Summary
Reports say the government may announce a manufacturing-focused incentive scheme under the Drone Shakti initiative in Union Budget 2026-27 to accelerate the indigenous production of unmanned aerial vehicles.
The government is likely to announce a manufacturing-focused incentive scheme under the Drone Shakti initiative in the Union budget for 2026-27 to accelerate the indigenous production of unmanned aerial vehicles, according to a Moneycontrol report. The proposed scheme is expected to run for five years and align with the period of the Sixteenth Finance Commission, the report said.
Here are three drone stocks that stand to benefit should an announcement materialize. Note that this is not a fundamental analysis of these stocks and does not constitute a recommendation.
Zen Technologies
Zen Technologies has established itself as a leader in defence technology during a period of rapid technological advancement and evolving security threats. It 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.
It currently provides 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.
Zen Technologies reported revenue of ₹173.60 crore in Q2 FY26, against ₹241.80 crore a year earlier. Net profit decreased from ₹63.4 crore to ₹62 crore. The company expects FY26 will be a more measured year in terms of financials, primarily due to the timing of order inflows and execution cycles. Its medium-term goal is to generate a total of ₹6,000 crore of 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 out the Zen Technologies fact sheet and latest quarterly results.
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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.
Its drones business has been incorporated as a new subsidiary, Paras Heven Advanced Drones Private Ltd, a joint venture in which Paras Defence holds 51% and Israel’s Heven Drones owns 49%. Together, the companies plan to build advanced logistics and cargo drones in India. These drones aren’t just for the military; they’re meant 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.
The company reported revenue of ₹105.7 crore for Q2 FY26, against ₹87.1 crore a year earlier. Net profit increased from ₹12.7 crore to ₹19.5 crore. It expects to gain from government drives such as Make in India and growing defence budgets aimed at self-reliance and homegrown technology.
The company has bagged several major international deals, including contracts for anti-drone systems, signalling rising global confidence in its technology.
Paras Defence almost completely controls the market for homegrown imaging parts used in space and defence systems, from high-precision sensors to rugged optical units. All this should spur growth over the next few years.
To know more check out the Paras Defence fact sheet and latest quarterly results.
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DroneAcharya Aerial Innovations
DroneAcharya Aerial is a drone solutions company that offers training, defence systems, aerial services, and consulting. Its expertise spans design and manufacturing of next-generation drones purpose-built for agriculture, defence, logistics and infrastructure. It is also a DGCA-certified remote pilot training organization (RPTO).
The first half FY26 for DroneAcharya was largely a period of strengthening overall operational efficiency, resulting in improved margins and a more focused approach. Standalone revenue from operations stood at ₹9.58 crore over this period and total revenue came in at ₹10.78 crore. Ebitda over this period came in at ₹4.62 crore and net profit at ₹1.94 crore.
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. It 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 out the DroneAcharya Aerial Innovations fact sheet and quarterly results.
Conclusion
Investing in drone stocks requires evaluating their market growth potential as well as company-specific risks and regulatory dynamics. Key factors include government policies, technological innovation and financial health. Investors should also evaluate a company’s fundamentals, corporate governance, and stock valuation before making an investment decision.
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.
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