Ideaforge Technology, a prominent player in India’s drone manufacturing sector, has reported a challenging financial performance for the fiscal year 2024-25. The company posted a consolidated net loss of ₹25.71 crore in Q4 FY25, a significant downturn from a net profit of ₹10.33 crore in Q4 FY24. This marks the third consecutive quarter of losses for Ideaforge.
Revenue from operations also saw a steep decline, falling 80.15% year-on-year to ₹20.31 crore in Q4 FY25, compared to ₹102.30 crore in the same quarter the previous year.
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Financial snapshot: FY25 vs. FY24
| Metric | Q4 FY25 | Q4 FY24 |
| Revenue (₹ crore) | 20.31 | 102.30 |
| Operating Profit Margin (%) | -107.58 | 14.56 |
| EBITDA (₹ crore) | -17.67 | 19.96 |
| PBT (₹ crore) | -25.69 | 14.14 |
| Net Profit/Loss (₹ crore) | -25.71 | 10.33 |
For the full fiscal year, Ideaforge reported a net loss of ₹62.28 crore, a stark contrast to the ₹45.27 crore net profit in FY24. Annual revenue also declined by 48.66%, from ₹314.00 crore in FY24 to ₹161.22 crore in FY25.
Share price movement
Despite the dismal financials, Ideaforge’s share price surged by 20% on May 9, 2025, hitting an upper circuit at ₹463.20 on the BSE. This rally occurred even as the company reported its third consecutive quarterly loss.
Analysts attribute this unexpected surge to geopolitical tensions between India and Pakistan, which have heightened interest in defence-related stocks, including drone manufacturers like Ideaforge.
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Revenue composition:
In Q4 FY25, civil contracts accounted for 96% of Ideaforge’s revenue, with defence contracts contributing the remaining 4%. However, for the entire fiscal year, the revenue split was 59% from defence and 41% from civil contracts.
The company’s CEO, Ankit Mehta, cited a slowdown in government procurement of drones as a significant factor impacting revenue. He noted that while there was latent demand, progress towards procurement initiatives was slow, particularly in the first part of the year, due to general elections. However, he mentioned that the industry started to regain momentum towards the end of the year.
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Operational challenges and outlook
Ideaforge’s expenses for Q4 FY25 stood at ₹50.4 crore, up 18% quarter-on-quarter but down 46% year-on-year. The company’s order book at the end of Q4 FY25 was ₹13.6 crore, a decrease from ₹20.7 crore in the previous quarter.
The company’s stock has experienced significant volatility, with a 52-week range between ₹301.00 and ₹864.10. Despite the recent rally, the stock remains down approximately 70% from its all-time high.
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Conclusion
Ideaforge’s financial performance in FY25 reflects the challenges faced by the drone industry in India, including regulatory hurdles and fluctuating demand. While recent geopolitical developments have sparked investor interest, the company’s long-term prospects will depend on its ability to secure consistent contracts and manage operational costs effectively.
Investors should closely monitor Ideaforge’s upcoming quarters for signs of recovery and sustained growth in both the civil and defence sectors.
