Aerpace Industries Share Price Hits 5% Upper Circuit After UAE Defence Order Win

Market Performance

Aerpace Industries share price was locked in the 5% upper circuit on August 20, 2025, after the small-cap company announced a significant defence order from a UAE-based firm.

• Opening Price: ₹20.71
• Previous Close: ₹20.67
• Day’s High / Upper Band: ₹21.70

Despite short-term weakness, the stock has delivered exceptional long-term returns:

• 1-Year Performance: Down 46%
• Year-to-Date (YTD): Down 55%
• 2-Year Gains: 604%
• 5-Year Multibagger Returns: 4238%

Main News

Aerpace Industries informed the exchanges that its UAE subsidiary, Aerpace General Trading LLC, has received a Letter of Intent (LoI) from a prominent defence company in the region.

The UAE firm has shown interest in Aerpace’s advanced defence drone portfolio and will soon send representatives to India for live demonstrations under the company’s aerShield programme.

Following satisfactory demonstrations and validation, the UAE defence entity is expected to proceed with procurement. Due to confidentiality agreements, the name of the UAE company has not been disclosed.

Company Details

Aerpace Industries highlighted that it is actively working across multiple verticals:

• Solar Energy: AerVolt
• Defence Drones: aerShield
• Urban Air Mobility: aerWing, aerTaxi, aerCar
• Advanced Infrastructure: Deep-technology projects

The company reassured shareholders that while progress may not always be visible, R&D, prototyping, and compliance efforts are ongoing to achieve commercial rollout.

Financial Performance (Q1 FY26)

Aerpace Industries reported a mixed set of numbers for the April-June quarter:

• Net Loss: ₹1.76 crore (vs. ₹0.94 crore in Q1 FY25)
• Sequential Comparison: Loss narrowed from ₹3.3 crore in Q4 FY25
• Total Income: ₹13.91 lakhs (vs. ₹10.93 lakhs a year ago)
• Revenue from Operations: Nil, income mainly from other sources

Summary

The latest UAE order win has reignited investor interest in Aerpace Industries share price. While the stock has struggled in the short term, its multibagger performance over five years (4238% returns) highlights its potential in emerging sectors like defence drones and urban air mobility.

With new international opportunities and ongoing projects, the company aims to move from R&D to demonstrations and eventual revenue generation in the coming years.