Defence stocks, drone manufacturers surge up to 14% as India-Pakistan crisis escalates

Shares of ideaForge Technologies Ltd. and Zen Technologies Ltd. surged up to 14% on Friday, May 9, as the crisis between India and Pakistan escalated on the Northern and Western borders on the intervening night of May 8 and May 9.

While shares of ideaForge are up 14%, those of Zen Technologies are up in a 5% upper circuit.

ideaForge also reported its March quarter results last evening, where its revenue declined by 80% from the same quarter last year, while the company reported a net loss of ₹26 crore from a net profit of ₹10 crore during the same quarter last year.

For the full year, ideaForge's revenue halved due to a shift in order timelines and delayed government spending. The company has also joined forces with Resonia (Sterlite Group) to transform the energy sector with drones and robotics technology.

Zen Technologies in March had received orders from the Defence Ministry for Integrated Air Defence Combat Simulator.

Analysts that CNBC-TV18 spoke to said that armed forces will require more drones and unmanned systems going forward.

The immediate requirement will be for defence electronics and consumables, followed by vehicles.

Along with the drone manufacturers, shares of other defence stocks like Bharat Dynamics (up 8%), Bharat Electronics (up 4%), Mazagon Dock Shipbuilders (up 2.5%), are also trading with gains on Friday.

Shares of Zen Technologies are trading 5% higher at ₹1,406.4. The stock has nearly halved from its 52-week high of ₹2,627.

Shares of ideaForge are trading 13.5% higher at ₹438. The stock is also down 50% from its 52-week high, is trading below its IPO price of ₹672 per share and nearly 70% below its all-time high of ₹1,344, which is its listing price, back in 2023.

Follow all the updates of the India-Pakistan conflict right here.