The company posted a net loss of Rs 23.5 crore in Q1FY26, compared with a net profit of Rs 1.1 crore in the same period last year. Revenue from operations plunged 85% year-on-year to Rs 12.7 crore, down from Rs 86.2 crore in Q1FY25.

This marks the fourth consecutive loss-making quarter for the company.

While total expenses fell 53% YoY to Rs 42 crore, the company reported a negative Ebitda of Rs 15.1 crore, compared with a positive EBITDA of Rs 8.5 crore in the year-ago period. However, the Q1FY26 EBITDA loss narrowed sequentially from Rs 17.4 crore in Q4FY25.

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Despite the weak financials, CEO Ankit Mehta remains optimistic, citing a Rs 137 crore defence order secured under the Centre’s fifth cycle of emergency procurement. The company expects this order to start reflecting in its revenue over the next 2–3 quarters.“The order followed rigorous technical evaluations and country-of-origin checks,” Mehta said.He also pointed to the company’s involvement in Operation Sindoor, where it demonstrated high-endurance drone capabilities. Mehta expects increased government focus on indigenous defence production to drive future growth.

Mehta said the government’s allocation of Rs 40,000 crore for the sixth emergency procurement cycle and the proposed Rs 1 lakh crore R&D innovation fund could significantly benefit drone manufacturers. He also highlighted the expected rollout of the next phase of the PLI scheme as a major upcoming catalyst for the sector.

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According to Trendlyne, the average analyst target price for Ideaforge stands at Rs 388, implying a 24% downside from current levels. Of the two analysts covering the stock, the consensus rating is ‘Sell’.

Shares of Ideaforge have fallen 18% year-to-date and are down 56% over the past two years. The company currently commands a market capitalisation of Rs 2,201 crore.

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