ideaForge Technology Ltd (NSE: IDEAFORGE) The Indian drone manufacturer secured its highest-ever year-to-date order booking of ₹4,400 million, driven by new defense contracts. Management aims for profitability by the end of the fiscal year through the targeted execution of 40–45% of its open orders in the fourth quarter.
ideaForge Technology Limited reported its financial results for the quarter ended December 31, 2025, characterized by a surge in order intake alongside a deepening net loss. While revenue increased on a year-over-year basis, the company recorded a net loss of ₹338.5 million for the quarter, which management attributed to a lower revenue base while operating expenses remained flat. Despite current bottom-line pressures, the company’s total order book reached a historic high, supported by significant contract wins in the defense sector.
Critical Advancements
The primary driver of the company’s recent activity is the accumulation of approximately ₹4,400 million in orders year-to-date for FY26, the highest quantum in its two-decade history. During the third quarter alone, the company booked more than ₹1,020 million through large opportunities and approximately ₹1,150 million via multiple smaller orders across the defense and civil sectors. Notable contract awards included ₹1,000 million for the ZOLT tactical UAV and SWITCH V2 platforms, which feature electronic warfare resilience capabilities required by the Indian Army. Additionally, the company signed a strategic memorandum of understanding with C-DAC to integrate its technology into the national emergency response network.
Financial performance
For the third quarter of FY26, revenue from operations stood at ₹315.4 million, up from ₹176.1 million in the same period the previous year. However, the gross profit margin contracted significantly to 23.7%, compared to 46.0% in Q3 FY25. The company reported an EBITDA loss of ₹239.1 million for the quarter, widening from a loss of ₹125.8 million in the year-ago period. For the nine-month period ending December 31, 2025, total revenue reached ₹850.9 million with a cumulative net loss of ₹770.3 million. Employee benefit expenses and other costs remained substantial, totaling ₹159.2 million and ₹180.8 million respectively for the quarter.
Business outlook and strategy
Management has identified the execution of approximately 40–45% of its open order book in the fourth quarter as the immediate operational priority. The company expects this execution phase to improve gross margins and enable it to turn profitable by the close of FY26. Beyond the domestic market, ideaForge is progressing with the formation of a joint venture with First Breach Inc. in the United States to enhance international market access and mitigate risks associated with shifting global trade policies and tariffs. In terms of product development, the company is currently industrializing its ZOLT tactical series and conducting ground validation for its YETI logistics UAV technology demonstrator.
Sector and Macro Environment
The Indian drone sector is seeing accelerated procurement cycles, particularly following the conclusion of Emergency Procurement Cycle 6 (EP6). Industry tailwinds are supported by reports of a potential ₹200 billion procurement outlay by the Ministry of Defense for fiscal year 2027, covering ISR platforms, loitering munitions, and strike drones. While ideaForge maintains a SaaS-DaaS tech stack, it remains subject to broader pressures in the software and hardware integration space, including R&D intensity and evolving regulatory norms.