Shares of ideaForge Technology, a prominent player in the drone manufacturing sector, are under scrutiny following the company’s disappointing financial results for the quarter ending March 2025. The company reported a staggering net loss of ₹26 crore, a sharp decline from the net profit of ₹10 crore recorded in the same quarter last year. This financial downturn reflects broader challenges within the drone industry, particularly exacerbated by the general elections and delays in government procurement initiatives.
For the March 2025 quarter, ideaForge's revenue plummeted by 80% year-on-year, falling to ₹20 crore from ₹102 crore during the same period in 2024. The company also reported an EBITDA loss of ₹17 crore, a stark contrast to the profit of ₹20 crore achieved in the previous year. The EBITDA margin dropped dramatically to -19.6% in FY25, compared to 27.4% in FY24, indicating significant operational challenges.
The company's management attributed these declines to a slowdown in the broader drone industry, which they noted was influenced by the general elections in the first half of the fiscal year and sluggish progress on procurement initiatives. Despite these setbacks, they remain optimistic about future growth, citing a healthy opportunity pipeline. The L1 opportunity pipeline, which includes potential contracts, stood at over ₹400 crore at the end of the December 2024 quarter.
Management expressed that while there were no order book conversions in the fourth quarter, they are witnessing increasing momentum in international opportunities and partnerships. They are committed to expanding the global market presence of Indian drones, particularly through a partnership with Resonia, a part of the Sterlite Group, aimed at revolutionizing the energy sector using drone and robotics technologies.
For the full financial year 2025, ideaForge reported a net loss of ₹62.28 crore, compared to a net profit of ₹45.27 crore in FY24. The overall sales for the year also fell by 48.66%, from ₹314 crore in FY24 to ₹161.22 crore in FY25. The gross margin for FY25 was recorded at 33%, a decrease from 49.9% in FY24, largely driven by a shift in the product mix delivered throughout the year.
As a publicly traded company, ideaForge made its market debut in July 2023 at an IPO issue price of ₹672 per share. Initially, the stock performed well, doubling in value on its first day of trading and reaching a high of ₹1,344. However, since that peak, the stock has faced significant declines, down 72% from its highest point. As of May 8, 2025, shares of ideaForge Technology Ltd. settled at ₹381.70, reflecting a year-to-date decline of nearly 40%.
Investors will be closely watching the company’s performance in the upcoming trading sessions, particularly in light of its recent financial disclosures. The significant drop in revenue and the reported losses raise concerns about the company’s operational viability and future growth prospects.
Despite these challenges, the management team remains hopeful, emphasizing that they are seeing healthy progress in their opportunity pipeline, which could pave the way for recovery in the coming quarters. The company’s ability to navigate the current landscape and capitalize on emerging opportunities will be crucial for its future success in the competitive drone market.
As the drone industry continues to evolve, ideaForge's strategic partnerships and focus on innovation will be essential in overcoming the hurdles posed by the current economic environment. Investors and stakeholders will be looking for signs of recovery and growth as the company works to stabilize its operations and enhance its market position.
