India's drone ecosystem is experiencing rapid expansion beyond traditional defense applications. According to reports from The Financial Express, drones are now being used for mining surveys, power-line inspections, agricultural spraying, land mapping, logistics, and border surveillance. The India Brand Equity Foundation (IBEF) projects India's drone market could reach ₹5.20 lakh crore by 2030, growing at an annual rate of 7.3%. This broader environment, including modules, software, services, and exports, could become even bigger than the aircraft manufacturing segment alone.
While investors typically focus on drone manufacturers, the analysis suggests electronics companies may benefit more significantly. As reported by The Financial Express, modern drones require aircraft controllers, communication systems, radio frequency components, fixed electronics, routing systems, sensors, electronic assemblies, and power systems. The distinction is important because India is pursuing electronics manufacturing, defence indigenisation, semiconductor expansion, and drone localisation simultaneously. Three companies stand out: Kaynes Technology, Cyient DLM, and Centum Electronics, all of which currently earn negligible revenue from drones but possess relevant capabilities.
According to The Financial Express, Kaynes Technology has transformed rapidly with revenue growing to ₹3,626 crore in FY26 from ₹706 crore in FY22, representing a compounded annual growth rate (CAGR) of more than 48% over the past three years. The company serves industrial and locomotive electronics, railroads, health devices, aerospace, and defence sectors. As reported, revenue grew at a CAGR of 48% over the past three years, while profit grew at 57%, with an operating margin of 15.8% in FY26. The company has a market capitalization exceeding ₹22,000 crore and an order book of ₹8,366 crore, providing almost two years of revenue visibility.
As reported by The Financial Express, Cyient DLM derives nearly 60% of its revenue from aerospace and defence, offering end-to-end design, certifications, and production solutions for UAVs and drone-based systems. The company's revenue in FY26 was ₹1,261 crore, though it declined 17% YoY compared to ₹1,520 crore in FY25. Aerospace contributes nearly 43% of revenues, while defence adds another 27%. The company trades at a P/E of 58x, almost at par with the industry median at 59x as of July 10, 2026. According to the report, the company has return on capital employed of 11.4% and won several aerospace manufacturing deals.
According to The Financial Express, Centum Electronics has transformed with revenue reaching ₹953 crore in FY26 from around ₹740 crore in FY25, with operating margins improving to 14.22% and ROCE recovering to 25.6%. The company focuses on mission electronics, sensors, RF systems, defence electronics, avionics, and aerospace subsystems, including advanced electronics for unmanned aerial platforms and anti-drone systems. As reported, profit grew at a CAGR of 117% while the share price grew at 38% over the past three years. The company trades at a P/E of 52x, much lower than the sector median of 59x as of July 10, 2026.
