BEL and 3 Other Drone Stocks to Watch as Govt Likely to...

Synopsis: The Principal Scientific Advisor to the Government of India- Ajay Kumar Sood announced that the government will be offering incentives to manufacture drone components and boost R&D for advanced drones, to reduce dependency on imports and several Indian companies in this space would be benefited.

Since the late 20th century, drones usage have been increasing which as of today are even been widely used in defence as well. The usage includes surveillance, intelligence gathering, border monitoring, target acquisition, and precision strikes, reducing risk to human soldiers. Beyond defence, drones are increasingly deployed in agriculture for crop monitoring and spraying, in logistics for last-mile deliveries, in infrastructure inspection, disaster management, mapping, photography, and law enforcement, making operations faster, safer, and more cost-effective across sectors.

Drone Shakti Mission

India is set to soon launch the Drone Shakti Mission, a major push to strengthen domestic drone component manufacturing and reduce reliance on imports, announced the Principal Scientific Advisor to the Government of India, Ajay Kumar Sood. The mission, to be launched under the Anusandhan National Research Foundation, will provide incentives to manufacture drone components and boost R&D for advanced drones, rather than just assembling imported parts.

This initiative is part of India’s broader strategy to achieve technology sovereignty, foster innovation, and support sectors like advanced manufacturing and robotics. The government’s science and technology focus aims to enhance self-reliance in critical technologies. In 2025, drones played a key role in Operation Sindoor, highlighting their strategic importance. The Research Development & Innovation Fund of Rs 1 lakh crore also backs this effort.

With a lakh crore fund we can expect this initiative to benefit several companies in this space, therefore following are the list of companies who are engaged in the business of drones or UAVs in India.

Zen Technologies Ltd

Zen Technologies Limited, headquartered in Hyderabad, designs, develops, and manufactures advanced combat training and counter-drone systems, and through TISA Aerospace Private Limited and Vector Technics Private Limited, is expanding into loitering munitions and indigenous UAV motors to strengthen its drone warfare and drone ecosystem capabilities. The company remains focused on the indigenisation of critical defence technologies, supporting the operational readiness of the Indian Armed Forces, state police forces, and paramilitary organisations.

In the latest quarter Zen Technologies Limited saw a YoY revenue fall by 28 percent, going from Rs 242 Cr in Q2FY25 to Rs 174 Cr in Q2FY26, while the QoQ went up by 10 percent from Rs 158 Cr in Q1FY26.

The YoY Net Profits fell by 1.5 percent, going from Rs 63 Cr in Q2FY25 to Rs 62 Cr in Q2FY26, while the QoQ growth stood at 17 percent from Rs 53 Cr in Q1FY26. The company has a 3 year profit CAGR of 411 percent, while the sales CAGR for the same period is 141percent. The ROCE is at 37 percent and the ROE is at 26 percent.

Bharat Electronics Ltd (BEL)

Incorporated in 1954, Bharat Electronics Limited manufactures and supplies a wide range of electronic equipment and systems primarily for the defence sector, with a limited presence in civilian markets. Headquartered in Bengaluru, the company is also expanding into growth areas including- anti-drone systems, along with plans in Advanced Ground Control Surface Movement Radar and other next-generation defence technologies.

The company successfully conducted the first trial of the Archer UAV, a multi-role Medium Altitude Long Endurance (MALE) Unmanned Aerial Vehicle, in November, with the UAV meeting all performance parameters.

In the latest quarter BEL saw a YoY revenue growth of 25 percent, going from Rs 4,605 Cr in Q2FY25 to Rs 5,792 Cr in Q2FY26, while the QoQ went up by 30 percent from Rs 4,440 Cr in Q1FY26. The YoY Net Profits growth is at 17 percent, going from Rs 1,093 Cr in Q2FY25 to Rs 1,287 Cr in Q2FY26, while the QoQ growth stood at 32 percent from Rs 969 Cr in Q1FY26.

The company’s stock has seen a compounded return of 60 percent in the last 3 years. BEL also has a 3 year profit CAGR of 30 percent, while the sales CAGR for the same period is only 16 percent. The ROCE is at 38.9 percent and the ROE is at 29 percent.

Data Patterns

Data Patterns (India) Limited, incorporated in 1998 and headquartered in Chennai, is one of the fastest-growing companies in India’s defence and aerospace electronics sector. The company is expanding its capabilities into electronic warfare (EW, which contributed 12 percent of revenue in Q2 FY26) programmes, including ground-based drone detection solutions.

It has developed advanced products in passive drone detection and counter-drone technologies, including jammer drones, and has been actively developing compact radars for UAVs, as well as radio relay solutions for airborne platforms and UAVs, strengthening its presence in next-generation defence electronics.

In the latest quarter the company saw a YoY revenue growth of 237 percent, going from Rs 91 Cr in Q2FY25 to Rs 307 Cr in Q2FY26, while the QoQ went up by 210 percent from Rs 99 Cr in Q1FY26. The YoY Net Profits growth is at 63 percent, going from Rs 30 Cr in Q2FY25 to Rs 49 Cr in Q2FY26, while the QoQ growth stood at 88 percent from Rs 26 Cr in Q1FY26. Data Patterns has a 5 year profit CAGR of 59 percent, while the 3 year number is at 32 percent. The 3 year sales CAGR is at 32 percent.

Apollo Micro Systems Ltd

Founded in 1985, Apollo Micro Systems Ltd is a pioneer in the design, development, assembly, and testing of electronic and electromechanical solutions. Headquartered in Hyderabad, the company has strengthened its defence portfolio through key transfers of technology, including warheads for the ULPGM-V2 (UAV-Launched Precision Guided Missile V2). Its drone-related programmes also include participation in Rustom UAV platforms, reinforcing its role in advanced indigenous defence systems.

In the latest quarter the company saw a YoY revenue growth of 40 percent, going from Rs 161 Cr in Q2FY25 to Rs 225 Cr in Q2FY26, while the QoQ went up by 68 percent from Rs 134 Cr in Q1FY26. The YoY Net Profits growth is at 106 percent, going from Rs 16 Cr in Q2FY25 to Rs 33 Cr in Q2FY26, while the QoQ growth stood at 73 percent from Rs 19 Cr in Q1FY26.

The company has a 3 year profit CAGR of 58 percent, while the sales CAGR for the same period is 32 percent. Moreover, the company’s stock has given a 102 percent compounded return in the past 3 years.

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