From NIBE to BEL: Six Defence Stocks to Watch as India Accelerates Indigenous UAV, Counter-Drone Plans

India is accelerating its push for indigenous drones and counter-drone systems, bringing several listed defence companies into focus. Prime Minister (PM) Narendra Modi also highlighted the need for India to develop and export such technologies during his Independence Day address on August 15, 2026.

The development comes as the government moves from policy support towards actual defence procurement, creating opportunities for companies involved in drones, loitering munitions, anti-drone systems, radar and electronic warfare.

India's Indigenous Drone Push: Key Developments

On August 14, the Ministry of Defence signed contracts worth around Rs 1,577 crore for loitering-munition systems for the Indian Army. Earlier, on July 3, the Defence Acquisition Council cleared capital procurement proposals worth around Rs 52,000 crore. The proposals included the Army's Akash Tarang anti-UAV electronic warfare system, a jet-based kamikaze drone system and a Naval Shipborne Unmanned Aerial System.

Stocks To Watch: Six Defence Stocks Linked to India's Drone Push

NIBE: The company has the most direct link to the latest Army order. On August 14, NIBE disclosed a Rs 563.35 crore order from the Indian Army for 30 sets of loitering-munition systems, including 300 loitering munitions, testing equipment and accessories. The company identified the platform as Vayuastra.

Zen Technologies: Zen is focused on counter-drone and anti-UAV technologies. It reported Q1 FY27 revenue of Rs 141.64 crore, EBITDA of Rs 57.88 crore and profit after tax of Rs 34.46 crore.

ideaForge: The company manufactures UAVs and is developing technologies including attack drones and loitering munitions. Q1 FY27 revenue stood at Rs 68.59 crore, up 436.7% year on year, although it reported a net loss of Rs 2.59 crore.

Data Patterns: The company supplies defence technologies including radar, electronic intelligence and jamming systems. It reported Q1 FY27 revenue of Rs 116 crore and PAT of Rs 22.1 crore. It had around Rs 530 crore in cash, bank balances and investments and no net debt as of June 30.

Bharat Electronics (BEL): BEL has large-scale exposure to radar, electronic warfare and other defence electronics. It reported Q1 FY27 revenue of Rs 5,533.06 crore and PAT of Rs 1,048.33 crore.

Paras Defence: The company has exposure to anti-drone systems, drone platforms and payloads. Q1 FY27 revenue rose 38% year on year to Rs 128 crore, while consolidated PAT increased 40% to Rs 21 crore.

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