Synopsis: Ideaforge Technology plunged sharply in today’s trade after its losses widened to Rs 34 crore in Q3 FY26 from Rs 24 crore last year, despite revenue growing by 79% YoY, mainly aided by higher expenses.
The shares of this company, engaged in the business of manufacturing Unmanned Aircraft Systems (UAS), are in focus after it reported a poor financial performance in the latest quarter of this financial year. In this article, we will decode this for you.
With a market capitalisation of Rs 1,790 crore, the shares of Ideaforge Technology Ltd reached a day’s low of Rs 409.15 per share, down 5 percent from its previous day’s closing price of Rs 430.15 per share. In the last one year, the stock has corrected by over 24 percent as compared to NIFTY 50’s positive return of 9 percent.
Q3FY26 Highlights
The revenue from operations for Ideaforge Technology stands at Rs 32 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 18 crores, up by 79 per cent YoY. However, on a QoQ basis, it reported a decline of 22 percent from Rs 41 crore. The company derived 88 percent of its sales from Civil segment, followed by 12 percent from its defence segment.
Also, operating loss (EBITDA) stood at Rs 27 crores in Q3 FY26 compared to Q3 FY25 EBITDA loss of Rs 17 crores. Additionally, on a QoQ basis, it reported an EBITDA loss of 11 crore. This signifies that the company’s losses widened significantly during both periods.
Coming down to its profitability, the company’s net loss stood at Rs 34 crore in Q3 FY26, which widened as compared to a loss of Rs 24 crore in Q3 FY25. Additionally, on a QoQ basis, its losses also widened from Rs 20 crore.
Net profit fell mainly because the company’s costs rose much faster than its sales. Material cost as a percentage of sales jumped sharply to 76 percent in Q3 FY26 from just 54 percent in Q3 FY25, which is a staggering 22 percent, showing that raw material spending increased significantly.
At the same time, overall expenses remained very high compared to revenue, and in some quarters, expenses were even higher than sales. For example, in Dec 2025, expenses were around 181 percent of sales. This means that even if sales look stable on paper, a big portion of revenue is getting consumed by raw materials, employee costs and other operating expenses, leaving very little profit at the end and pushing net profit lower.
Recent and Other Highlights
Coming to its order book highlights, the company has a robust order book of Rs 350.8 crore. They’ve achieved their highest-ever order bookings to date, about Rs 440 crore so far this financial year, driven by consistent demand from both defence and civil sectors.
Looking forward, management says they’re prioritising execution and plan to deliver around 40–45 percent of their open orders in the last quarter of the year. By the end of FY26, they’re targeting improved gross margins and a return to profitability.
In the latest quarter, they secured a Rs 100 crore order from the Indian Army for their new ZOLT and SWITCH V2 tactical UAVs, which are equipped with electronic warfare resilience. They also received an additional Rs 115 crore in orders from a mix of defence and civil customers.
Their UAVs are gaining traction, where it has completed over 150,000 customer missions this year alone and more than 850,000 missions overall. This shows customers are depending on them more, and IdeaForge is gaining valuable field experience.
Additionally, the company is also expanding in the civil and industrial sectors, collaborating with government agencies and private enterprises to provide drone-based solutions. They signed an agreement with C-DAC to integrate drones into India’s emergency response system, and on top of that, their new joint venture with First Breach Inc, launched just last quarter, is opening up opportunities in the US market.
IdeaForge Technology Limited designs, develops, produces, and sells unmanned aerial vehicle (UAV) systems for surveillance and security uses in India and overseas. It provides live drone video streaming (BlueFire Live!), ground mapping and control software (BlueFire Touch, GIS Pro), autopilot systems, and end-to-end data solutions (FLYGHT Cloud). IdeaForge Technology Limited also sells drones such as RYNO, Q6, Q4i, Netra V4 PRO, and SWITCH for military, mapping, and industrial applications.
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