Drone stock hits 10% Upper circuit after receiving orders from Indian Army to set up drone training lab

Synopsis:
Drone Destination Limited received ₹3.5 crore orders from the Indian Army for drone training and upskilling projects, reinforcing its role in advancing defense drone technology.

This Penny Drone Stock, engaged in providing drone pilot training, aerial survey and mapping, agricultural drone spraying, drone sales, repair, renting, and consultancy services, jumped 10 percent after receiving three supply orders from the Indian Army for establishing an FPV Drone Training Lab.

With a market capitalization of Rs. 212.28 crores, the share of Drone Destination Limited has reached an intraday high of Rs. 87.95 per equity share, rising 10 percent, hitting the upper circuit from its previous day’s close price of Rs. 80. Since then, the stock has retreated and is currently trading at Rs. 87 per equity share. 

Reason Behind the Surge

Drone Destination Limited has announced that it has received three supply orders worth Rs. 3.5 crore from the Indian Army. These orders are for projects related to drone training and upskilling, highlighting the company’s growing role in supporting defense technology initiatives in India.

As part of the project scope, the company will establish an FPV Drone Training Lab, set up a Drone Training School to train 200 officers, and create a Drone Battlefield Manoeuvring Arena. This collaboration reflects Drone Destination’s strong commitment to strengthening the Indian Armed Forces’ capabilities and advancing modern drone technology for defense applications.

Company Overview

Drone Destination Limited was established in 2019 and is headquartered in New Delhi. The company is a pioneering player in India’s drone technology sector, specializing in drone pilot training, aerial services such as survey and mapping, agricultural solutions, and asset inspections. 

The company became India’s first DGCA-authorized Drone Training Organisation under the new Drone Rules of 2021 and is a leader in certified drone pilot education and commercial drone services across the country.​

Drone Destination Limited services include land mapping for government projects such as the PM Svamitva Yojana, disaster management, incident response, and precision agriculture spraying in collaboration with major clients like IFFCO, Reliance, Tata, Airbus, and various state governments.

The company has a robust presence, with training centers in more than 12 Indian cities and partnerships with reputed organizations like Indira Gandhi Rashtriya Uran Akademi. Drone Destination has trained over 4,000 drone pilots, including more than 600 women, aiming to increase this number to over 10,000 in the next two years.

Recent quarter results

Coming into financial highlights, Drone Destination Limited’s revenue has decreased from Rs. 26.35 crore in H2 FY24 to Rs. 11.06 crore in H2 FY25, which is a drop of 58.03 percent. The net profit of the company turned into a net loss, from a net profit of Rs. 6.69 crore in H2 FY24 to a net loss of Rs. 7.83 crore in H2 FY25.

Drone Destination Limited’s revenue has grown at a CAGR of 113.46 percent over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at -10.5 percent and -11.2 percent, respectively. Drone Destination Limited has an earnings per share (EPS) of Rs. -2.79, and its debt-to-equity ratio is 0.27x.

Written By – Nikhil Naik

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Drone stock hits 10% Upper circuit after receiving orders from Indian Army to set up drone training lab appeared first on Trade Brains.