Drone stock rebounds 8% from day’s low after receipt of Tata Communications order

Shares of DroneAcharya Aerial Innovations witnessed a sharp recovery, surging nearly 8 percent during intra-day trading on Monday, January 13, after the company announced securing an order from Tata Communications.

"DroneAcharya Aerial Innovations Limited has been awarded a Purchase Order of INR 5,50,000/- (exclusive of taxes) from Tata Communications Limited for building customised drone solution (“Static Drone”) for their experience center. A static drone refers to a drone that is designed to be displayed or showcased without being operational or flying. It is often used as a model or exhibit to demonstrate the drone's design, features, and functionality without functioning as a flying device," the firm said in an exchange filing.

DroneAcharya emphasized the significance of this collaboration, stating that it marks the start of a promising partnership with Tata Communications. The company aims to deliver innovative and high-quality drone solutions, solidifying its position in the drone industry. It added that this partnership could lead to future projects and further innovation, fostering growth for both organizations in the rapidly evolving technology sector.

Stock Performance

The SME stock, which touched its intraday low of ₹102.60—also its 52-week low—saw a strong rebound following the order announcement. It climbed 7.8 percent from its day's low to hit a high of ₹110.60. Despite this recovery, the stock remains over 45 percent below its 52-week high of ₹202.00 recorded in January 2024.

Over the past year, the stock has shed more than 42 percent of its value. It has declined over 8 percent in January so far, following a modest 2.6 percent rise in December 2024.

Company Overview

DroneAcharya Aerial Innovations, headquartered in Pune and incorporated in 2017, specializes in drone training and services across India. Its offerings include drone survey and mapping, surveillance, delivery, and underwater inspection services. Additionally, the company provides training programs such as drone pilot training, drone building, aerial cinematography, drone racing, and agricultural drone solutions. It also offers reusable rocket launch vehicles, cubesat products, and maintenance and consultancy services.

Financial Performance

In the six months ending September 2024 (H1 FY25), the company's consolidated profit after tax (PAT) plunged 62.1 percent to ₹1.50 crore, down from ₹3.96 crore in the same period the previous year. However, its revenue from operations rose 28.8 percent to ₹26.90 crore, compared to ₹20.88 crore in H1 FY24. Including other income of ₹75.86 lakh, the company’s total revenue for the period stood at ₹27.66 crore.