Drone Maker ideaForge Returns to Profit With ₹6.5 Crore in Q2 as Revenue More Than Doubles on Defence Demand

ideaForge Technology, India's best-known listed drone manufacturer, returned to profit in the September quarter as revenue more than doubled, reflecting rising demand for unmanned aerial systems from India's armed forces and security agencies.

The Mumbai-based company reported a net profit of ₹6.5 crore for the July-September quarter, the second quarter of the 2026-27 financial year, compared with a net loss of ₹19.62 crore a year earlier, according to Entrackr. Revenue from operations rose 123.9% to ₹91.28 crore from ₹40.76 crore. Including other income of ₹6.28 crore, total income was ₹97.6 crore, compared with ₹44 crore.

The results were announced on Monday, November 2. ideaForge's shares had closed at ₹639.25 that day, giving the company a market capitalisation of about ₹3,126 crore, according to Entrackr.

Costs rise more slowly than revenue

The return to profit was driven by revenue growing much faster than costs. Total expenses rose 41.7% to ₹90 crore from ₹63.52 crore, according to Entrackr. The cost of materials consumed rose 90.9% to ₹42 crore, reflecting higher production volumes, while employee costs rose 10% to ₹16.58 crore and other expenses rose 4.8% to ₹16.67 crore. Depreciation increased 39.8% to ₹14.75 crore.

The operating leverage, in which fixed costs are spread over a larger revenue base, is particularly important for hardware companies such as ideaForge, which invest heavily in research, development and manufacturing capacity.

A volatile first half

For the first half of the financial year, revenue from operations nearly tripled to ₹160 crore from ₹53.5 crore. However, net profit for the half was ₹3.87 crore, down 10.4% from ₹4.32 crore, because the company reported a small loss in the first quarter. Based on the half-year figures, the first quarter's revenue was about ₹68.7 crore, with a loss of about ₹2.6 crore.

ideaForge's quarterly results have historically been volatile, because its revenue depends heavily on the timing of large government orders and deliveries. A single large defence contract can significantly affect a quarter's results.

Defence demand

The strong revenue growth reflects increasing demand for drones from India's military and paramilitary forces. Drones have become central to modern warfare, as conflicts in Ukraine and the Middle East have shown, and India's armed forces have accelerated purchases of surveillance, reconnaissance and combat drones.

India's military operations against Pakistan in May 2025, known as Operation Sindoor, highlighted the role of drones and counter-drone systems in modern conflict and spurred further investment by the armed forces in unmanned systems. The government has also emphasised buying from domestic manufacturers under its "Make in India" and "Atmanirbhar Bharat" policies, which favour Indian companies such as ideaForge.

ideaForge's drones are used by the Indian Army, central armed police forces, state police forces and other agencies for surveillance, border security, disaster management and mapping.

About ideaForge

ideaForge was founded in 2007 by graduates of IIT Bombay, including chief executive Ankit Mehta. It was one of the pioneers of India's drone industry and gained prominence when its drones were used by security forces in counter-insurgency operations and disaster relief.

The company listed on Indian stock exchanges in July 2023 in a heavily oversubscribed initial public offering, becoming one of the first Indian drone companies to go public. Its shares surged after listing but later declined as the company reported uneven results and losses.

The drone policy push

India's government liberalised drone regulations in 2021, replacing a restrictive regime with the Drone Rules, 2021, which simplified approvals for operating drones. It also banned the import of foreign drones, with some exceptions, to support domestic manufacturing, and introduced a production-linked incentive (PLI) scheme for drones and drone components.

These measures have helped India's drone industry grow rapidly, with companies supplying drones for agriculture, mapping, infrastructure inspection, delivery and defence. The government's goal is to make India a global drone hub by 2030.

Competition intensifies

ideaForge faces growing competition in India's drone market from companies such as Garuda Aerospace, Tata Advanced Systems, Adani Defence, Zen Technologies, which focuses on counter-drone systems, and a large number of startups. New entrants are attracted by the strong growth prospects and government support, particularly in defence.

Competition is also intensifying in counter-drone technology, as militaries seek to defend against hostile drones. Startups working on drone detection and interception have attracted significant venture funding in India and globally.

Challenges ahead

Despite strong demand, ideaForge faces several challenges. Its dependence on government orders makes its revenue lumpy and difficult to predict. Securing a reliable supply of components, particularly electronic parts, many of which have historically come from China, is a strategic priority, as the armed forces increasingly require drones free of Chinese components. The company must also keep pace with rapid technological change, including the integration of artificial intelligence, autonomous navigation and electronic warfare resilience.

Why it matters

ideaForge's turnaround is significant for India's deeptech and defence technology ecosystem. As one of the few listed pure-play drone companies, its performance is closely watched by investors as a barometer of the sector. A sustained return to profit would strengthen confidence in Indian defence technology companies at a time when the government is seeking to build a domestic defence industrial base and expand defence exports.

The order pipeline

ideaForge's revenue depends heavily on its order book from government customers. Defence procurement in India typically involves long evaluation and trial processes, followed by large orders that can be delivered over several quarters. This pattern explains the swings in the company's quarterly revenue and profit.

The Indian government has also expanded emergency procurement powers for the armed forces, allowing faster purchases of critical equipment, including drones, in response to operational needs. Such procurement has benefited domestic suppliers, although it can make demand harder to forecast.

Beyond defence, ideaForge supplies drones for civilian uses such as mapping, infrastructure inspection and disaster response, which provide a smaller but more diversified source of revenue. Expanding these civilian and export markets would help reduce its dependence on government defence orders over time.

What comes next

Investors will watch ideaForge's order book, the pace of deliveries and its ability to maintain profitability over the coming quarters. With India's defence spending rising and drones playing an increasingly central role in military strategy, the company is well positioned to benefit, provided it can manage competition, supply chains and the lumpy nature of government contracts.