ideaForge Share Price Drop as Q1 Profits Fall 94%

Shares of ideaForge Technology fell nearly 10% to an intraday low of ₹740 on July 30, after the company reported weak earnings for the quarter ended June. The weak performance was due to a 321% YoY rise in raw material costs, reaching ₹56.1 crore, indicative of the business development initiatives taken by the company.

In Q1 FY25, ideaForge outlined key developments including prototyping a fog penetration radar with GalaxEye, expanding drone-as-a-service (DaaS) and middle-mile logistics with TechEagle. The company also completed high-altitude trials in the Himalayas and is advancing its NETRA and SWITCH platforms.

At 11.08 AM IST, ideaForge share price were down over 10% at ₹769. The stock has gained 8% in the past six months, underperforming the Nifty 50 which gained 15% during the same period.

Q1 FY25 saw ideaForge's net profit falling nearly 94% YoY to ₹1.8 crore and revenue falling over 11% YoY to ₹86.2 crore. In the year ago period, ideaForge's net profit was ₹18.9 crore and revenue was ₹97.1 crore, according to the press release shared by the company. ideaForge's net profit and revenue fell on a sequential basis as well.

The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of ideaForge declined by 73.6% YoY to ₹8.5 crore and EBITDA margin contracted to 9.8% from 33%.

ideaForge is a leading Indian unmanned aircraft systems (UAS) manufacturer, supported by investors like Qualcomm, Infosys, and EXIM Bank. Ranked 5th globally in 2023 for dual-use drones by Drone Industry Insights, the company has the largest operational deployment of indigenous UAVs in India, with a drone taking off every four minutes. Its UAVs have been used for over 500,000 flights.

ideaForge is a vertically integrated company featuring an in-house product development center, enabling us to design, develop, engineer, and manufacture indigenous unmanned aerial vehicles (UAVs). They are pioneers and market leaders in the Indian Unmanned Aircraft Systems sector, with UAVs boasting industry-leading specifications and capabilities. ideaForge has achieved the largest operational deployment of indigenous UAVs across India. In December 2023, the company was ranked as the 5th global dual-category (civil & defense) drone manufacturer by Drone Industry Insights, the world’s leading drone survey and analysis company.