About the Company:

Ideaforge Technology Limited (Formerly known ideaForge Technology Private Limited) was incorporated on February 8, 2007. The company is a pioneer and market leader in the Indian uncrewed aerial systems (UAS) sector for more than 18 years. It built several core equities over that period that help it indigenously design, engineer and manufacture sophisticated UAVs and a full stack cloud analytics platform that are fully operational among a wide network of customers, theatres and regions across India.

At present, Company is primarily engaged in the business of manufacture and marketing of Unmanned aerial vehicle (UAV) systems which are used for security and surveillance. The Company had largest operational deployment of indigenous UAVs across India, with an ideaForge manufactured drone taking off every five minutes on average for surveillance and mapping. The indigenous design and technological capabilities allowed the Company to design, develop, engineer and manufacture UAVs in-house with a control on performance, reliability, and autonomy. UAVs have a fully integrated system relying on complex avionics and electro-mechanical designs and advance programming. The software architecture of such advanced programming is based on complex and interdependent applications including unencrypted signal mechanisms. For instance, ground control station (GCS) software enables UAVs to achieve higher safety and lower on field effort for the pilot such as take-off area suitability check, coverage area check and target location coverage check for off-site mission planning prior to deployment. Further, their AI based image intelligence features which are equipped in UAVs help in `people detection' and `target tracking' and certain UAVs also have `motion detection' feature that helps in surveillance. These products are deployed in high security surveillance activities involving sensitive and confidential data.

The company is the leader in India's UAV market, holding a 50% market share and it was the first to develop VTOL hybrid UAVs and high-altitude drones. It is the 1^st company to indigenously develop VTOL & Fixed-Wing VTOL Hybrid UAVs, 1^st company to make high-altitude drones in India, 1^st SWITCH UAV obtained ‘Fit for Indian Military Use’ Certificate – first and only UAV in its class and 3^rd Globally in dual-use drones category.

Company’s product portfolio includes drones for Civil as well as Defence Applications. The company offers high-performance drones like SWITCH UAV, NETRA V, ZOLT, Q6 V2 UAV, NETRA V4 PRO, NETRA V4 PLUS UAV and Q4i UAV built for long-range and high-altitude missions, with ranges up to 15 km and flight times up to 120 minutes for various applications in Defence sector such as Anti-terror, Border Security, Coastal Security and Surveillance and Crime Control. It also offers lightweight and versatile drones like NINJA and RYNO, designed for day-and-night operations, with ranges up to 4 km and flight times from 20 to 40 minutes for Civil applications such as Land Survey, Mining Area Planning and Mapping, Volumetric Estimation and Oil and Gas. Recently in Q4 FY25, the company launched two new products, NETRA 5 and Switch V2, and unveiled concept models for the Tactical ZOLT drone and the Logistics YETI drone.

Figure 1 Source: Investor Presentation

The company manufactures all its products in-house at its facility in Navi Mumbai, Maharashtra, which spans 21,000 sq. ft. of licensed space across three floors, comprising storage areas, testing zones, and production. The company has 2 in house product development centers in India. It is advancing UAV tech with new drones (NETRA 5, ZOLT, YETI), AI tools, ship-based landing, enhanced payloads, and improved communication and surveillance systems.

The company has also expanded its UAV offerings with advanced software and hardware solutions. BlueFire Live! and BlueFire Touch enable real-time video streaming and mission control. FlyghtCloud ensures secure drone data management, while IdeaForge CARE offers comprehensive support and maintenance. The company’s Forest Solution, developed with Esri India, enables real-time forest surveillance. Its NAKSH payloads deliver high-precision imaging and mapping for diverse applications.

Figure 2 Source: company presentation

Company has completed 700,000+ Total Customer Flights and every 3 mins an ideaForge drone takes-off. Company has completed 45,000+ Customer Flights in Q1 FY26 and 89 Patents (Granted + Pending). 

In Q1Fy26, Company saw Deployment of ideaForge UAVs by Indian Army during Operation Sindoor and it also recieved ₹137 crores Emergency Procurement order from Indian Army for mini-UAVs. It also experienced Largest ever field trials triggered by Operation Sindoor demonstrating long range and endurance (ZOLT) and EW resilience (all platforms).

In February 2025, the company invested USD 1.83 Mn in US-based UAV manufacturer Vantage Robotics, Inc. through a compulsorily convertible promissory note, aiming to collaborate on technology and manufacturing. It also partnered with Resonia (Sterlite Group) to transform the energy Sector with drones and robotics technology. It has also entered into Strategic collaboration with HFCL for global market access of advanced UAV solutions.

Fundamentals:

Financial Results:

Company has reported Revenue from operations of INR 127.8 Mn for Q1 FY26 as compared to INR 203.1 Mn for Q4 FY25. The QoQ variation is 37.1%. The execution of recently booked orders is planned over the upcoming quarters. Its Gross margin % is at 61.7% in Q1 FY26, as compared to 35.9% in Q4 FY25 and EBITDA margin % is at -118.5% in Q1 FY26, as compared to -85.7% for Q4 FY25, and PAT margin % is at -184.3% in Q1 FY26, as compared to -126.5% for Q4 FY25, owing to revenue impact, while our expenses have remained relatively flat.

Company has narrowed its loss to - 235.6Mn. in Q1Fy6 from - 257Mn in Q4Fy25. Company has witnessed 965% jump with order book of 1448 Mn in 30-Jun-25 compared to 136Mn as on 31^st March 2025.

Conclusion:

India’s drone sector is taking off, with the market projected to triple by 2030 on the back of defense modernization, agriculture adoption, and new use-cases in logistics and infrastructure. Policy support through the Drone Rules, the Digital Sky platform, and production-linked incentives is cementing the ecosystem, creating a US$20–25 billion opportunity by decade-end.

Within this landscape, IdeaForge stands out as a homegrown leader with proven defense contracts. A recent order from the Ministry of Defence underscores demand visibility, but execution challenges remain. The company’s latest numbers highlight revenue contraction and negative margins, keeping investors cautious. Post-Operation Sindoor, government procurement has received a major boost, with the allocation of ₹40,000 crores for the 6th cycle of Emergency Procurement for the armed forces. Additionally, the government has announced an RDI Fund of ₹1 lakh crore, which will further boost innovation efforts in the industry. The next phase of PLI is also expected to be rolled out for drone manufacturers, which will be a major tailwind for the industry and ideaForge.

For investors, IdeaForge is less a steady compounder and more a leveraged play on India’s UAV adoption curve. If execution improves and policy-driven demand accelerates, upside could be meaningful. Until then, a measured, risk-aware position is the smarter call.

HET ZAVERI
info@smartinvestment.in

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