Drones have become central to modern warfare. From surveillance and intelligence gathering to precision strikes and electronic warfare, their role has expanded across conflicts in Ukraine, West Asia, and closer home.
India’s $2-Billion Military Drone Inflows
To further boost domestic production and strengthen drone capabilities, India is reportedly preparing its largest-ever military drone purchase, with over $2 billion (about ₹19,000 crore) worth of domestic orders expected.
This shift is also opening a large opportunity for India’s drone ecosystem. As per JM Financial, the market opportunity could grow from ₹32,600 crore in 2025 to ₹1.77 lakh crore by 2030, driven by defence procurement, homeland security, commercial use cases, and exports.
Against this backdrop, we discuss three listed players with a big presence in drone and electronic warfare. Let’s take a look…
#1 IdeaForge Technology
IdeaForge Technology is an AI and robotics company that specializes in designing, developing, and manufacturing aerial robotics, specifically unmanned aerial vehicles (UAVs) or drones. The core of its business is building platforms for Intelligence, Surveillance, and Reconnaissance (ISR) Drones.
It manufactures a variety of airframes, including backpackable quadcopters, backpackable hybrid VTOL (Vertical Take-Off and Landing) UAVs, and vehicle-portable hybrid VTOL UAVs. Key drone models include the SWITCH, NETRA, Q6, and ZOLT.
The company’s systems handle signal jamming, spoofing, degraded communication, and GNSS/GPS-denied conditions. For this, it relies on its own homegrown technology stack, which includes proprietary autopilots, communication technology, and navigation solutions.
Order Book Visibility: Why the FY27 Execution Timeline is Crucial
IdeaForge has commenced FY27 with an opening order book of ₹310 crore, providing revenue visibility for approximately 1.5 years. However, the company expects to execute its entire open order book within Q1FY27. Management has also projected a stable blended margin of 50% to 55% for the current year.
The company is well-positioned to capitalize on the upcoming procurement cycle from the Indian Armed Forces. Management describes this as a “multi-billion dollar opportunity.” Some of these opportunities have already received approval from the Defence Production Board.
From ISR Platforms to Offensive Capabilities: Capitalizing on Armed Forces Procurement
Key growth areas in defence include combat and tactical drones, electronic warfare resilience. IdeaForge is expanding into offensive capabilities, including loitering munitions, long-range strike platforms, and kamikaze systems. It views the foundational ISR technology as a natural stepping stone to integrating strike capabilities.
The company sees its homegrown, field-tested electronic warfare systems as a key competitive advantage. These systems can handle jamming, spoofing, and GPS-denied environments, capabilities that are increasingly becoming mandatory in procurement programs. IdeaForge is aggressively diversifying its geographic footprint.
Global Footprint Expansion: Entering US and NATO Supply Chains
To this end, it received its first US order to support student safety for a police department in a Texas school district. To support local production and sales, IdeaForge has formed a joint venture with a US partner, First Breach. Furthermore, it demonstrated its drones to the U.S. Department of Defense in extreme cold weather conditions in Alaska.
IdeaForge became the first Indian drone company to train NATO forces at the US National Test Pilot School. It has also signed a strategic MOU with Digital Media Professionals Inc. to develop AI drones and enter the Japanese market. Collectively, these export markets can unlock new opportunities for the company.
Financial Turnaround: Behind the 77.6% Revenue Surge
From a financial perspective, the company’s revenue grew by 77.6% year-on-year to ₹226 crore. IdeaForge also reported a financial turnaround with positive EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) of ₹27 crore with a margin of 12%. Its losses also reduced to ₹17 crore in FY26, down from ₹62 crore in FY25.
Despite a turnaround, management explicitly cautioned that “quarterly lumpiness,” working capital cycles, procurement timing, and execution risks will remain realities of the business. Therefore, it remains to be seen whether this improvement in performance persists or fades away.
IdeaForge Share Price
#2 Paras Defence and Space
Paras Defence manufactures integrated electronic systems for aircraft, as well as optical and mechanical components for airborne navigation and surveillance.
Missile and EW Footprint: Powering India’s Frontline Strategic Platforms
Paras supplies high-precision optical systems, heavy mechanical structures, titanium assemblies, and specialized flow-formed tubes for major missile programs like Brahmos, Akash, Astra, and Agni. In addition, the company participates in army and naval EW programs like Samyukta and Shakti.
These are designed to detect and jam enemy radars. It provides ruggedized networking tools, advanced cooling assemblies for radar systems, and Electromagnetic Pulse-shielded rooms and racks to protect critical military infrastructure.
Cross-Border Capital: Indo-Israeli Alliances & Cargo Drone Scaling
Paras is actively expanding its footprint in both drone technology development and anti-drone defense systems. It is a key supplier of critical optical systems for Unmanned Aerial Vehicles (UAVs) and drones. Paras delivers dedicated drone-based solutions for aerial surveillance, payload delivery, and precision farming.
The company has multiple partnerships and joint ventures (JV) that solidify its strong position in the drone sector. It has a collaboration with the Israeli firm MicroCon Vision, making it the exclusive supplier of advanced, cost-effective drone camera technology in India. This will help boost indigenous content for surveillance systems.
Additionally, a JV with Israel’s Controp Precision aims to manufacture Electro-Optical/Infrared (EO/IR) systems for platforms, including drones, under the “Make in India” initiative. It has also entered a joint venture to manufacture hydrogen-powered logistics and cargo drones.
These drones feature a high proportion of indigenous content and offer over 12 hours of flight endurance, with a payload capacity exceeding 22 kilograms. Through this, Paras aims to capture the growing demand for high-altitude drones capable of carrying heavy payloads.
Evaluating the ₹11,000-Crore Market Pipeline
The company views these collaborations as a significant multi-year growth driver. Paras estimates a total market opportunity of ₹6,000 crore over the next five years, specifically for its optical systems, which include drone cameras. In addition, the company sees a ₹3,000 crore opportunity in optical telescopes and ₹2,000 crore in advanced electronics and avionics.
From a financial standpoint, the company reported 30.7% year-on-year revenue growth to ₹476.6 crore in FY26. Operating profit surged by 20% to ₹120 crore with margins at 25%. Net profit also grew by 45.9% to ₹89 crore. Its ₹928 crore order book provides revenue visibility of approximately 2 years (1.9 years).
Paras Share Price
#3 Zen Technologies
Zen Technologies has a robust and rapidly expanding presence in the drone sector, with a strong focus on counter-drone systems, training, and interceptor drones. According to management, its anti-drone systems are among the top three in the world, if not the absolute top. Its system can detect and jam across a wide frequency range, from 70 megahertz to 12 gigahertz.
Asymmetric Warfare: Neutralizing $30,000 Threats with Cost-Effective Interceptors
Observing the economics of recent conflicts where $3 million missiles were used to destroy $30,000 attack drones like the Shahed, Zen developed a cost-effective countermeasure. It is launching the HyperStrike interceptor drone, a $10,000 drone capable of flying at 400 km/hour.
This product is designed to intercept and destroy threats such as the Shahed. Production is slated to begin in FY27 with an initial rate of 5,000 units per shift per month, easily scalable to 15,000 units. Zen expects this interceptor to become the largest product in its portfolio within the next two years.
Inside Zen’s High-Altitude AI Tech Pipeline
Zen also has a presence in anti-drone simulators. This advanced training platform allows the armed forces to practice detecting, tracking, and neutralizing aerial threats in a realistic virtual environment without tying up actual combat equipment.
Further, it has developed specialized 30mm smart ammunition featuring radio-frequency-based programming and airburst capability. All in all, these products are heavily supported by Artificial Intelligence, making Zen’s drone and anti-drone technologies highly automated and adaptive to the changing realities of modern drone warfare.
Evaluating the Record ₹1,336-Crore Order Book
As of 31 March, 2026, the company’s consolidated order book closed at a record ₹1,336 crore, providing revenue visibility of around 2 years. Of this, roughly ₹1,000 crores worth of orders will be executed in FY27. Further, Zen anticipates an acceleration in order inflows throughout FY27.
Management states that this comprises approximately ₹1,500 crore from regular tenders and potentially a few thousand crore rupees from large, single-vendor tenders. About 55% of this pipeline is expected to be driven by counter-drone systems, with training simulators accounting for the remaining 45%.
Zen Share Price
Risk Concentration: Evaluating Pure-Play vs Diversified Order Books
| Company | Revenue (₹ Cr) | Order Book (In ₹ Cr) | Orderbook to Sales (X) |
| IdeaForge | 226 | 310 | 1.4 |
| Paras | 476.6 | 928 | 1.9 |
| Zen | 688 | 1,336 | 1.9 |
As shown in the table, the order book positions for Paras and Zen are relatively strong. However, both companies also provide services to various segments of the defense sector, helping them secure more orders. However, IdeaForge’s presence is concentrated in the drone sector, making the order book position relatively vulnerable to any slowdown.
Comparative Analysis: Premium Valuations vs Return Profile Realities
Paras stands out with strong Return on Capital Employed (ROCE) and Return on Equity (ROE). Zen’s performance in FY26 had fallen, thereby moderating its return ratios. As IdeaForge is currently loss-making, we have used the Market Cap-to-Sales Multiple for better comparison.
Accordingly, IdeaForge trades in line with its 3-year historical median multiple, while both Paras and Zen trade at a slight premium.
| Particulars | Market Cap-to-Sales Multiple (X) | Return Ratios | ||
| Company | 3Y Median | ROCE (%) | ROE (%) | |
| IdeaForge | 15.7 | 15.7 | NA | NA |
| Paras | 14.2 | 13.1 | 16.9 | 12.6 |
| Zen | 22.1 | 18.3 | 16.2 | 10.7 |
| Industry | – | 9.6 | 15.5 | 12.6 |
| Source: Screener.in (As of 3rd June 2026) | ||||
As drones become more important in warfare, opportunities for companies operating in this space are also expanding. With an expanding market size and expected military drone orders worth over $2 billion, players in the drone ecosystem remain poised to benefit.
That said, order execution, margins, and valuations will remain important factors to track. In the meantime, it would be beneficial to keep these on your watchlist to see how the opportunity materialises and whether execution keeps pace with the market potential.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were unavailable have we used an alternative, widely accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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