ideaForge Q3 FY26 loss widens as orders hit Rs 440 cr

Why ideaForge’s Q3 print matters

ideaForge Technology, a key Indian unmanned aerial systems (UAS) player, reported a wider loss in Q3 FY26 even as revenue rebounded sharply year on year. The quarter highlighted a familiar contrast for the company: a strong order pipeline and rising defence procurement activity, but weak profitability and negative operating leverage.

The company also indicated that FY26 has been a “defining year” in terms of orders, and management is focusing on delivery execution in Q4 FY26. With earnings expected on 30/04/2026, investors are likely to watch whether the order book converts into revenue and whether margins stabilise.

Q3 FY26: Net loss widens despite 79% YoY revenue growth

For the quarter ended December 2025 (Q3 FY26), ideaForge’s revenue from operations rose 79.15% year on year to Rs 31.55 crore. Despite that growth, the company reported a net loss of Rs 33.85 crore for the quarter.

Pre-tax loss widened to Rs 35.93 crore in Q3 FY26 from Rs 20.28 crore in Q3 FY25. Operating performance also weakened, with EBITDA remaining negative at Rs 23.91 crore versus negative Rs 12.58 crore in Q3 FY25. The reported operating margin (OPM) for the quarter stood at -84.06%.

The latest quarter also marked the company’s fourth consecutive quarterly loss as per the provided consolidated snapshot.

Margin pressure: losses deepen as costs stay high

The quarter’s key issue was not demand visibility but the depth of operating losses. The data points to significant pressure on profitability, with negative EBITDA and deeply negative operating margins.

The company’s EBITDA margin was reported at -75.8% (as stated alongside the quarterly comparison), reflecting continued stress in the cost structure relative to sales. The broader context shared in the inputs also notes that a surge in expenses contributed to margin compression, aligning with the OPM figure of -84.06%.

For investors, the takeaway from Q3 is that higher revenue alone has not been enough to absorb overheads and execution costs in the period.

Q2 FY26 (Sep 2025): Higher revenue, losses still elevated

The preceding quarter ended September 2025 (Q2 FY26) showed a better revenue base but continued losses. Sales rose 9.87% year on year to Rs 40.76 crore in Q2 FY26 (September 2025 quarter) compared with Rs 37.10 crore in Q2 FY25.

However, profitability remained weak. The company reported a net loss of Rs 19.62 crore in Q2 FY26, compared with Rs 13.73 crore in Q2 FY25. Pre-tax loss in Q2 FY26 was Rs 19.46 crore.

The Q2 operating margin was also negative, with OPM at -27.67%.

Record order book: Rs 440 crore as of 31 December 2025

The most supportive data point in the release was the order book. As of 31 December 2025, ideaForge reported an order book of Rs 440 crore.

CEO Ankit Mehta said FY26 has been a defining year so far, adding that the company has “booked the highest quantum of orders” in its two-decade history, with a sizable chunk coming in Q3. Management’s stated priority is execution, and it expects to deliver around 40-45% of open orders in Q4 FY26.

Separate commentary in the provided transcript also refers to an “open order book” figure of Rs 368 crore and indicates management expectations that post-deliveries could help improve the full-year gross margin, including a reference to crossing 50% after deliveries.

Defence demand rebound and procurement-led visibility

The company’s outlook is closely tied to defence procurement. The provided notes indicate that government projects and defence contracts contributed 63% of the company’s top line in Q2 FY26.

The broader sector context in the inputs points to a rebound in defence procurement activity, which supports near-term order inflows for UAV manufacturers focused on tactical and surveillance platforms. The company also referenced reported policy signals such as PLI 2.0 and R&D incentives for drones as positive industry indicators.

ideaForge has also flagged strategic initiatives to enhance UAV capabilities, particularly for defence applications.

MoD orders and the November stock reaction

On 17 November 2025, ideaForge shares rose up to about 12% intraday after the company disclosed two Ministry of Defence orders totalling Rs 107 crore. The orders included:

• Rs 75 crore to deliver AFDS or Tactical class UAVs with accessories within 12 months
• Rs 32 crore to deliver hybrid UAVs within six months

During that session, the stock was reported around Rs 522.35 intraday, and another snapshot noted the stock rising to Rs 519.90, up as much as 11.9% from a previous close of Rs 464.65. The same input set cited a market capitalisation of about Rs 2,223 crore.

Longer-term growth: high 5-year revenue CAGR and rising share

Over the last five years, revenue is cited as growing at a yearly rate of 62.05%, compared with an industry average of 9.05%. A separate growth table also shows a 5-year sales CAGR of about 63%.

Market share is also cited as increasing from 0.06% to 0.44% over five years. The narrative around the company positions ideaForge as a leading indigenous UAV manufacturer supplying defence, homeland security, and industrial use cases.

The data set also references ideaForge’s market leadership claims in the domestic UAS market, alongside details of product differentiation by weight class, endurance, take-off altitude, and communication range.

Balance sheet and efficiency signals to track

Some operating efficiency indicators shared in the inputs point to working capital strain. Working capital days are cited as rising from 270 days to 403 days, implying longer cash conversion cycles.

The same transcript-based snippet cites ROCE at -9.69% and ROE at -10.3%, reflecting negative returns during the loss-making period.

While the company is emphasising execution and improved margins, these indicators frame the operational challenge: converting orders into cash flows while controlling costs.

Key numbers at a glance

What to watch into Q4 and the upcoming result date

Management has indicated it expects to deliver around 40-45% of open orders in Q4 FY26 and aims to close FY26 with improved gross margins and turn profitable. The next key checkpoint is the upcoming earnings update expected on 30/04/2026.

Investors will likely track three items: the pace of deliveries against the Rs 440 crore order book, the trajectory of operating margins from deeply negative levels, and whether working capital intensity moderates.

Conclusion

ideaForge’s Q3 FY26 results showed strong year-on-year revenue growth but a deeper loss, underlining continued margin and cost pressures. At the same time, the company’s record Rs 440 crore order book and recent MoD orders provide visibility, making Q4 execution and the 30/04/2026 earnings update the next major catalysts to watch.