Droneacharya Aerial surges up to 13% on incorporation of subsidiary in Abu Dhabi

The company has incorporated a subsidiary named Drone Entry Aerial Services LLC in Abu Dhabi for expansion of operations in the Middle East, the company informed the stock exchanges in a filing.

The industrial drone solutions provider in a stock exchange filing said that its strategic expansion into the Middle East has become successful with the incorporation of a new company under the trade name of Drone Entry Aerial Services in Abu Dhabi.

Droneacharya Aerial Innovations holds a 99% stake in the newly established entity, Drone Entry Aerial Services. The expansion into the Middle East marks a significant milestone in the company’s journey of growth and global outreach.

The newly-incorporated entity will be working on aerial surveys conducted by drones, along with drone sales and leasing, as well as surveillance and inspection by drones.

By expanding into the Middle East, Droneacharya Aerial Innovations will be able to access high growth markets, lead the way to newer strategic partnerships, work on enhanced revenue streams, and reinforce its technology leadership.

The Middle East region is observing a sharp uptick in demand for drone technology, majorly in industries such as oil and gas, real estate, logistics and smart cities, providing a massive opportunity for Droneacharya Aerial Innovations, the company informed the bourses.

The Indian drone maker is of the view that its collaborations with leading Middle Eastern firms will enhance its technical capabilities and market reach, while entry into a new market ensures diversification of revenue sources, reducing dependency on a single region, thereby enhancing the company’s revenue streams.

Droneacharya Aerial Innovations also said that establishing a strong presence in the Middle East reinforces the company’s position as a global innovator in the Unmanned Aerial Vehicle (UAV) technology.

The Pune-based company has a strong presence in the drones industry in India, along with a growing footprint internationally.

Shares of Droneacharya Aerial Innovations rallied as much as 12.9% to hit an intraday high of ₹131 per piece on the BSE. However, the stock pared some of early gains to trade 8.06% higher at ₹125.4 apiece on the BSE at 2:32 pm.

The stock has gained over 12% in a month’s time and is up almost 10% in the last one week. However, over the last three months, the drone stock has fallen 20%, while declining nearly 35% so far this year.