Ideaforge’s profits dwindle 89% in Q1 FY25

Drone manufacturer Ideaforge's revenue from operations declined by 15.7% to Rs 86 crore in Q1 FY25 from Rs 102 crore in Q4 FY24. However, the company remained profitable in the first quarter of the ongoing fiscal year, according to its quarterly result published on NSE.

The Mumbai-based company demonstrated strong financial standing during the previous fiscal year ending March 2024, marking a 68.8% year-on-year growth to Rs 314 crore with its profits increasing 41.3% to Rs 45.2 crore during the fiscal year ending March 2024.

However, the firm was unable to replicate FY24’s growth run in Q1 FY25 due to a decline in drone sales, which also eroded its profits.

The sale of unnamed aerial vehicles (UAVs) was the sole source of Ideaforge's operating revenue in the last quarter. The company also made Rs 6 crore from the financial assets tallying its overall revenue to Rs 92 crore in Q1 FY25 from Rs 108 crore in Q4 FY24.

For Ideaforge, the cost of materials for making drones accounted for 64% of the overall expenditure. As production scaled down, this cost decreased by 2.4%, dropping to Rs 57.6 crore in Q1 FY25.

The firm’s spending on employee benefits, finance cost, legal, professional advertising, and other overheads took its overall cost to Rs 91 crore in Q1 FY25 from Rs 93 crore in Q4 FY25.

With a 15.7% decline in quarter-on-quarter growth, Ideaforge's profits dropped by 89.3% to Rs 1.1 crore in Q1 FY25.

Ideforge's IPO was valued at Rs 567 crore, comprising a fresh issue of Rs 240 crore, with the remainder offered for sale. The company debuted on the stock exchange on July 23 with a share price of Rs 1,300, marking a significant 93% gain compared to its price band of Rs 638-672 per share at the time of listing.

Ideaforge’s share price is currently trading at Rs 761.95 (as of 12.42 PM). The company also hit its 52 weeks low share price at Rs 618 on 04 June this year.  According to Fintrackr’s estimates, its current total market capitalization stood at Rs 3,275 crore or $395 million.