Drone Stocks Surge up to 17% Amid India-Pakistan Tensions Following ‘Operation Sindoor’

Drone manufacturing companies witnessed a significant rise in their stock prices on Friday, May 9, as tensions escalated between India and Pakistan after the launch of ‘Operation Sindoor’.

Defence and Drone Companies Rally

Shares of drone makers such as IdeaForge Technology, Droneacharya Aerial Innovations, Paras Defence, and Zen Technologies recorded gains of up to 17% in Friday’s trading session, reflecting heightened investor interest in military-related assets.

At 11:53 AM, IdeaForge Technology was up 18.03%, trading at ₹455.90 per share on the NSE. Meanwhile, Zen Technologies’ shares were also in the green, trading 4.99% higher at ₹1,406.40 apiece on the NSE.

During the trading session, stocks of Droneacharya and Zen Technologies reached their 5% upper circuit limits.

The broader defence sector also saw positive movement. Bharat Dynamics was up 8%, Bharat Electronics rose 4%, and Mazagon Dock Shipbuilders gained 2.5%.

Military Strike Boosts Market Sentiment

This surge in defence-related stocks followed India’s missile strikes on Wednesday targeting nine terror camps in Pakistan and Pakistan-Occupied Kashmir (PoK).

These strikes, part of ‘Operation Sindoor’, were in retaliation for a terrorist attack in Jammu and Kashmir’s Pahalgam that claimed the lives of 26 civilians.

A day later, on Thursday night, India successfully thwarted Pakistan’s attempt to hit military installations along the border.

Market Indices Decline Despite Sectoral Gains

Despite the upward momentum in drone and defence stocks, benchmark indices saw a steep fall in early trade on Friday. The SENSEX dropped 910 points to 79,423, and NIFTY fell 311 points to 24,962.

While the overall market remained under pressure, select pockets such as defence and drones displayed a steady rally.

The growing prominence of drones in military strategy—beyond traditional fighter jets and missile systems—is gaining attention on the battlefield and in the stock market. As tensions with Pakistan grew, Indian drone stocks became key beneficiaries.

IdeaForge Leads the Rally

IdeaForge Technology led the surge among drone stocks, with its shares rising over 17% during intraday trade on Friday. The company has posted a gain of more than 21% over the past week.

Despite a six-month decline of 26% and a 27% drop year-to-date, investor sentiment turned optimistic due to the increasing role of drones in India’s defence strategy.

Zen Technologies Hits Upper Circuit

Zen Technologies, known for its defence simulators and combat training solutions, also hit its 5% upper circuit during the day. Its stock showed a modest 2.5% increase over the past week.

Despite being down 43% in 2025 so far, the company has delivered a 52% gain over the past year, underlining its long-term potential.

Paras Defence Continues Strong Momentum

Paras Defence & Space Technologies was another significant gainer in the defence sector. The company’s shares rose nearly 6% in intraday trade on Friday.

It has posted a 7% gain over the past week and an impressive 54% increase over the last month. In the six-month timeframe, the stock surged 43%, reflecting strong investor confidence in its growth trajectory in 2025.

HAL and BEL Attract Attention

Hindustan Aeronautics Limited (HAL), a major defence public sector undertaking, saw a modest 1.5% intraday increase.

While its rise was not as sharp as the smaller firms, HAL has gained more than 11% over the past month and nearly 17% in the past year, indicating steady growth.

Bharat Electronics Limited (BEL) also gained 2.5% on Friday. Over the last month, BEL’s stock is up more than 12%, and it has gained nearly 39% over the past year. However, its six-month and year-to-date performance has remained relatively stable.

Drone Warfare Takes Center Stage

India’s precision strikes this week reportedly included the use of Harop suicide drones to disable Pakistani air defence systems near Lahore and Multan.

This strategic deployment highlighted the rising relevance of drone warfare in modern military operations and triggered a notable shift in investor focus towards drone technology firms.

As geopolitical tensions continue to influence market dynamics, defence and drone stocks are likely to remain in the spotlight, drawing continued investor interest.