The S&P/ASX 200 Index (ASX: XJO) plunged 7.8% in March, but that didn't stop the DroneShield Ltd (ASX: DRO) share price from posting another month of solid gains.
Shares in the ASX 200 drone defence company closed out February trading for $3.62. When the closing bell sounded on 31 March, shares were changing hands for $3.81 apiece.
This put the DroneShield share price up 5.3% over the month just past.
Here's what's been piquing investor interest.
Image source: Getty Images
DroneShield share price soars higher amid global conflicts
On the macro level, daily news feeds detailing the Iran conflict and the growing prevalence of drone warfare were hard to escape in March, and likely helped boost the DroneShield share price.
Russia's war in Ukraine is also seeing ongoing heavy drone use, while various nations around the world have been moving to protect their critical infrastructure from hostile drone attacks.
The ASX 200 defence stock also reported on a number of promising developments over the month.
On 11 March, DroneShield reported that it had commenced manufacturing its counter-drone products in the European Union in collaboration with an unnamed EU partner.
Pointing to the ReArm Europe Plan/Readiness 2030 initiative, the company noted:
Under a new collaboration with an experienced and established manufacturer, production of European-made counter-UAS systems is now underway, with delivery scheduled for mid-2026…
As part of this collaboration, DroneShield has established and will continue to grow a primarily EU-based supply chain, making this the company's only production line currently outside of Australia.
DroneShield CEO Oleg Vornik said, "The ReArm Europe Plan / Readiness 2030 initiative has highlighted the importance of localised, scalable production, and this new production line positions us to meet that demand."
The DroneShield share price closed up 1.5% on the day.
Building on its growing EU footprint, on 30 March the company announced that it had opened a new headquarters in Amsterdam.
Commenting on its new head office in the Dutch capital city, the company said:
It further builds on DroneShield's newly established European manufacturing footprint to advance sovereign counter-UAS capability, which marks a major expansion of the company's European industrial footprint and manufacturing capacity.
In calendar year 2025, the European market accounted for 45% of the company's total revenue.
And the turbulent global outlook for 2026 could help the DroneShield share price continue to outperform.
According to the ASX defence stock:
As of February 2026, DroneShield has a regional pipeline valued at $1.2 billion. Geopolitical pressures, such as the Iranian conflict, ongoing war in Ukraine and repeated Russian drone incursions, continue to drive demand for deployed counter-UAS solutions across Europe and the Middle East.
