Best Drone Stocks in India For March 2025: Zen Technologies, Rattanindia Enterprises and More- Based on 5Y CAGR

India’s drone industry is witnessing rapid expansion, with growing opportunities for investors across sectors such as agriculture, logistics, defence, and entertainment. As drone applications continue to evolve, industry experts predict substantial growth, supported by rising demand and government initiatives aimed at making India a global leader in drone technology.

The Indian drone market is expected to reach ₹120-150 billion (USD 1.5-1.9 billion) by 2026, with infrastructure and agriculture currently being the most prominent sectors utilising drones. However, new use cases are emerging, driving broader adoption across multiple industries. The surge in drone technology is backed by increasing investments, government incentives, and a wave of startups developing innovative applications for drones.

Best Drone Stock in March 2025 Based on 5Y CAGR

Note: The best drone stocks list is as of February 25, 2025. The stocks are sorted based on the 5Y CAGR. The following parameters have been used to screen the stocks.

Overview of Best Drone Stocks in March 2025

1. Zen Technologies Limited

Founded in 1996, Zen Technologies Limited specialises in developing combat training and counter-drone solutions for defence and security forces, supporting the Indian armed forces, state police, and paramilitary units with advanced, innovative technologies for enhanced operational efficiency.

In Q3 FY25, the company reported a net profit of ₹38.62 crore, up 22% YoY from ₹31.67 crore. However, a 40.8% decline from ₹65.24 crore in Q2 FY25, driven by lower earnings, raised investor concerns.

Key metrics: 

• Earning per share (EPS): ₹23.88
• Return on equity (ROE): 13.49%

2. RattanIndia Enterprises Limited

RattanIndia Enterprises Limited, the flagship of the RattanIndia Group, operates across diverse tech-driven sectors, including e-commerce, electric vehicles, drones, and fintech. Its key businesses include Cocoblu Retail, Revolt Motors, Neobrands, NeoSky India, Wefin, and Throttle Aerospace Systems.

In Q3 FY25, RattanIndia Enterprises reported a consolidated net loss of ₹170.4 crore in the December 2024 quarter, compared to a profit of ₹187.3 crore in the same quarter the previous year.

Key metrics: 

• EPS: ₹2.75
• ROE: 24.22%

3. Hindustan Aeronautics

Hindustan Aeronautics Limited (HAL), one of the world’s largest aerospace and defence companies, was founded in 1940 by Walchand Hirachand. Fully government-controlled since 1942, HAL designs and manufactures aircraft, helicopters, and engines, achieving Maharatna status in 2024.

HAL reported a Q3 FY25 net profit of ₹1,43,979 lakh. The Board announced a ₹25 per share interim dividend, with a record date of February 18 and payout by March 14, 2025. The results cover the quarter ending December 31, 2024.

Key metrics: 

• EPS: ₹129.35
• ROE: 27.83%

4. Bharat Electronics Ltd

Bharat Electronics Limited (BEL), a PSU under the Ministry of Defence, was established in 1954. It manufactures defence electronics like radars and communication systems, along with civilian products such as telecom solutions, medical electronics, and electronic voting machines.

Bharat Electronics Limited (BEL), a Navratna Defence PSU, reported a sharp rise in Q3 FY25 net profit, reaching ₹1,316.06 crore, up from ₹893.30 crore in the same quarter last year.

Key metrics: 

• EPS: ₹6.79
• ROE: 28.55%

Best Drone Stock in March 2025 Based on Market Cap

Note: The best drone stocks list here is as of February 25, 2025. The stocks are sorted based on the market cap. 

Best Drone Stocks in March 2025- Based on Net Profit Margin

Note: The best drone stocks list here is as of February 25, 2025. The stocks are sorted based on the net profit margin. 

Government Initiatives to Strengthen Drone Ecosystem

Recognising the sector’s potential, the Government of India has set an ambitious goal to establish the country as a global hub for drone technology by 2030. To accelerate this vision, the government is implementing liberal policies that encourage both businesses and individuals to embrace drone adoption.

One of the key measures includes attracting ₹50 billion (USD 6.7 billion) in investments over the next three years, a move expected to generate over 10,000 jobs.

Additionally, the government is strengthening support for Micro, Small, and Medium Enterprises (MSMEs) by easing eligibility criteria under the Production-Linked Incentive (PLI) scheme, thereby boosting participation and growth within the industry.

With sustained policy support, rising investments, and technological advancements, India’s drone industry is poised for transformative growth, offering significant opportunities for investors and businesses looking to capitalise on this booming sector.

Key Considerations Before Investing in India’s Booming Drone Industry

1. Technological

As India’s drone industry experiences rapid expansion, investors are increasingly looking at drone stocks as a promising opportunity.

2. Market Factors

However, before making investment decisions, it is essential to evaluate several factors that could impact returns.

3. Regulatory

From regulatory challenges to technological advancements, understanding the industry’s landscape is crucial for long-term gains.

4. Understanding the Regulatory Landscape

The drone industry in India is governed by the Directorate General of Civil Aviation (DGCA), which has a complex and evolving regulatory framework. Investors must stay informed about any policy changes, as stricter regulations could impact the growth and operations of drone companies.

The Indian government is still in the process of refining rules to ensure the safe and efficient use of drones, meaning new policies could either boost or hinder the industry’s progress.

5. Assessing Market Demand and Innovation

The demand for drones is on the rise across multiple sectors, including agriculture, logistics, defence, and entertainment. However, investors should closely examine long-term trends and market projections to assess the sector’s true growth potential.

Companies that are leading in innovation—developing advanced drone technology and software—are likely to have a competitive edge. Technological challenges, such as improving battery life, navigation systems, and drone reliability, remain key areas that companies must address to sustain growth.

Conclusion

Despite strong growth potential, the drone industry comes with its share of challenges. Apart from regulatory hurdles, companies face intense competition, requiring significant investments in research and development to maintain an edge. Additionally, public concerns around privacy and safety could influence the pace of widespread drone adoption.

Given these risks, experts suggest that investors conduct thorough research into regulations, technological advancements, and market competition before making investment decisions. Diversification can also help mitigate risks associated with the evolving drone sector. While the industry presents significant opportunities, a well-informed approach will be essential for maximising long-term returns.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.