3 Stocks to Watch Amid Likely Drone Shakti Boost in Budget 2026

The Budget 2026 is likely to announce a manufacturing-focused incentive scheme under the Drone Shakti initiative to accelerate indigenous production of unmanned aerial vehicles, Moneycontrol has reported.

According to the report, the proposed scheme, is expected to run for five years and aligned with the Sixteenth Finance Commission period.

Here are three drone stocks that you can watch should there be an announcement as reported.

Please note, this is not a recommendation or fundamental analysis of these stocks.

#1 Zen Technologies

First on our list is Zen Technologies.

Zen Technologies has established itself as a leader in defence technology during a period of rapid technological advancement and evolving security threats.

Zen Technologies is an expert in land-based force simulation training, developing state-of-the-art simulators that enable military personnel to rehearse for actual situations in safe settings.

Currently, they provide the military with practical, economical, and long-lasting alternatives to traditional live drills by offering training systems for tanks, automobiles, artillery, and aircraft.

The Counter Unmanned Aerial System (CUAS) platform from Zen Technologies provides a complete anti-drone solution that effectively tackles the growing security risks presented by unapproved drone operations. The CUAS's multi-layered, multi-sensor architecture is intended to recognise, classify, and eliminate aerial threats.

Financial Highlights of Zen Technologies

Source: Equitymaster

On the financial front, Zen Technologies reported revenues of Rs 1,736 m in Q2 FY26, against Rs 2,418 m YoY. The net profits of the company were placed at Rs 620 m vs Rs 634 m YoY.

The company anticipates that FY26 will be a more measured year in terms of financials, primarily due to the timing of order inflows and execution cycles.

This is a natural calibration phase within a larger growth trajectory, according to the management. The company's medium-term goal is to generate a total of Rs 60,000 m in revenue over FY26, FY27, and FY28.

This forecast highlights the maturity of its pipeline, the growing momentum in defence modernisation, and confidence in its technological capabilities.

To know more check the Zen Technologies fact sheet and latest quarterly results.

#2 Paras Defence and Space Technologies

Next on the list is Paras Defence and Space Technologies.

Paras Defence and Space Technologies is an advanced Indian defence and space engineering company specialising in indigenously designed, developed, and manufactured products and solutions.

As far as drones is concerned, Paras Heven Advanced Drones Private Ltd has been incorporated as a new subsidiary. It's a joint venture in which Paras Defence holds 51%, and Heven Drones from Israel owns the other 49%.

Together, the company plans to build advanced logistics and cargo drones in India. These drones aren't just for the military; they're made for civilian use too, and they can carry loads anywhere from 10 to 40 kg.

A key feature of this JV is the integration of Heven Drones' proprietary hydrogen-powered technology, which offers significantly longer flight endurance compared to traditional battery-powered drones.

Financial Highlights of Paras Defence and Space Technologies

Source: Equitymaster

On the financial front, the company reported revenues of Rs 1,057 m for Q2 FY26, against Rs 871 m YoY. The net profits of Paras Defence during the same period were Rs 195 m vs Rs 127 m YoY.

Looking ahead, the company will gain from strong government drives such as "Make in India" and rising defence budgets aimed at self-reliance and homegrown technology.

The company has also received several major international deals, among them contracts for anti-drone systems that signal rising global confidence in its technology.

Paras Defence almost completely controls the market for homegrown imaging parts used in space and defence systems, from highprecision sensors to rugged optical units. All this should spur growth over the next few years.

To know more check the Paras Defence fact sheet and latest quarterly results.

#3 DroneAcharya Aerial Innovations

DroneAcharya Aerial is a drone solutions companies, offering training, defence systems, aerial services, and consulting.

The company's expertise spans design and manufacturing of next-generation drones, purpose-built for agriculture, defence, logistics, and infrastructure with unmatched precision and scalability.

The company is also a DGCA-certified Remote Pilot Training Organization (RPTO).

Financial Highlights of DroneAcharya Aerial Solutions

Source: Equitymaster

In the first half FY26, standalone revenue from operations stood at Rs 95.8 m, and total revenue stood at Rs 107.8 m. EBITDA for the half year ended 30 September 2025 stood at Rs 46.2 m, while net profits was placed at Rs 19.4 m.

The first half FY26 for DroneAcharya was largely a period of strengthening overall operational efficiency, resulting in improved margins and a more focused approach.

The company has expanded its defence solutions by developing an indigenized product range. With the recent defence order and a strong pipeline, the management remains confident of maintaining positive net profits.

The company continues to focus on high-value drone applications in defence, logistics, and industrial inspection, supported by its vision of enabling a skilled and self-reliant drone ecosystem in India.

To know more check the DroneAcharya Aerial Innovations fact sheet and quarterly results.

Conclusion

Investing in drone stocks requires evaluating market growth potential alongside company-specific risks and regulatory dynamics.

Key factors include government policies, technological innovation, and financial health, particularly in India's rapidly expanding sector.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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...