IDEAFORGE - Ideaforge Tech

📊 NSE: IDEAFORGE 🏢 Engineering 📅 Last Updated: 12/14/2025 7:54

💰 Financial Performance

Revenue Growth by Segment

FY 2024-25 Consolidated Revenue: INR 182.4 Cr, a 47% decline from INR 344.4 Cr in FY 2023-24. Segment split: Defence 59% (INR 107.6 Cr) and Civil 41% (INR 74.8 Cr). H1 FY 2026 Revenue: INR 53.5 Cr, down 56.6% from INR 123.3 Cr in H1 FY 2025.

Geographic Revenue Split

Primarily domestic (India) with 59% Defence and 41% Civil in FY 2024-25. Expanding to North America via a US Joint Venture (First Forge) and investment in Vantage Robotics Inc. (Silicon Valley).

Profitability Margins

Gross Profit Margin: 50% in Q2 FY 2026 (INR 20.4 Cr) and 52.8% in H1 FY 2026 (INR 28.3 Cr). Net Profit Margin (Standalone): -31% in FY 2024-25 compared to 15% in FY 2023-24, a 305% decline.

EBITDA Margin

Consolidated EBITDA Margin: -20% (INR -31.5 Cr) in FY 2024-25 vs 27% (INR 85.9 Cr) in FY 2023-24. H1 FY 2026 EBITDA: INR -23.1 Cr.

Credit Rating & Borrowing

CRISIL BBB/Negative (revised from Stable in Nov 2025) due to moderated business risk. Borrowing costs are minimal as the group maintains nil debt as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

UAV components and electronics (specific material names not listed).

Capacity Expansion

Not disclosed in available documents; however, the order book stands at INR 238 Cr as of October 2025.

Raw Material Costs

Not disclosed in available documents; however, gross margins are 50% in Q2 FY 2026, indicating raw material and direct costs represent 50% of revenue.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Expansion into North America via 'First Forge' JV with First Breach Inc., investment in Vantage Robotics for deep tech, and targeting unmanned logistics and ISR capabilities to diversify from the 59% defense revenue base.

Products & Services

SWITCH UAV (DGQA certified), Q6 platform, Unmanned Logistics and Mobility solutions, Intelligence, Surveillance and Reconnaissance (ISR) drones.

Brand Portfolio

ideaForge, SWITCH, Q6.

New Products/Services

Unmanned logistics and mobility platforms for defense and civil use; enhanced ISR capabilities.

Market Expansion

Targeting North America (USA) through a Joint Venture for manufacturing and distribution; expansion into civil use cases like city planning and emergency response.

Market Share & Ranking

Established market leader in the Indian UAV industry; recognized as a Top 10 company in Select 200 by Forbes India at DGEMS 2024.

Strategic Alliances

Joint Venture 'First Forge' with First Breach Inc. (USA); investment in Vantage Robotics Inc. (Silicon Valley deep tech startup).

🌍 External Factors

Industry Trends

The Indian drone industry is shifting toward indigenization with the Defense Procurement Manual 2025 banning global tenders under INR 200 Cr, supporting domestic manufacturers' scale.

Competitive Landscape

Domestic players are favored by new procurement reforms; ideaForge maintains an edge through precision block capabilities and military-grade certifications.

Competitive Moat

Robust Intellectual Property (IP) and 'Fit for Indian Military Use' certification for the SWITCH UAV provide a technical moat; NSN numbers for SWITCH and Q6 platforms enhance global credibility.

Macro Economic Sensitivity

Highly sensitive to government defense spending and 'Make in India' policy shifts; DPM 2025 favors domestic players for orders under INR 200 Cr.

Consumer Behavior

Increasing adoption of drones for civil use cases like city planning, outdoor inventory management, and emergency response (Civil segment grew to 41% of revenue in FY 2025).

Geopolitical Risks

Export opportunities in North America and NATO-aligned markets (NSN numbers obtained) provide a hedge against domestic-only exposure.

⚖️ Regulatory & Governance

Industry Regulations

Industries (Development and Regulation) Act, 1951; Defense Procurement Manual 2025 (DPM 2025); DGFT export authorizations for international sales.

Taxation Policy Impact

Consolidated tax of INR -0.1 Cr in FY 2024-25; standalone tax of INR -1.1 Cr.

⚠️ Risk Analysis

Key Uncertainties

Dependence on government orders (65% of revenue) and long procurement cycles; delay in L1 order conversion resulted in H1 FY 2026 revenue decline of 56.6% YoY.