Ideaforge Shares Tumble Over 7% After Release of Q2 FY25 Results

ideaForge Technology, a pioneer and market leader in the Indian unmanned aircraft systems (UAS) sector, has announced its unaudited financial results for the quarter ending September 30, 2024.

Ideaforge’s Financial Performance 

During QFY25, the company reported revenue from operations of ₹371.0 million, compared to ₹237.3 million in Q2FY24. The gross margin for the quarter was ₹91.2 million, reflecting a margin of 24.6%.

For 1H FY25, ideaForge achieved revenue from operations of ₹1,232.9 million, a slight increase from ₹1,208.0 million in H1FY24. The gross margin during this period was ₹378.0 million, with a margin of 30.7%.

Q2 FY25 Several Highlights 

Several key highlights emerged from the quarter. ideaForge obtained DGCA Type Certification for its Q6 V2 UAV, marking a significant milestone in compliance and operational readiness. The company also initiated the FLYGHT Franchise—a Franchise Owned Franchise Operated (FOFO) model aimed at enhancing its Drone-as-a-Service (DaaS) business.

Additionally, ideaForge filed 6 new patents and was granted two new patents during the quarter, reinforcing its commitment to innovation. The company showcased next-generation technology to customers at high altitudes during HIMTECH 2024. Furthermore, it onboarded new value-added resellers and partners in the U.S. market, expanding its global footprint. To cap it all, ideaForge received an upgraded corporate credit rating of CRISIL BBB+/Stable from CRISIL, reflecting its strong financial standing.

Commenting on the Results, Mr Ankit Mehta, CEO, said, “The second quarter of the year for us has been a period of doubling down on our initiatives. Our long-term efforts of pushing indigenisation and elimination of the use of critical sub-systems from geographies of concern are fructifying, and customers are actively thinking of looking under the hood to ensure there are no vulnerabilities due to the wrong country of origin. We continue our efforts in the new technology and product development and are making substantial progress on this front with a few early field tests and demos already underway. We filed six new patents in this quarter and two of our patents were granted as well, taking our global portfolio to 78 patents.” 

He further added, “Our paid PoCs for Drone-as-a-Service (DaaS) even for enterprise customers are proving helpful in providing us invaluable insights to make it robust and effective. The initiation of the FLYGHT Franchise – a Franchise Owned Franchise Operated model for DaaS will help us scale up the DaaS business. On the international front, due to our increased presence in the US, we are also witnessing interest in our products and solutions from across the globe, and we are working diligently on these opportunities. There has been a shift in the timeline for progress in large opportunities due to the reduced pace of capex spending by the government, and we are tracking those opportunities closely.” 

He added, “Our faith in the ability of drone technology to make a positive and meaningful impact is bolstered by the extensive use of drones during recent floods in Vijayawada and even in the US in Florida after Hurricane Milton. I am confident that in the coming times, drones will become ubiquitous for use in security, governance and disaster response, and ideaForge will continue to lead and push the boundaries of technology in this domain and drive its widespread adoption.”

On October 29, 2024, Ideaforge share price opened at ₹570.90 and touched the day low of ₹551.95 at 10:45 AM, reflecting a fall of ~8.16% from the previous close.

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