Adani linked drone makers stock jumps after success in Operation Sindoor

Elbit Systems, an Israeli defense technology company listed on NASDAQ under the ticker ESLT, saw a significant 3.62% rise in its stock price following India’s Operation Sindoor. The stock jumped from $400.00 on May 6 to $414.47 on May 8, aligning with the timing of the operation, which involved precision strikes across Pakistan and Pakistan-occupied Kashmir. This uptick highlights the growing investor interest in Elbit Systems, largely due to the successful deployment of its SkyStriker kamikaze drones.

The SkyStriker loitering munition, developed by Elbit Systems in collaboration with Alpha Design Technologies (now part of the Adani Group), was used extensively during Operation Sindoor. The drones are designed for stealth and precision, allowing operators to carry out targeted strikes with minimal collateral damage. These drones are manufactured at a Bengaluru facility run by Alpha Design Technologies, under India’s “Make in India” initiative, which aims to promote domestic defense manufacturing.

The SkyStriker drone carries warheads of 5 kg or 10 kg and has a loitering endurance of up to two hours. It features an electric propulsion system, making it nearly silent and suitable for deep penetration missions. Operators can abort a strike just two seconds before impact, giving them the flexibility to re-engage or return the drone if no viable target is found. These capabilities allowed Indian forces to conduct pinpoint aerial attacks while minimizing the risk to pilots and ground forces.

India had placed an order for more than 100 units of the SkyStriker in 2021 following the Balakot airstrikes. However, Operation Sindoor marks the most visible deployment of the drones to date. They were used for precision fire support, target elimination, and real-time tactical coordination, making them a key tool in India’s military strategy. The drones played a significant role in eliminating terror infrastructure in hostile terrain, proving to be effective in the high-stakes operation.

The commercial and strategic value of the SkyStriker program has become more apparent, not only benefiting Israel’s Elbit Systems but also reinforcing India’s growing defense manufacturing sector, which includes major players like Adani Defence. As India continues to expand its defense capabilities, the success of joint ventures like the one between Elbit and Adani strengthens the country’s self-reliance in military technology, marking a milestone in India’s defense production landscape.