Better Drone Stock: Zen Tech vs Paras Defence

Stock Performance

Zen Tech's stock price has gained around 20% in the past year; however, it has dipped from its 52-week high of Rs 2,268.2 to its current price of Rs 1,440.2.

One of the major reasons for this could be a drop in revenue during the Q1 FY26 quarter.

However, since then, the stock price has moved gradually upward owing to different factors such as major order wins, steady increase in the revenue and profits, significant acquisitions, especially in the TISA Aerospace for drone technology, and others.

On the other hand, Paras Defence share price has tanked by 22% in the past year and from the 52-week high of Rs 971.8 to the current price of Rs 719.

Paras Defence saw a massive rally between March 2025 and May 2025, but due to profit booking, the share price fell sharply in the mid of July. Since then, it has been almost flat.

Reasons like sluggish order book growth through FY26, muted revenue and profit growth contributed to the muted performance of this niche defence stock.

Revenue

Coming to the revenue...

Zen Technologies revenue grew at 77.9% CAGR in the last five years, from Rs 546 m in FY21 to Rs 9,736 m in FY25.

The quarterly revenue went up to Rs 3,250 m in Q4 FY25; in Q1 FY26, it slipped to Rs 1,582 m. Since then, it has gradually gone up to Rs 1,778 m in Q3 FY26.

On the other hand, Paras Defence saw revenue grow at 20.5% CAGR in the past five years, rising from Rs 1,433 m to Rs 3,647 m between FY21 and FY25.

In the recent quarters, Paras Defence witnessed slow revenue growth owing to muted order wins.

So, if you compare both companies, Zen Technologies is leading when it comes to revenue growth, primarily owing to big scale orders wins mainly from the defence space.

Revenue

Profitability

In terms of profitability as well, Zen Technologies is leading.

Operating profit of Zen Tech for the last five years grew at 111.6% CAGR, while for Paras Defence, it grew only at 18.9%.

Similarly, the net profit of Zen Tech grew at 155% CAGR for the same period, while Paras Defence only logged 31.3% CAGR during the period.

Profitability

Zen Technologies not only rapidly scaled its business compared to Paras Defence but also managed its expenses efficiently, which is evident from its operating and net profit margins, which have also significantly grown over the years.

Financial Efficiency

Now let's compare the financial efficiency of both drone makers, and for that, we will be comparing return on equity (ROE) and return on assets (ROA).

ROA of Zen Tech sharply increased from a mere 1.9% in FY21 to 15.6% in FY25, while Paras Defence ROA decreased to 5.8% in FY24 from 8% recorded in FY21; however, at the end of FY25, it again surged to 8.1%.

Similarly, the ROE in the case of Zen Tech was around 1.4% in FY21, which surged to 17.6% in FY25, but Paras Defence only witnessed a growth from 7.6% to 9.6% during the period.

Financial Efficiency

Order Book

One of the interesting factors is that the order book of both companies as of 31 December 2025 was quite close.

However, FY26 Paras Defence only received orders worth Rs 220 m, while Zen Technologies won orders worth Rs 5,860 m only during Q3 FY26.

Order Book (Rs m)

Dividends

Coming to the dividends, Zen Technologies has been paying regular dividends even though the dividend per share is low. On the other hand, Paras Defence hardly paid any dividends.

Dividends

Valuation

Finally, we will be comparing the valuation of the two companies, and for that, we will evaluate Price to Earnings (PE) and Price to Book (PB) ratios.

Zen Technologies has a PE of 45.6, while that of Paras Defence is 81.2. Similarly, the PB ratio of Zen Technologies is 6.9, lower than 9.3 of Paras Defence.

Both ratios indicate that Zen Technologies is undervalued compared to Paras Defence at their current market prices.

Valuation

Which is a Better Drone Stock: Zen Tech or Paras Defence?

If numbers are compared, then Zen Technologies is way ahead of Paras Defence. Whether it is the revenue, profits, or financial efficiency, Zen Tech is leading ahead of Paras Defence.

However, given the order book scenario, Paras Defence is close to that of Zen Tech, but again, the execution is a question, and so is the operational efficiency.

As a drone stock, Paras Defence has only 10% of its orders for anti-drone systems, while Zen Tech has more than half of its orders for anti-drone systems.

Both companies are exploring new opportunities in the drone and anti-drone systems market, and given the geopolitical scenario, this space is rapidly growing.

So, before deciding which is the best drone stock, as an investor, it is crucial to evaluate all such factors from companies' fundamentals to the future market opportunities.

Happy investing.

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...