ideaForge Q2 Loss Widens 43% YoY To INR 19.6 Cr

SUMMARY

On a sequential basis, the company managed to trim its net loss by 17% from INR 23.6 Cr

The company's top line recovered after taking a hit in Q1 FY26, growing 2.2X on a QoQ basis and 10% YoY to INR 40.8 Cr

Its expenses for the quarter increased 4% YoY and 51% QoQ to INR 63.5 Cr

Dronetech company IdeaForge’s net loss in Q2 FY26 magnified by 43% to INR 19.6 Cr from INR 13.7 Cr loss incurred in the year-ago period. On a sequential basis, the company managed to trim its net loss by 17% from INR 23.6 Cr.

The company’s top line recovered after taking a 85% YoY hit in Q1 FY26. In the quarter under review, ideaForge’s operating revenue increased 10% to INR 40.8 Cr from INR 37.1 Cr in the year-ago period.

This marked a near 220% improvement from the INR 12.8 Cr operating revenue reported in the previous quarter.

EBITDA loss contracted by 20% YoY to INR 8 Cr. Sequentially, EBITDA loss improvement showed a more significant improvement of 48% from INR 15.1 Cr in Q1 FY26.

Including an other income of INR 3.3 Cr, the company’s total income for the period improved by 3% YoY to INR 44.1 Cr. On the other hand, its expenses for the quarter increased 4% YoY and 51% QoQ to INR 63.5 Cr.

Despite the persistent losses that ideaForge has seen over the past five quarter, CEO Ankit Mehta said that the company has seen a reemergence of demand signals after a muted FY25 for the Indian drone industry.

“In Q2, we stayed anchored on preparation and delivery to fulfill our EP-5 (Emergency Procurement Cycle 5) order while participating in EP-6 opportunities. The results have already begun to show, and more will trickle down soon,” he noted.

The company claims to have seen a consistent demand from command level EP and run-rate business during the quarter. Emergency procurement by the Indian government refers to a fast-track mechanism that allows the armed forces to acquire essential equipment, goods and services on an urgent basis, bypassing the regular, more time-consuming procurement procedures.

ideaForge’s revenue mix for the quarter saw defence contracts contributing 63% to the company’s topline while civil contracts brought in the remainder 37%. The company said that its order book, as of October 28, stands at INR 238 Cr.

The company also doubled down on its efforts to expand globally during the quarter. In September, it’s wholly owned US subsidiary set up a joint venture (JV) with US-based ammunition component manufacturer First Breach. The JV, in which the the dronetech company will hold 50% stake, will engage in manufacturing and distributing specific unmanned aerial vehicles (UAVs) in the US.

“On the global front, our efforts to build on the work we have done so far continued in Q2. Our SWITCH and Q6 platforms now carry NATO Stock Numbers (NSN), reemphasising our standing as a credibleplayer in the cutting-edge UAV technology. And our partnership with First Breach Inc. to manufacture

and distribute drones in the US through a Joint Venture strengthens our presence in the US,” Mehta added.

Shares of ideaForge ended today’s trading session 1.40% lower at INR 490.05.