Best Drone Stocks in India in July 2025: HAL, Zen Tech, RattanIndia and More – 5Y CAGR Basis

A significant milestone was achieved in 2021 when the government banned the import of drones (with some exceptions), signaling a shift toward domestic innovation. This move was further supported by the Production Linked Incentive (PLI) scheme for drones and drone components, announced by the Ministry of Civil Aviation on 30th September 2021.

 With a total outlay of ₹120 crores spread over FY 2021-22 to FY 2023-24, the scheme aimed to accelerate homegrown development and manufacturing capacity.

India’s military doctrine is also rapidly evolving, integrating drone warfare as a strategic asset, thanks to years of indigenous R&D and supportive policy reforms. The next wave of growth in the sector is expected to focus on autonomous drones powered by AI-driven decision-making, an area where India is already laying a solid foundation.

In this context, we explore listed drone-related companies in India as of July 2025, sorting them based on key financial indicators such as 5-year CAGR, net profit margin, dividend yield, and debt-to-equity ratio.

Best Drone Stock in India for July 2025 Based on 5Y CAGR

Note: The best drone stocks listed above are sorted and ranked as per 5Y CAGR as of July 1, 2025.

Overview of Best Drone Stocks in July 2025

1. Zen Technologies Limited

Zen Technologies reported a sharp 189% year-on-year increase in consolidated net profit, reaching ₹101.04 crore for the quarter ending March 2025, up from ₹35.99 crore in the same period the previous year.

In a recent development, Zen secured its 54th Indian patent for a technology titled “Single ILU Long Pass Filter.” This innovation marks a significant step in laser-based military training systems, further solidifying the company’s position in India’s expanding defence technology landscape.

Key metrics: 

• ROCE: 86.66%
• ROE: 32.11%

2. RattanIndia Enterprises Limited

RattanIndia Enterprises Ltd., known for its focus on tech-driven sectors such as e-commerce, electric mobility, and drones, has made notable strides in defence applications. The company has successfully developed ammunition payload drones intended for use by the Indian armed forces, reflecting its growing role in strategic technologies.

 In terms of financials, RattanIndia reported a 16.1% year-on-year rise in total income, reaching ₹1,509.86 crore for Q4 FY25. However, the quarter also saw a net loss of ₹355.89 crore.

Key metrics: 

• ROCE: 27.6%
• ROE: 67.54%

3. Hindustan Aeronautics

Hindustan Aeronautics Limited (HAL) reported a consolidated net profit of ₹3,977 crore for Q4 FY25, marking an 8% decline from ₹4,309 crore in the corresponding quarter of the previous year.

Despite the dip in earnings, HAL continues to invest in innovation, announcing its support for the Systems Testing and Research for Advanced Materials Foundation, aimed at enhancing India's capabilities in cutting-edge aerospace materials and testing infrastructure.

Key Metrics

• ROCE: 26.04%
• ROE: 28.91%

4. Larsen and Toubro Ltd

Larsen & Toubro (L&T) is advancing its footprint in the drone space through indigenous Tactical UAV solutions, including fixed-wing and VTOL platforms, with a focus on high-altitude operations. These UAVs are also being developed with potential for future naval deployment, showcasing L&T’s multi-domain capabilities.

Financially, L&T reported a strong performance in Q4 FY25, with consolidated profit after tax (PAT) rising 25% YoY to ₹5,497 crore, up from ₹4,396 crore in Q4 FY24.

Key metrics: 

• ROCE: 18.91%
• ROE: 13.8%

5. DCM Shriram Ltd

DCM Shriram Ltd. posted a strong performance in Q4 FY25, with consolidated net profit rising 51.9% year-on-year to ₹178.9 crore, up from ₹117.8 crore in the corresponding quarter last year.

In a strategic move, the company’s board has approved the acquisition of 100% ownership in Hindusthan Specialty Chemicals Ltd (HSCL) for ₹375 crore. This acquisition is set to enhance DCM Shriram’s capabilities in the Advanced Materials segment, aligning well with its existing chemicals portfolio. The deal is subject to necessary regulatory and customary approvals.

Key metrics: 

• ROCE: 12.09%
• ROE: 7.03%

Top Drone Companies in July 2025 Sorted by Net Profit Margin

Note: The best drone stocks listed above are sorted and ranked as per net profit margin as of July 1, 2025.

Top Drone Sector Stocks in July 2025 Sorted by Debt-to-Equity Ratio

Note: The best drone stocks listed above are sorted and ranked as per debt-to-equity ratio as of July 1, 2025.

Read More: Best EV Stocks in July 2025 Based on Market Cap, 5Y CAGR: Tata Motors, Samvardhana and More.

Conclusion

While financial performance of drone companies varies across metrics such as 5-year CAGR, net profit margin, and debt-to-equity ratio, each of these companies contributes uniquely to India's evolving drone landscape. As the sector continues to mature, these businesses may see new opportunities as well as operational challenges. Investors and industry observers should track both policy trends and financial fundamentals to make informed decisions.

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 own 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.