DCM Shriram partnered with Israel's Skylock Systems to form a joint venture aimed at domestically manufacturing Israeli-designed counter-drone systems under the name 'DCM Shriram portable counter-unmanned aircraft system.

The company is actively conducting field testing of its counter-drone systems with the Indian Border Security Force (BSF).

DCM Shriram has expressed a keen interest in developing and manufacturing versatile drones for agriculture in addition to their defence-oriented systems.

#14 Axiscades Technology

Axiscades Technologies, a leading product engineering and high-technology solutions company, has been actively exploring the drone industry.

It focuses on indigenous drone manufacturing and the development of advanced drone-based solutions, aligning with the 'Make in India' initiative.

The company is actively developing counter-drone systems to address security threats from rogue or unauthorized drone operations.

#15 Bharat Forge

Bharat Forge, a leading Indian multinational company with a significant presence in the automotive, power, oil and gas, construction & mining, rail, marine, and aerospace industries, has been actively exploring the drone industry through its subsidiary Kalyani Strategic Systems Limited.

It is developing swarm drone technology, where multiple drones operate as a coordinated unit for surveillance and attack purposes.

The company is also developing VTOL drones that offer versatile deployment capabilities.

Indian Companies Involved Directly or Indirectly in the Drone Sector

So these were the top Indian companies that are playing a key role in making drone, either themselves or by forging strategic partnership with startups.

Apart from the above, there are several more companies that are actively doing something or the other in the drone landscape.

These include -

• Infosys
• CE Info Systems
• Zomato
• Info Edge

At present, there are limited drone stocks in India. But it won't be long before many more companies take the plunge and explore the use cases of drones.

We're not far away from when India becomes a global drone hub. Whether we like it or not, drones are here to disrupt the market.

How to Invest in Drone Stocks

Drones have become much more commonplace than they were in preceding centuries. Today, they have entered the consumer market and have become associated with more than just the idea of war.

While it may seem like drones are expensive, inexpensive drones are also becoming popular these days. And for various recreational purposes.

It appears there will be a flaring competition going forward among drone related stocks as they aim to capture the market.

For investing looking to take the plunge, there are multiple ways one can invest in drone stocks in India. An investor can play the drone theme by:

• Investing in defence companies manufacturing drones.
• Investing in companies partnering with drone startups for defence or commercial drone orders.
• Investing in companies having any exposure to drone electronics.
• Investing in logistics companies venturing into drone deliveries.

Right now, drones are utilized more in the military. Their unmanned flight capabilities are something most military services look for. So naturally, these drones are in high demand.

Investing in defence companies manufacturing drones can prove lucrative.

Likewise, recreational drones are also becoming more popular as we speak. Soon, they'll be as popular as the military and industrial ones.

Content creators use drones for vlogging, creative videos, university projects, research, etc.

A smart investor will also explore the opportunity of investing in stocks which are making recreational drones.

But you need to make sure these companies are generating consistent revenues.

Remember, the drone industry is a diverse market. There are different companies targeting different niches within the market.

So check which drone companies are generating steady and growing revenues from the drone segment for the past few years. Check their latest financial updates to see if their future prospect is still promising.

Best Drone Stocks in India for Long Term Investment

You can now filter the best drone stocks in India using Equitymaster's powerful stock screener.

This screener has a separate section for drone, allowing investors to filter stocks that suit their needs.

Here are some of the most popular screens on drone stocks on Equitymaster's stock screener -

1. Fastest Growing Drone Stocks
2. High Dividend Yield Drone Stocks
3. Fundamentally Strong Drone Stocks
4. Debt Free Drone Stocks
5. Top Drone Growth Stocks

In Conclusion

India's drone sector is poised for phenomenal growth.

As government regulations mature, market adoption accelerates, and innovation flourishes, drone technology is set to fundamentally alter industries across the board.

The companies highlighted in this article represent just the vanguard of Indian drone ingenuity and business acumen.

Some of these companies have demonstrated strong financial performance, robust order books, and impressive R&D capabilities.

They have also ventured into new domains, such as drone-as-a-service, drone data analytics, and counter-drone solutions, to cater to the evolving needs of various sectors.

From precision agriculture to secure deliveries and advanced defence applications, drones will increasingly define India's technological landscape.

Investors who recognize this early advantage stand to reap long-term rewards. The rapid scaling of infrastructure, R&D investment, and strategic partnerships underscores the long-term vision behind this transformative market surge.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here.