Ideaforge Technology Limited — PPTs, 22-07-2025: Investor Presentation

**1. Financial Highlights:**

Revenue from operations for Q1 FY26 was ₹12.78 Cr, a 37.1% QoQ decline from ₹20.31 Cr in Q4 FY25. Gross margin improved significantly to 61.7% from 35.9% QoQ, driven by product mix. However, EBITDA margin stood at -118.5% and PAT margin at -184.3%, reflecting revenue impact with relatively flat expenses. The company secured a significant ₹137 Cr emergency procurement order, and its order book stood at ₹144.8 Cr as of June 30, 2025.

**2. Strategic Initiatives & Growth Drivers:**

The company is benefiting from renewed government focus on drone procurement, with ₹40,000 Cr allocated for the 6th cycle of Emergency Procurement and a ₹1 lakh Cr RDI Fund. Anticipation of the next PLI phase for drone manufacturers also presents a tailwind. Product development is active, with NETRA 5 industrialization, ongoing evaluations for SWITCH V2 & Q6 V3, and progress on YETI (logistics UAV) and ZOLT (tactical UAV).

**3. Business Developments:**

ideaForge UAVs were successfully deployed by the Indian Army during Operation Sindoor, showcasing long-range endurance and EW resilience. The company formed a strategic collaboration with HFCL for global market access and received ET NOW Machinist Super Shopfloor awards for Process Innovation and ESG.

**4. Market Position & Competitive Advantage:**

Ranked #3 globally in dual-use drones, ideaForge is a pioneer in India, holding 89 patents (granted + pending). Its drones are designed and tested for extreme Indian conditions, boasting low noise and radar signatures. Operational metrics include over 700,000 total customer flights, with a drone taking off every three minutes.

**5. Investor Implications:**

The substantial new order and increased government allocation signal strong positive growth potential for the drone sector. While gross margin improvement is positive, the current quarter's revenue decline and expanded losses highlight execution risk to monitor, as order fulfillment is planned for future quarters. Long-term value creation hinges on successful product development and market expansion.