India’s Kamikaze drone strike on Pakistan boosts this Israeli stock with an Adani connection

Synopsis

NASDAQ-listed Elbit Systems rose 4.7% over two days, from $400.00 on May 6 to $418.97 on May 8, following India’s initiation of "Operation Sindoor", a coordinated cross-border operation involving missiles and loitering munitions.

Shares of Israeli defence firm Elbit Systems surged this week after India deployed SkyStriker kamikaze drones—co-developed with Adani Group’s Alpha Design Technologies—in a series of precision strikes on Pakistani military targets this week, marking the drones’ most prominent role yet in active combat and fuelling investor bets on the future of unmanned warfare.

NASDAQ-listed Elbit Systems climbed 4.7% over two sessions—from $400.00 on May 6 to $418.97 by May 8—following India’s launch of "Operation Sindoor", a coordinated cross-border campaign involving missiles and loitering munitions.

The SkyStriker, a stealthy “suicide drone” built in Bengaluru by Adani’s Alpha Design and adapted from Israeli tech, was deployed for real-time target elimination with high precision and low visibility.

Indian defence officials credited the drone’s near-silent electric engine, deep-strike capability, and last-second abort function for enabling high-impact raids on terrorist and air defence infrastructure inside Pakistan and Pakistan-occupied Kashmir—without exposing Indian personnel to risk.

The strike’s ripple effects were felt in Indian markets too. On Friday, shares of Ideaforge Technology soared 12% to Rs 432.65, leading gains across domestic drone and defence names. Droneacharya Aerial Innovations rose 5%, ZEN Technologies climbed 5%, and Paras Defence and Space Technologies advanced nearly 4%.

The rally came after New Delhi confirmed that suicide drones were used to destroy Chinese-origin HQ9 air defence systems in Lahore and Multan—part of a response to Pakistani overnight missile and drone attacks on Indian cities including Jammu, Chandigarh, and Srinagar. India’s air defence grid successfully intercepted most of the incoming fire, while a Pakistani fighter jet was reportedly shot down.

Adani Group’s quiet role in a high-stakes conflict

While Elbit developed the SkyStriker platform in Israel, it was the Adani Group’s Alpha Design Technologies that brought it into Indian production under the Make in India initiative. More than 100 drones were ordered in 2021, but Operation Sindoor marks the platform’s most visible combat deployment.

The joint venture has positioned Adani Defence at the centre of India’s rapidly evolving unmanned weapons capability—now tested in direct military-on-military conflict for the first time.

As India and Pakistan exchange fire both in the skies and across the Line of Control, the strong equity response reflects the growing investor conviction in India's indigenous and joint-venture defence ecosystem. For Elbit, Adani, and India’s broader drone manufacturing push, the SkyStriker’s lethal debut may be a watershed moment.

Also read | Drone stocks rally up to 15% as high-tech sky assassins dominate India-Pakistan conflict

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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