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

As India strengthens its focus on technological advancement and self-reliance in defence, the domestic drone industry continues to see strong momentum. 

The Ministry of Electronics and IT, along with Drone Federation of India, launched the NIDAR challenge under the SwaYaan program to promote research and skill development.

With applications ranging from military to logistics and agriculture, drone-related companies are benefiting from both government support and rising investor interest.

In this blog, we explore the top drone stocks in India as of May 2025, ranked by their 5-year compound annual growth rate (CAGR) and other key financial metrics.

Best Drone Stock in May 2025 Based on 5-Year CAGR

Note: The best drone stocks list, sorted based on the 5-year compound annual growth rate (CAGR), is as of May 7, 2025.

Overview of Best Drone Stocks in May 2025

1. Zen Technologies Limited

Zen Technologies Limited, founded in 1996, focuses on creating combat training systems and anti-drone technologies for defence and security forces. In Q3 FY25, the company posted a net profit of ₹38.62 crore, reflecting a 22% rise compared to ₹31.67 crore in the same quarter last year.

Recently, Zen Technologies received a ₹152 crore order from the Ministry of Defence to deliver an Integrated Air Defence Combat Simulator (IADCS) designed for the L70 gun system.

Key metrics: 

• ROCE: 39.21%

• ROE: 32.11%

2. RattanIndia Enterprises Limited

RattanIndia Enterprises Limited, the leading entity of the RattanIndia Group, operates across various technology-driven sectors including e-commerce, electric mobility, drones, and financial technology. Its key business arms comprise Cocoblu Retail, Revolt Motors, Neobrands, NeoSky India, Wefin, and Throttle Aerospace Systems.

In Q3 FY25, the company reported a consolidated net loss of ₹170.4 crore for the December 2024 quarter, a sharp reversal from the ₹187.3 crore profit it posted during the same period the previous year.

Key metrics: 

• ROCE: 63.45%

• ROE: 67.54%

3. Hindustan Aeronautics

Hindustan Aeronautics Limited (HAL), one of the world’s largest aerospace and defence companies, was founded in 1940 by Walchand Hirachand. 

Hindustan Aeronautics Limited (HAL) reported provisional revenue of ₹30,400 crore for the fiscal year ending March 31, 2025, despite delays in delivering its Light Combat Aircraft (LCA) and Advanced Light Helicopter (ALH). During FY25, the company also bagged fresh manufacturing contracts worth ₹1.02 lakh crore and ROH agreements totalling ₹17,500 crore.

Key metrics: 

• ROCE: 24.58%

• ROE: 28.91%

4. Bharat Electronics Ltd

Bharat Electronics Limited (BEL), a government-owned enterprise under the Ministry of Defence, founded in 1954, produces a range of defence electronics, including radars and communication systems, as well as civilian products like telecom equipment, medical devices, and electronic voting machines. 

In FY25, BEL secured orders amounting to ₹18,715 crore, falling short of its initial target of ₹25,000 crore.

Key metrics: 

• ROCE: 30.17%

• ROE: 26.37%

Best Drone Stock in May 2025 Based on Net Profit Margin

Note: The best drone stocks list here is as of May 7, 2025. The stocks are sorted based on the Net Profit Margin. 

Best Drone Stocks in May 2025- Based on Debt to Equity Ratio

Note: The best drone stocks list here is as of May 7, 2025. The stocks are sorted based on the debt-to-equity ratio. 

Read More: Best Lab-Grown Diamond Stocks in May 2025: Sky Gold, Senco and More – 5 yr CAGR Basis.

Conclusion

With government support and rising demand across commercial and defence segments, the listed companies offer promising opportunities for investors.

As of May 2025, these stocks stand out based on growth, profitability, and capital structure. Investors looking for exposure to India’s high-growth tech-defence ecosystem should keep a close eye on developments in this space.

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.