ideaForge returns to profit in Q2 as revenue jumps 124% to ₹91 crore

Key takeaways

• ideaForge Technology reported consolidated revenue of ₹91.29 crore in Q2 FY27, up 124% year on year.
• The drone manufacturer recorded a net profit of ₹6.46 crore, compared with a loss of ₹19.62 crore a year earlier.
• EBITDA improved to ₹23.23 crore from a loss of ₹7.99 crore.
• First-half FY27 revenue reached ₹159.87 crore, nearly three times the year-ago figure.
• The company completed field testing of its ZOLT hybrid UAV and launched a combat variant.
• It signed a ₹151 crore research funding agreement with the Technology Development Board for its YETI logistics drone.
• Despite the quarterly turnaround, operating cash flow remained negative during the first half of FY27.

ideaForge swings to profit in September quarter

Drone manufacturer ideaForge Technology returned to profitability in the second quarter of FY27 as revenue more than doubled, supported by stronger business activity and execution of its order book.

The company reported consolidated revenue from operations of ₹91.29 crore for the quarter ended September 30, 2026, compared with ₹40.76 crore in the corresponding period last year. Net profit stood at ₹6.46 crore, reversing a net loss of ₹19.62 crore in Q2 FY26.

The results were approved by the company’s board on November 2 and filed with the stock exchanges. The reported figures are unaudited consolidated results.

The turnaround is also visible sequentially. ideaForge had reported a net loss of ₹2.59 crore in Q1 FY27, meaning the company moved back into profit in the September quarter.

Q2 FY27 financial performance

The improvement extended beyond revenue. EBITDA, or earnings before interest, taxes, depreciation and amortisation, reached ₹23.23 crore, compared with a negative ₹7.99 crore in the year-ago quarter.

Financial metric	Q2 FY27	Q2 FY26
Revenue from operations	₹91.29 crore	₹40.76 crore
Total income	₹97.56 crore	₹44.05 crore
EBITDA	₹23.23 crore	-₹7.99 crore
Profit before tax	₹7.44 crore	-₹19.46 crore
Net profit	₹6.46 crore	-₹19.62 crore
Basic EPS	₹1.30	-₹4.49

Source: Company’s consolidated financial results filed with the NSE.

EBITDA margin improved to approximately 25.4%, compared with a negative margin of around 19.6% in Q2 FY26, based on the company’s reported EBITDA.

The improvement indicates that the company generated a stronger operating surplus as revenue increased. However, EBITDA does not account for depreciation, interest costs and taxes. The net profit figure provides a more complete view of the quarter’s bottom-line performance.

First-half revenue nearly triples

The company’s performance over the first six months of FY27 also shows substantial revenue growth.

Revenue from operations reached ₹159.87 crore in H1 FY27, compared with approximately ₹53.5 crore in the corresponding period of the previous financial year. This represents growth of roughly 199%.

However, the first-half profit picture was less straightforward. Consolidated net profit for H1 FY27 stood at ₹3.87 crore, compared with ₹4.32 crore in H1 FY26.

This happened because the company recorded a loss in Q1 FY27 before returning to profitability in Q2. The latest quarterly performance therefore represents a recovery, but the first-half figures show that the improvement has not yet translated into higher cumulative net profit.

ZOLT hybrid UAV completes field testing

Alongside its financial results, ideaForge announced progress in its unmanned aerial vehicle portfolio.

During the September quarter, the company completed field testing of its ZOLT Hybrid UAV, designed for long-range intelligence, surveillance and reconnaissance (ISR) operations.

The platform is reported to offer:

• Operational range of up to 100 kilometres.
• Endurance of up to six hours.
• Indigenous electronic warfare resilience capabilities.
• A long-range mid-wave infrared (MWIR) payload.

The company also launched a combat variant of the ZOLT platform during the quarter.

These developments are relevant to India’s defence technology market, where demand for surveillance, reconnaissance and unmanned systems has increased. Hybrid UAVs can combine the operational flexibility of electric propulsion with extended endurance, depending on their design and configuration.

However, field testing and product launches are not the same as large-scale commercial deployment. The company will need to secure procurement orders and demonstrate operational performance to convert development progress into sustained revenue.

₹151 crore funding agreement for YETI logistics drone

Another important development was ideaForge’s agreement with the Technology Development Board (TDB) for ₹151 crore in Research, Development and Innovation funding.

The funding will support the development of YETI, the company’s indigenous middle-mile logistics UAV platform.

YETI is designed as an all-electric aircraft with the capability to carry payloads of up to 200 kilograms and operate over distances of up to 200 kilometres, depending on payload and operating conditions. The company also intends the platform to address logistics requirements in very high-altitude environments.

The funding is structured as a long-term debt facility at a low interest rate, rather than a conventional equity investment. This distinction matters because debt funding does not directly dilute existing shareholders, although it creates repayment obligations.

The project could expand ideaForge’s addressable market beyond smaller surveillance and reconnaissance drones into heavier logistics applications. Potential use cases include transporting supplies to difficult-to-access locations and supporting infrastructure operations.

The platform remains under development, and the funding agreement should not be interpreted as confirmation that commercial deliveries or large customer orders have already begun.

Order execution and procurement opportunities

Co-founder and CEO Ankit Mehta said the September quarter saw continued progress in order-book execution, new product development and preparations for upcoming procurement opportunities.

He also highlighted the importance of sustaining execution in the second half of FY27 while bringing new platforms closer to commercialisation.

For ideaForge, the ability to convert its development pipeline into customer orders will be important. Defence procurement can involve extended evaluation, testing and approval processes, which can affect the timing of revenue recognition.

The company’s performance may therefore vary between quarters depending on the delivery schedule of large orders and customer acceptance milestones.

Cash flow remains an area to watch

The return to quarterly profitability is encouraging, but investors also need to examine cash generation.

The company’s exchange filing reported negative consolidated cash flow from operating activities of approximately ₹78 crore for the first half of FY27. This means its operating activities used cash during the period despite the reported accounting profit.

Working-capital movements, including changes in inventories, receivables and other operating balances, contributed to the cash outflow.

This does not negate the improvement in Q2 earnings, but it highlights why revenue and profit alone are insufficient measures of financial health. The company will need to manage collections, inventory and supplier payments as its business expands.

The Bigger Picture

ideaForge’s results reflect the growing commercial importance of India’s domestic drone and unmanned-systems industry. Defence requirements, surveillance applications and logistics challenges are creating opportunities for companies that can develop locally engineered platforms. The company’s ZOLT and YETI programmes show an attempt to expand from established drone applications into longer-range and heavier-payload systems.

The financial turnaround is an important milestone, but the next phase will depend on converting technical development into repeat procurement orders, consistent deliveries and cash generation. The ₹151 crore TDB funding agreement provides support for product development, while also creating expectations that the company will advance the YETI programme towards practical deployment.

Looking Ahead

ideaForge will enter the second half of FY27 with a stronger quarterly earnings position and a broader product pipeline. Investors will watch whether the company can sustain revenue growth, execute its existing order book and secure new defence and enterprise contracts. Commercial progress on ZOLT and YETI will be particularly important to its longer-term growth plans.

The next test is whether the Q2 turnaround can become a consistent financial trend. Stronger operating cash flow, improved working-capital management and repeatable profitability will be just as important as new product launches. For ideaForge, the opportunity is to turn its engineering capabilities and growing procurement opportunities into a durable business.