ideaForge Technology shares slide 5% after Q1 gross profit margin falls 49%

Shares of ideaForge Technology declined 5% to Rs 851.65 on the BSE on Tuesday after the company’s gross profit margin fell sharply to 49% in Q1FY27, compared with 62% in Q1FY26 and 68% in Q4FY26.

The company reported gross profit of Rs 33.6 crore, up from Rs 7.9 crore in the year-ago quarter. Revenue from operations stood at Rs 68.6 crore during the quarter, with the company executing over 20% of its opening FY27 order book, according to a regulatory filing released after market hours on Monday.

EBITDA turned positive at Rs 4.3 crore, marking another quarter of improvement in the company’s financial performance.


According to the company’s statement, global supply chain disruptions and component availability continue to pose challenges since the march quarter of FY26. However, the company remains focused on completing delivery of the opening order book of FY27 by Q3 as per customer timelines.

ideaForge Technology secured DGCA Type Certification for the Q6 V2 GEO UAV, expanding its addressable opportunities across advanced GIS and enterprise mapping applications for the domestic market.

The company also received a Letter of Intent (LoI) from the Government of India under the Research, Development and Innovation (RDI) Scheme for financial assistance of up to Rs 151 crore to develop its middle-mile logistics platform YETI, capable of lifting loads up to 200 kg and reaching ranges of up to 200 km depending on the load. The capital raise and RDI funding enhance the company's financial capability to support execution of its expanding order pipeline and accelerate new technology and product development initiatives.

Execution strong, profitability under pressure: JM Financial
Despite the decrease in gross profit margin, JM Financial maintained a Buy rating on the stock, retaining its target price of Rs 875. According to the brokerage, ideaForge Technology’s profit after tax was aided by a change in depreciation policy, which led to depreciation expenses being lower by Rs 52 lakh and reversal of tax provision of Rs 6.04 crore.

What management said
On order book visibility for FY27, co-founder and CEO Ankit Mehta said that the higher operational procurement limits for field commanders of Indian Defence Forces under DFPDS 2026 would accelerate procurement activities in Q3 and Q4, and that the company continues to see regular cycles on the civil side of the business that lean towards Q3 and Q4.

“We have made good progress in our development efforts of combat drone capabilities such as

air-launched effects and fuel-hybrid long-endurance capability for ZOLT. We are also actively developing long-range strike platforms, loitering munitions, and other capabilities through in-house and collaborative developments.” The CEO said, as per the regulatory filing on the BSE.

With these new capabilities and the company’s in-house strength around communication infrastructure for collaborative autonomy (multi-UAV operations under EW environments), ideaForge Technology targets to participate in the upcoming large opportunities from Indian defence forces.

He further stated “The public reports of large defence procurement of about Rs 20,000 crore through the Fast Track Procurement approach have started to see the light of the day, with one opportunity already in the RFP stage and several others in various stages of the approval pipeline.”