Indian dronetech startup Garuda Aerospace has received the Securities and Exchange Board of India’s (SEBI) observation letter, clearing the way for its proposed initial public offering (IPO). The Chennai-based company plans to raise more than ₹750 crore through a fresh issue of equity shares, alongside an offer for sale (OFS) by existing shareholders, making it one of India’s largest public offerings in the fast-growing drone technology sector.
The regulatory approval marks a major milestone for Garuda Aerospace as it looks to capitalize on rising demand for drones across agriculture, defence, infrastructure inspection, logistics, and industrial applications. Backed by former Indian cricket captain MS Dhoni, the company is among the country’s leading drone manufacturers and service providers, benefiting from the government’s push for domestic drone production under the “Make in India” initiative.
SEBI Clears Garuda Aerospace’s IPO
With SEBI’s approval, Garuda Aerospace can now proceed with launching its IPO within the regulatory validity period.
According to the company’s filing:
- The IPO includes a fresh issue of equity shares worth over ₹750 crore.
- The issue will also comprise an offer for sale (OFS) by existing investors.
- The total IPO size is expected to exceed ₹1,000 crore, depending on the final OFS component.
IPO Snapshot
| Item | Details |
|---|---|
| Company | Garuda Aerospace |
| IPO Status | SEBI observation received |
| Fresh Issue | ₹750 crore+ |
| Offer for Sale | Yes |
| Estimated Total Issue Size | Around ₹1,000 crore |
Where the Funds Will Be Used
Garuda Aerospace plans to utilize proceeds from the fresh issue to accelerate its growth strategy.
Key focus areas include:
- Expanding drone manufacturing capacity.
- Investing in research and development.
- Developing next-generation defence and industrial drones.
- Strengthening working capital.
- Supporting general corporate purposes.
The investment is expected to help the company scale production as demand rises across commercial and government sectors.
Strong Position in India’s Drone Market
Founded in 2015 by Agnishwar Jayaprakash and Rithika Mohan, Garuda Aerospace manufactures drones and provides Drone-as-a-Service (DaaS) solutions across multiple industries.
Its operations span:
- Precision agriculture.
- Defence and surveillance.
- Infrastructure inspection.
- Mapping and surveying.
- Logistics and industrial applications.
The company has also built one of India’s largest drone pilot training networks, supporting the government’s efforts to expand the domestic drone ecosystem.
Business Overview
| Segment | Services |
|---|---|
| Agriculture | Crop spraying and precision farming |
| Defence | Surveillance and tactical drones |
| Infrastructure | Inspection and mapping |
| Enterprise | Drone-as-a-Service (DaaS) |
| Training | Drone pilot certification programs |
Financial Performance
Ahead of its IPO, Garuda Aerospace has continued to improve its financial performance.
According to available filings:
- FY25 operating revenue: ₹123.5 crore, up 12% year-on-year.
- FY25 net profit: ₹18.4 crore, up 41% year-on-year.
- In the first half of FY26, the company reported:
- Revenue: ₹41.2 crore
- Net profit: ₹11 crore.
The improvement reflects growing adoption of drones across commercial and government use cases.
Riding India’s Drone Growth Story
Garuda Aerospace’s IPO comes as India’s drone industry continues to expand rapidly, supported by:
- Government incentives for domestic manufacturing.
- Increased defence spending.
- Precision agriculture initiatives.
- Infrastructure digitization.
- Industrial automation.
The company is expected to benefit from rising investments in indigenous drone technology as India seeks to reduce dependence on imported unmanned aerial systems.
Looking Ahead
SEBI’s approval brings Garuda Aerospace one step closer to becoming one of India’s first major listed drone technology companies. With a planned fresh issue exceeding ₹750 crore and a total IPO size expected to surpass ₹1,000 crore, the company is positioning itself to capitalize on strong demand across agriculture, defence, infrastructure, and enterprise drone services. The funds raised are expected to support manufacturing expansion, research and development, and next-generation drone technologies as the domestic UAV market continues to mature.
Looking ahead, investor interest will likely depend on Garuda Aerospace’s ability to sustain revenue growth, expand its order book, and strengthen profitability in an increasingly competitive drone industry. As government support for indigenous drone manufacturing and commercial drone adoption continues to grow, the IPO could become a key milestone for India’s emerging aerospace and unmanned aviation ecosystem.
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