DroneAcharya, ideaForge, Paras Defence gain upto 5% on March 21; here's why

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Drone stocks rise: Drone-related stocks gained on Friday, March 21, 2025, with some rallying up to 5 per cent during intraday trading, on BSE. DroneAcharya Aerial Innovations led the charge, hitting the 5 per cent upper circuit limit at ₹67.96. Other stocks that saw gains included Paras Defence (up 2.57 per cent at ₹1,019), ideaForge Technologies (up 3.48 per cent at ₹396.90), Hindustan Aeronautics Limited (up 2.39 per cent at ₹3,908.95), and Zen Technologies (up 1.73 per cent at ₹1,315).

 

The surge in these stocks followed the news that the Goods and Services Tax (GST) Council is likely to announce a uniform 5 per cent GST rate on all commercial-use drones in its upcoming meeting. The move is expected to resolve confusion surrounding the classification of unmanned aircraft systems (UAS), or drones, and bring much-needed clarity to the industry.  ALSO READ | Stock Market LIVE: Sensex climbs 240 pts to 76,600; Nifty at 23,260; Pharma, Health gain

 

Such a change would be a major relief for India’s growing drone sector, which includes around 488 drone companies that have collectively raised $518 million in funding, according to market intelligence platform Tracxn.

 

At present, drones are subject to different GST rates based on their classification under various HSN (Harmonized System Nomenclature) codes. Drones intended for commercial use, categorised as aircraft under HSN code 8806, are taxed at 5 per cent. 

 

However, drones equipped with integrated cameras fall under HSN code 8525, classified as digital cameras, and are taxed at 18 per cent. Drones meant for personal use, which are also classified under HSN 8806, currently face a much higher tax rate of 28 per cent.  ALSO READ | Manappuram surges 6%; nears record high on strategic deal with Bain Capital

 

Last week, ideaForge said that it was planning higher R&D spend this fiscal year, as it develops technology and product platforms in the unmanned aerial vehicle (UAV) space. With the government committed to fostering domestic drone research, development, and manufacturing, continuous innovation through product and market research is essential for sustained growth in the UAV sector, the company said.

 

In February, official data revealed that more than 29,500 drones were registered in India, with the national capital having the maximum number at 4,882, followed by Tamil Nadu and Maharashtra at 4,588 and 4,132, respectively. The data from the Directorate General of Civil Aviation (DGCA) updated till January 29 showed that there were 29,501 registered drones.

 

At 9:38 AM, DroneAcharya Aerial Innovations shares remained locked in the 5 per cent upper circuit at ₹67.96. Paras Defence share was up 1.77 per cent at ₹1,011, ideaForge Technologies share was trading 2.48 per cent higher at ₹393.05, Hindustan Aeronautics Limited was up 1.24 per cent at ₹3,865, while Zen Technologies stock rose 0.67 per cent at ₹1301.25. In comparison, BSE Sensex was trading 0.22 per cent higher at 76,517.30 levels.