ideaForge Technology Ltd (NSE: IDEAFORGE) Q4 2025 Earnings Call dated May. 09, 2025
Corporate Participants:
Parth Patel — Associate
Ankit Mehta — Chief Executive Officer and Whole-Time Director
Vipul Joshi — Chief Financial Officer
Analysts:
Dipen Vakil — Analyst
Hardik Rawat — Analyst
Balasubramanian A — Analyst
Vipul Parekh — Analyst
Sahil Vora — Analyst
Sahil Singh — Analyst
Vineet Gala — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4FY ’25 ideaForge Technology Limited earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Parth Patel. Thank you and over to you sir.
Parth Patel — Associate
Thank you and good morning. On behalf of MUFG Intime, I welcome you all to ideaForge Technology Limited Q4 and FY ’25 earnings conference call. From the management side we have Mr. Ankit Mehta, Chief Executive Officer. Mr. Vipul Joshi, Chief Financial Officer. I hope everyone had an opportunity to go through our investor deck and press release that we have uploaded on our exchange and company’s website. A short disclaimer I would like to say before we begin the call. This call may contain some of the forward-looking statements which are completely based upon our belief, opinion and expectations. As of today, these statements are not a guarantee of our future performance and involve unfortunate risks and uncertainties. With this now, I hand over the call to Mr. Ankit Mehta. Over to you sir.
Ankit Mehta — Chief Executive Officer and Whole-Time Director
Thanks Parth. Good morning everyone. Thank you for joining us today for the earnings conference call for quarter four and financial year 25. I hope this message finds you all in good health. I have my colleague Vipul Joshi who is our Chief Financial Officer with me along with our investor relations partner on the call with us. I would like to begin this call by paying my heartfelt condolences to the victims of the Pehalgam terror attack and the subsequent loss of life of our countrymen. In the face of adversity, our armed forces continue to display unparalleled courage, resilience and commitment to the nation. As an organization deeply committed to national security, we stand steadfast in solidarity with the Indian forces. Not just in words, but in action. Whether in the harshest terrains, under the COVID of night or in the remotest corners of our nation, we have always been and always will be by their side. Our teams are deployed in active areas, supporting our soldiers and empowering their missions. Difficult times like these strengthen our resolve to push for the adoption of drone technology that can not only prevent avoidable loss of life, but also be an effective agent for retaliation for our forces and security agencies. one thing is visible that this incident may mark yet another inflection point for the drone industry in India, just as Galwan did.
However, financial year 25 saw a substantial slowdown for the broader drone industry in India owing to the general elections in the first part and then the slow progress towards procurement initiatives despite the latent demand. While the opportunities continued to mushroom over the year, timely closure was elusive. The industry started to regain momentum at the end of the year with the new emergency procurement cycle for counterinsurgency and counterterrorism operations going into the tendering phase in quarter 4, along with trials of many other civil programs as well toward the end of the same quarter and thus while we did not see closure of opportunities to order book in quarter 4, we now see their progression to our L1 pipeline. This trend continued for us on the international business front as well. The conversion of opportunity to order book has been marked by several disruptions in our geographies of interest such as slower but concrete progress in our opportunities in Africa and the disruptions caused by the initiatives of the new administration in the us. The tariff uncertainty and certain country foraging restrictions in the procurement programs are also driving us towards exploring substantial transformation of our products in the us. However, we were able to do our first demonstration for the U.S. defense bosses in the last quarter, and we are seeing good traction on our early adopter program with several police departments signed up with us to evaluate our products for induction in their opportunities and their operations.
We’ve also been selected for a grant to demonstrate our technology at an event in the U.S. indicating the value of our technology for the market. Through our several demonstrations and early adopter programs in the us, we can confidently say that our USP of offering class leading persistence in aid of ground operations is a game changer in the U.S. market. The trade disruptions have also led to a clear scramble within NATO countries to increase their defense spending and it does create a window of opportunity to participate in this wave. In the same light, the recent free trade agreement with the U.K. may also increase our traction and viability for that market. As we look to diversify our business geographically. We are also working on new categories of drones that can expand our addressable market. We launched the concept of our tactical drone Zolt at Aero India 2025. Zolt will revolutionize long range intelligence, surveillance and reconnaissance missions with innovative payloads such as foliage penetrating radar, large area aerial mapping with advanced payloads such as LiDAR et al. And also enabled precision payload delivery for both our defense and civil customers. Attention garnered by Zolt at the event has now also started to convert into additional inquiries including in the U.S. apart from the make two programs that we are working on for the platform, we also revealed the concept of our middle mile high altitude logistics drone Yeti along with Zolt.
With its modular and innovative design, YETI will change the landscape of the logistics and mobility industry while operating for high altitude and offshore logistics. Along with a medevac configuration as well, our recent partnership with Dressonia of Sterlite Group envisages leveraging Getty to support tower construction in transmission projects. Both of these platforms are in their early stages of development with Zolt being further along with a few prototype versions already flying. We have also made a strategic investment in Vantage Robotics, a cutting edge nano and micro drone provider based in Silicon Valley. With this we will have the most comprehensive dual use product and solutions portfolio ranging from sub 250 gram all up weight to 500 kgs all up weight. As the reality of conflicts for our country also becomes real, the lessons that we can learn from global conflicts that will be critical in creating an advantage over our adversaries. We announced our latest and greatest quadcopter platform Netra five which was conceptualized from the ever changing scenarios in the wars across the world. Netra five redefines equipment resilience in contested and EW rich environments. It is five steps ahead of the nearest competition. Powered by AI enabled GPS, denied navigation, advanced features like frequency hopping and persistent downlink, modular payloads, obstacle avoidance, AI on the edge and quick deployment making it an indispensable equipment and a perfect multi role ally of the forces in the field. After extensive usage by our forces, our Switch UAV has been certified by the DGQA as fit for Indian military use. Switch is the only UAV in its class to get this approval. Due to our commitment to provide the best technology and products to our courses, we have launched Switch version two at Aero India.
This next generation platform not only performs 25% better than its predecessor in terms of flight time and range of operations, but it also has an integrated dual payload option which can enable security forces to carry out day and night surveillance missions seamlessly with advanced capabilities. Both of these platforms will be game changer in military operations, counterinsurgency and counterterrorism scenarios, especially considering the present conflict. Last year our transition from a drone manufacturer to an end to end drone solutions provider was witnessed. We augmented our robust UAV platforms with the ability to deliver actionable intelligence to our end customers. As we lead the path towards adoption of drone technology in enterprise use cases, the need for delivering user outcomes is an essential ingredient for success. Our plight cloud platform is able to help our customers gain seamless data storage, data processing and actionable insights for both surveillance and GIS applications. Fly Cloud is already helping some of our customers securely store, retrieve and analyze data at a central location without the need for investing in additional hardware. Flightdocs is our drone as a service initiative and that takes the philosophy of delivering a solution to the next level by enabling the delivery of drone insights without the need for buying, operating and maintaining any equipment. It operates on a pay per use basis and is revolutionizing enterprise safety and security across many verticals such as mining, food and beverage industry, ports etc. On a daily basis we are preventing threat, helping resolve man animal conflicts, catching perpetrators in action, improving compliance with safety norms and also enabling asset inspections. The use of our drones for persistent coastal monitoring services for the Fisheries Department of Maharashtra has proven to be a game changer in maritime security and unauthorized fishing. Such use cases are already creating good opportunities for us along our country’s coastline. As a part of our efforts to create a drone innovation ecosystem, we have opened our platforms for third party innovation. In the last year we have enabled multiple third party payloads on our UAVs.
Now our platform supports specialized payloads like LiDAR, multispectral, hyperspectral and 3D oblique payloads as well. Integration of these payloads enabled us to participate in marquee driven programs like the recently announced Naksha Project, Namami Gandhi and also helps us deliver value in our partnership will help us deliver value in our partnership with Dressonia. As you are aware, we are also developing a FOX penetration payload with Galaxye to enhance the capability of our security forces. The push towards hosting advanced payloads on our platforms sets us apart from our competition and unlocks higher value opportunities for us. I would like to reiterate that as we break these temporary headwinds in terms of conversion of opportunities to audible, we are focused internally to create long term value. It is clear that as we progress towards our vision 2030, our efforts towards diversification in geography category of drones and business models have started to take shape.
Now I will take you through the financial highlights of Quarter four and FY ’25. While our order book as of 31 March 2025 stood at approximately 14 crores, our Elbum pipeline opportunity of 400/crores continues to stay active and in progress in the right direction with recent domestic additions as well. In the wake of current events, new opportunities continue to emerge on a daily basis and will be pursued based on merit.
Now starting with the consolidated revenues for the current quarter stood at 20 crores versus 17 crores in quarter 3, FY ’24 and INR161 crores for FY ’25 as compared to 314 crores in FY ’24. For the quarter, gross profit stood at 7.3 crores with a gross profit margin of 36%. For FY ’25, gross profit stood at 53 crores with a gross profit margin of about 33%. EBITDA for the quarter was minus 17 crores and minus 31 crores for FY ’25. PAD for the quarter stood at minus 25.7 crores and minus 62 crores for FY ’25. Thank you and now I’d like to open the floor for questions and answers.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dipen Vakil from PhillipCapital. Please go ahead.
Dipen Vakil
Hi sir, thank you for this opportunity and first of all I’d like to say that it’s encouraging to know that your team is already with the armed forces support and provide support there. So, okay, so starting with my first question, I wanted to know a little bit more about the new emergency procurement cycle that you talked about where you have mentioned that the tendering phase 1s going on. So, can you throw some more light into this as to what is happening, where we are, what products are coming in and where, when unexpected to finalize.
Ankit Mehta
See the emergency cycle for counterinsurgency and counter terrorism operations was announced somewhere in January. I believe it was reported in the media as well. And you know, while we are not allowed to talk about what nature of platforms and what specific opportunities were there, but as you can imagine mid cycle of that opportunity being under progress, we have this unfortunate attack on our countrymen and therefore the subsequent actions and reactions will have a role to play in terms of how and when these opportunities get concluded. But we are seeing a lot of motion and movement and trials are happening for various opportunities under this and some of the next stages of evaluations are also happening as well. While I’m not at liberty to really talk about those specific opportunities because of confidentiality with our end customer, so any blended amount in terms of timeline, that initial timeline that we understand this opportunity came with was to potentially close in the early part of the second quarter. That was the intended timeline for closure of order delivery to the industry.
Dipen Vakil
Got it. So, any blended value, I’m not asking for product price, but maybe the value of the tenders or anything and that sort of.
Ankit Mehta
So, what happens is that in any emergency procurement the powers given to the forces is that any specific opportunity may not be more than 300 crores in value. So, that’s typically the limit under which they operate. But it is not necessary that every opportunity is sized for up to 300 crores of spend in terms of the quantity they buy. That’s the current understanding that we have. Obviously each tender has specific quantity and you know, associated value, but we are not yet at the liberty of sharing the same.
Dipen Vakil
Got it sir. Next question is on the lines of tariffs and your U.S. market. So, in your opening remarks you mentioned that there has been some impact or rather that the situation is developing because of the tariffs. So, can you tell us, because right now we are focusing, we are also focusing heavily on the action coming in from the U.S. So, how it has impacted off late. Any flavor on that?
Ankit Mehta
Yeah, so I think opportunities in the U.S. have to evaluate it in light of the impending final tariffs that are going to happen. But despite the tariff response, one of the things that we have learned as we have interacted with more and more people and players in the U.S. is that there are certain restrictions with respect to country of origin in the U.S. in terms of procurement from the federal government in the U.S. those restrictions presently will require us to potentially do a country of origin transformation of products in the U.S. itself. And therefore we are looking at exploring that option and doing it the right way.
Dipen Vakil
Got it sir. Thank you so much for answering my question.
Ankit Mehta
In general, the response of our products is very encouraging. I think particularly our switch platform in a way does not find a peer in terms of something that can enable persistent overwatch for the operations or the ground operations for police forces.
Dipen Vakil
Got it sir. So, so last question. So, you mentioned that your switch UAV has also been certified for military use. So, has that happened in this quarter or is it, it was already certified.
Ankit Mehta
We received the certificate in quarter four itself.
Dipen Vakil
Quarter four itself. And this is also applicable for the upgraded switch UV platform that you are making right now.
Ankit Mehta
No, the certification is usually for a specific product and also it goes through a fairly involved cycle of delivery of the product along with its utilization on feed and feed experience. So, it is fairly involved and very prestigious certificate. It’s not given up a lot of effort. So, whenever we have additional reduction of a switch, maybe through a regular capital procurement, then only will the possibility of other certifications emerge. That’s what our understanding is right now.
Dipen Vakil
Got it. Thank you so much and all the best for FY ’26.
Ankit Mehta
Thank you. However, I can say that the fact that the certification has been received on switch is a testament to the quality, processes and methods that we deploy both design and subsequent support of our technology in the field.
Operator
Thank you ladies and gentlemen. In order to ensure that the management is able to address all questions from all participants in this conference, please limit your questions to two per participant. The next question is from the line of Hardik Rawat from IIFL Capital.
Hardik Rawat
Good morning. Thanks for the opportunity. I received a question first of which was with regards to the order book, firstly with regards again coming back to the question on the emergency performance if you could give us some flavor because some technical trials must have begun as to what the competition is like on the. In the. On grant on ground trials that have begun and so you mentioned that order award could be somewhere towards early 2Q26 if I heard you correctly. What could be the possible. Like how could. What could the execution timelines look like for these contracts? That’s the first question.
Ankit Mehta
See for any emergency procurement the Delivery timeline is 12 months for a formal AP cycle. That’s that we expect from past cycle and this cycle. Also our understanding is that the delivery cycle is going to be 12 months from the order date. In terms of competition, I think the demand for both surveillance and drones for causing an end effect to an adversary are possibly going to be there, and we will not be deeply aware of competition on some of these vectors where we are not participating. But in general as an industry, given what has happened last year, the participation is obviously going to be fairly large in these opportunities and has been. But as is our experience with respect to not many people being able to deliver on the outcomes expected by the fossil, we will see a very similar situation where not more than a handful of people qualify for these opportunities. Presently I can’t share what the exact progress because they are all under evaluation.
Hardik Rawat
Absolutely, yeah, this is helpful. Another point was with regards to the order book, you mentioned in your opening remarks that our order book is now down to about 14 crores and you know, while the lack of orders has been an industry issue not specific to us, it does severely impair our growth visibility. So, just wanted to understand should we expect another washout quarter in the first quarter of FY ’26, because our order book that we have for institutions
Ankit Mehta
What has happened is that like I mentioned, there are opportunities where we have been able to get to being the final candidate, both after technical and commercial evaluation. And we are in as usual, the closing phases of contracting in those opportunities with a substantial order book number as well. It entirely depends on when we are able to get the opportunity in hand with our ability to deliver on that. If we get them hand in time, we do have preparation to deliver substantial value this quarter as well. But it entirely depends on when we get those opportunities in hand. And at this point in time it will be a softer quarter if there is delay in getting those opportunities for execution.
Vipul Joshi
And Hardik people here basically in some of these processes and specifically with the larger opportunities, there’s always an inspection angle from the customer end which is not entirely in our hand, and availability to the customer to come and visit the premises and give the evaluation certificate. So, all of those will play as a role in finally shipping and realizing the revenue.
Ankit Mehta
However, Hardik just wanted to add that there is obviously a sense of urgency at this point in time. So, we are keenly tracking what’s going to happen, and we are preparing ourselves because we also believe that it is an urgent need, and we need to service what we can as soon as possible.
Hardik Rawat
This is helpful. Another I’d like to ask something about the R and D. So, firstly want to understand that the two new platforms, the tactical drones and the middleman logistic drones, are we on track with regards to the development as to the earlier timelines? If you could reach here expected timelines where we should come up with the prototype and then eventually a commercially viable product.
Ankit Mehta
So, on the Zold platform, which is our tactical drone, we are already flying prototypes of that platform, and we are on track for deployment of the development of the platform. In terms of the aircraft itself, there are a lot of peripheral developments that we also need to do once the platform is developed with respect to the final capabilities that are desired for these programs. So, those developments will continue happening. But we will have a lot of we’ve already had good progress on the platform development itself, so we do expect that we will be on relative track to the timelines of development for those programs. On the middlemine logistics platform, our first, you can say test platform or you can say our first technical prototype is expected to be flying in about 2/4 time. Okay.
Hardik Rawat
So, what will your R&D outlook?
Operator
Sir, may I request you to rejoin the question queue.
Hardik Rawat
Sure. Thanks. I have no questions. Thank you so much.
Operator
Thank you. The next question is from the line of Balasubramanian from Arihant Capital. Please go ahead.
Balasubramanian A
Thank you so much for the opportunity, sir. So, my first question regarding this U.S. nanodrone Investments and Estonia partnerships, how does this align with our broader strategy?
Ankit Mehta
See, when we look at our portfolio and we’ve been over the years wanting to build a comprehensive portfolio of uncrewed electric aircraft that we can use to service various requirements for our customers in that portfolio, one of the elements that we have not been able to work directly on was the nanodrone category. And therefore when we today go to our customers who are using our products at the last mile, we will be able to service those customers with an added platform that can work seamlessly with our technology as well and create a more comprehensive suite of solutions for them. Secondly, when we look at Resonia, it is a very interesting partnership where we will be in a way deployed for the entire life cycle of the power construction and operating and maintenance business. Where starting from making sure that the planning for tower construction is more efficient to ensuring that construction can happen in a timely manner, including leveraging a platform like YETI to do support in last mile tower construction. Because there are a lot of challenges of the geographies these towers have to be rested in and the emergent situations people may face on the ground. And last but not the least once the tower is constructed, in making sure that the operations and maintenance of the tower is also well taken care of using the technology that we have developed, including LIDAR payloads and many other types of inspection payloads that we are developing on our platform. So, it’s a more of a 360 degree partnership for enabling drone technology in service of transmission car process.
Balasubramanian A
So, my second question, what is the commercialization risk for this Golden City? I think this platform are still under prototype or POC stage and so like whether the industry is ready to adopt these products and then we can expect commercializations and underst how these products are equipped to compete with competitors like General atomics, switch plate etc.
Ankit Mehta
See Zolt is a platform that we conceived as a response to several MAKE programs that the government of India had come up with. Therefore their commercialization and their applicability in terms of applications is directly connected to classification of those MIP2 programs which also is something that is dependent on our ability to develop the platform and deliver the right capability. We are fairly ahead in terms of our development there with respect to those programs. And we will continue to push ourselves to deliver on those programs in a timely manner and as aggressively as possible. So, therefore since it is built for a specific opportunity, the commercial risk or commercialization risk is in a way mitigated by those opportunities. And while that is happening, there are because of our announcement at the Aero show, there is a lot of interest on that platform otherwise as well now, and we are responding to that interest as and then receive those inquiries. It is pretty active in terms of interest. On the other hand, GETI as a platform, if you look at the partnership we’ve just announced with Dr. Sonia, in a way is an early sign of the fact that capability or that broad class of capability is useful. And we are continuing to explore partnerships and areas where we can specifically get into co development programs for this platform that can enable us to build specific solutions for some industries that makes it a very useful platform. But the usefulness and applicability of the platform is something we are very confident about going forward.
Balasubramanian A
Oh, so actually this platform…
Operator
Sorry to interrupt you, but I would request you to rejoin if more questions.
Balasubramanian A
Thank you, sir.
Operator
Thank you. The next question is from the line of Vipul Parekh from ABC Capital. Please go ahead.
Vipul Parekh
Hi. Thank you for taking my question. I just have a couple of questions. In light of the unfortunate recent terror attack in Pakistan. After this, can we expect some faster procurement or more RSPs in the near future or have you already started seeing some momentum in this thing where we operate?
Ankit Mehta
Absolutely. I think as you’ve seen the noise as usual around any new war is around drones. So, I think it does change a little bit of the sense of urgency and the traction that is needed on the sector. And at this point in time, while I can’t specify whether there is or there is not demand insofar as the sector is concerned, if I were to project what the government definitely should be looking at is looking at drones that can pick out targets, which is drones for intelligence, surveillance and reconnaissance, as well as look at drones that can cause an end effect on the other side. So, that is something which is very clear and it is more of a, I would say a requirement emanating out of what has been visible in all the wars globally. And even in our instance it has already been. On the other hand, there are added capabilities that will be required, such as the capability of resisting electronic warfare with respect to GNSS, denied navigation, etc. So, these are the additional capabilities that we believe will be very useful in situations like these, this is essentially us projecting on what is required in general for such a conflict going forward.
Vipul Parekh
Thank you so much. I just have one more question also. Like, do we foresee any higher adoption of our solutions across the armed forces? And in general, what does it mean for our business?
Ankit Mehta
See last, I would say last year has been a very visible year of adoption of our technology with the defense forces. And from my understanding and awareness, our drones are deployed in many counter insurgency and counterterrorism operations on a daily basis. They have not just helped save lives, they have helped identify armed terrorists and insurgents. And our forces have been able to run successful missions because of the identification we were able to provide insofar as our technology involvement is concerned. And therefore there are very clear indications that what we build is effective, is useful and is being deployed on a daily basis.
Vipul Parekh
Okay, thank you so much.
Operator
Thank you. The next question is from the line of Sahil Vora from MNS Associates. Please go ahead.
Sahil Vora
Hello. Good morning, sir. I have a couple of questions. First question is, you have launched several products at Aero India recently. How do you expect these products to fructify into order book? Have you received any customer inquiries about these products yet?
Ankit Mehta
Yes, absolutely, Sahil. We are already doing demonstrations of the prototypes and the near production versions of these platforms. Genuine interest in these capabilities. Like I said, these capabilities are very critical in the present environment globally, where electronic warfare and capability around multi role assets is becoming an increasing reality of what is required on top. Okay, that’s great. So, my next question is I want…
Operator
You may go ahead, sorry.
Sahil Vora
Yeah, so I wanted to understand how we go about our product choices and R&D efforts. Do we have any demand from the customers and then we start R&D or do we do it on our own?
Ankit Mehta
See, if you look at the example of Zolt. We got into the development of Zolt initially because we were very clear that there is a demand from the customer with respect to these programs that they had launched. However, as we deployed our technology, such as switch drone and the quadcopter drones, we were very and they were very repeated interactions with the customer that they want something more capable and also something which is capable of carrying something that can carry a payload. However, when we look at any product category, we usually look at these product categories from the perspective of dual use. And therefore when we look at dual use, we have to convince ourselves that there is a need for the technology for the civil markets as well. And only when we are convinced about the need for A technology for both defense and civil users is usually when we get into a proper development mode and look at creating various variants of that technology for multiple market opportunities. So, Zolt is no different. And we have taken that decision after careful consideration of the 360 degree evaluation. And yes, motivation for building certain class of platforms or the timing for building certain class of platforms may be timed according to the demand signals of the customer.
Sahil Vora
Understood, sir, understood. I’ll return the queue if I have further questions. Thank you.
Ankit Mehta
Thank you, Sahil.
Operator
Thank you. The next question is from the line of Sahil Singh from AS Investments. Please go ahead.
Sahil Singh
Hello. Hi. Am I audible?
Operator
Yes.
Sahil Singh
Yeah, thank you, sir. So, I had a couple of questions from my end. So, my question is, Raji, like we have seen recent partnerships with Idea Force has engaged into like for example, one with Vantage Robotics and other. Like, we have partnered with Esonia. So, how do you expect these investments to add to our top line and give it like an export, approximate timeline? That would be great.
Ankit Mehta
See, we have observed in the case of Nanodrones, the government of India has procured certain nanodrones from competing, you can say, vendors. And therefore, at least on the Indian side, we do see demand of that technology. And it is relevant for certain types of in room or in building interventions as well as these can be very quiet and very useful for close range operations. So, from that perspective, Nanodrones is a requirement that is important for our forces, especially when they’re looking at anything close range in terms of contact with the adversary or with the target. Therefore, we see opportunities on that side and particularly for special forces and many other use cases. It is a platform that is under the phase of induction by many of them. On the other hand, with respect to the work on other platforms, I already mentioned that we are looking at a lot of opportunities, and we are creating partnerships wherever we can to create visibility of the end use of several products that we build.
Sahil Singh
All right, and so like, what is your current outlook on the recent development which have been going on, sir? I feel like it’s positive for the defense sector at large. How do you see that?
Ankit Mehta
So you know, in terms of the defense sector, yes, I think the need for assisting our forces is very real at this point in time, both in terms of what we can do with the existing inventory that is there with them. Also with respect to what may be needed as we envisage and plan our strategies of what is happening on ground. So, I do see that it is going to be a need for our defense industry to Step up and help to the best extent possible. Our forces deliver the response and support and defense that we need to create for our country.
Sahil Singh
Any pipeline coming through.
Operator
Sorry to interrupt you sir, but I may request you to rejoin the question queue.
Sahil Singh
All right, thanks for the opportunity.
Vipul Joshi
Thank you.
Operator
[Operator Instructions] The next question is from the line of Vineet Gala from Xylem Investments. Please go ahead.
Vineet Gala
Hi, hello. Am I audible?
Operator
Yes sir, you are audible.
Vineet Gala
Sir, we are in a very tricky position with the ongoing heavy capex of around 5560 odd crores INR while our execution is quite muted. So, how do we approach this and what is the capacity of our balance sheet if the new orders continue to remain, say elusive? So Vineet, I’ll let Vipul answer the question.
Vipul Joshi
Hi Vineet. So, right now we are fairly capitalized from our overall cash balance perspective and overall expansion from a capex perspective is purely on the product development side and that is helping us to add further markets. Also adding to opportunities and as Ankit enumerated in his speech, as well as the last few questions from others people that how some of these efforts have helped us in opening up markets also and addressing the current need that our users have domestically is where we will be able to capitalize on our investments in the recent past.
Vineet Gala
So, is there like, do we see the newer platforms or whatever we are spending on R&D to be commercialized anywhere in say like next 3, four quarters?
Vipul Joshi
So, we already have capitalized two of our products in the last quarter. one is on the hybrid platform and one of our quadcopter platform as well. And these are all again game changers from our previous specifications on our hybrid platform we already increased our specification by 25% and the quad range platform that we have launched, which is our Netrap five series, is an absolute differentiator from what capacities and capabilities are available in the market at the moment. And especially the Genesis denied capability which is not prevalent or being showcased will be something that will class lead for this product line.
Ankit Mehta
Also Vineet, we are addressing certain opportunities for these platforms where demonstrations are also happening. And yes, expectations from these demonstrations and opportunities is to have business on these platforms in the timeframe you mentioned. But like it is very important in this domain we typically wait for the orders to come in our hand on those aspects.
Vineet Gala
Fair enough. My last question is on…
Operator
Sorry to interrupt, sir, but I may request you to rejoin the question queue for more questions.
Vineet Gala
Thank you.
Operator
The next question is from the line of Hardik Rawat from IIFL Capital. Please go ahead.
Hardik Rawat
Thanks for the follow up opportunity. My question was connected to the RD bids. Just wanted to understand what are we planning, what rupee value amount we expect to spend on RD in the coming two years. We still operationalize these two new platforms, tactical and logistics.
Vipul Joshi
Hi, Hardik, Viku here. So, Hadik, last year we introduced roughly about 76 crores of fresh capital in R&D in our ongoing projects for the at least coming year round. The visibility would stay on the similar line and subsequently, once our larger platforms comes closer to maturity, and we get into the phase of creating more mules and their early prototypes to productionize, we will be able to give a fair estimate as to what those size of investment would be.
Hardik Rawat
Could you Repeat that number? 76 crores or 56 crores?
Vipul Joshi
Yes.
Hardik Rawat
So, roughly 77 crores is what we have incurred in the current fiscal and should probably continue at least for the next one. Yes. Another question that I had was, you know, you mentioned the U.K. FTA and you know, ramp up in European defense spending. So, question there with regards to firstly, do we have any history of supplying to Europe? If yes, then you know, to what extent and you know, how big an order size have we supplied. And secondly, with regards to the U.K. FTA, you mentioned that you know, that there will be benefit of the duty. Just wanted to understand what duty do our drone products currently attract in the U.K. and how will it fall probably relative to other countries. What, what’s the quantum of, what’s the exact quantum of benefit that we’ll reap out of this FDA?
Ankit Mehta
See in terms of what is happening in NATO, I’ll give an example of a country like Germany, the defense spending is expected to go up by at least 1.5 times in a very short time span because of the pressure on the NATO spending and the mandates in NATO. So, that in general, if you look at new dollars and where they will go, it is very evident that a lot of that spending for most countries is going to happen through at least some part of it going to drone technology. So, that is one part. But we’ve not had a traditional events in Europe per se, but we do have partners who are present in U.K. so we are actively pursuing opportunities in U.K. in terms of partnerships in Europe. It’s something that we will get on to now and I already did last month a visit to try and understand what are the possibilities of partnerships? The European continent as well in terms of U.K. duty structures in general, it is a critical aspect from the founder. We have relative duty from respect to other countries either in rest of the world, around China or many other countries where the duty structures will help us be better positioned than our competition. The exact duty amount because we haven’t yet delivered a finished product in terms of sales, I will have to get back to you. In terms of what we incur, 20% is typically the VAT.
Hardik Rawat
Okay. So, we’ll be saving so that 20% will go to zero versus it will stay 20% probably for other countries which don’t have anything that helps. Yeah. If I could speed one more question and was with regard to the networking capital intensity while our we’ve seen a decline in revenues but our trade to fuel position has in fact gone higher. So, just wanted to understand and this is despite a lower execution that we’ve done in the fourth quarter. So, just wanted to understand how do you see the networking capital situation? Any specific reasons of its sharp innovation in FY ’25 and on a normalized level what should we expect here?
Vipul Joshi
So, I think obviously the factors stay there because of the top line being on the lower end has impacted the overall numbers on the networking capital. As we go ahead and build in the order book and start delivering, we are hoping that we will be able to bring down the overall numbers. And while we have done a significant amount of collection last year, the controls on overall trade receivables etc. is still going on.
Ankit Mehta
Main impact is still coming broadly is because of the overall top line impact and nothing else.
Hardik Rawat
And one last question, if I could squeeze in, would you like to, I.
Operator
May I request you to join the question queue please?
Hardik Rawat
Sure. Thank you so much.
Operator
Thank you. Ladies and gentlemen, in interest of time this would be our last question for today. I now like to hand the conference over to Mr. Ankit Mehta CEO ideaForge for closing comments.
Ankit Mehta
Thank you everyone for your questions. I think at this point in time the events like the Pehalgam terror attack continue to remind us of the reason why we started building drones as a product in the first place. And this happened in the aftermath of the 2611 attacks when we decided that we need to take the technology capability that we have and convert to a product for our country. We continue to believe that our country needs to create leadership in this domain to creation of resilient, high performance, reliable and autonomous capabilities. And ideaForge is firmly on the path and is leading the way. I also would like to reflect on the clarion call of our honorable Minister of Commerce and Industrial for Deep Tech Innovation. we are glad to champion that cause for over 18 years now. As one of the early deep tech ventures of our country, ideaForge has the potential to lead the path to a product nation for India. I once again sincerely thank you all for your support and faith in ideaForge. Jai Hind.
Operator
Thank you on behalf of ideaForge Technology Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.