ideaForge returns to profit as September revenue more than doubles

ideaForge Technology Limited returned to a standalone profit of Rs 1.78 crore in the quarter ended September 30, 2026, after a Rs 15.30 crore loss a year earlier, as revenue from operations rose to Rs 91.285 crore from Rs 41.61 crore. The unaudited results were approved by the board on November 2, 2026.

What did ideaForge report for the September 2026 quarter?

ideaForge reported total income of Rs 97.481 crore for the quarter ended September 30, 2026, compared with Rs 44.809 crore in the quarter ended September 30, 2025. Revenue from operations supplied Rs 91.285 crore of the latest-quarter total, while other income was Rs 6.196 crore. In the comparable quarter a year earlier, operating revenue was Rs 41.61 crore and other income was Rs 3.199 crore.

The company recorded profit before tax of Rs 7.872 crore in the September 2026 quarter, reversing a loss before tax of Rs 15.302 crore a year earlier. Profit after tax was Rs 1.78 crore, against a Rs 15.30 crore loss after tax in the September 2025 quarter. Basic and diluted earnings per share were both Rs 1.56, compared with losses per share of Rs 3.45 a year earlier.

The reported quarterly profit followed a Rs 8.211 crore total comprehensive profit, which includes Rs 4.69 crore of other comprehensive income. In the corresponding prior-year quarter, total comprehensive loss was Rs 15.243 crore. The results are standalone figures and were subject to a limited review rather than a statutory audit.

How did ideaForge revenue compare with June and last year?

ideaForge’s September-quarter revenue from operations was Rs 91.285 crore, up from Rs 68.417 crore in the quarter ended June 30, 2026, and Rs 41.61 crore in the quarter ended September 30, 2025. The sequential increase was Rs 22.868 crore, while the year-on-year increase was Rs 49.675 crore. Total income also rose sequentially, to Rs 97.481 crore from Rs 70.286 crore in June 2026.

Other income was Rs 6.196 crore in the September quarter, compared with Rs 1.869 crore in the preceding June quarter and Rs 3.199 crore a year earlier. This means the revenue recovery was accompanied by higher other income, although operating revenue accounted for the largest part of total income in each of the three quarterly comparisons.

For the six months ended September 30, 2026, ideaForge reported revenue from operations of Rs 159.702 crore, compared with Rs 54.45 crore in the six months ended September 30, 2025. The half-year loss before tax narrowed to Rs 3.810 crore from Rs 38.084 crore. Profit after tax for the latest six-month period was Rs 5.441 crore, against a Rs 36.946 crore loss in the previous-year period.

The half-year profit after tax included a disclosed reversal of Rs 6.043 crore of excess tax provision relating to past years. ideaForge said the reversal was recorded during the June 2026 quarter after the relevant assessments had been completed. That item is separate from the September-quarter operating revenue increase.

What costs changed in ideaForge’s September quarter?

ideaForge’s total expenses were Rs 89.609 crore in the September 2026 quarter, compared with Rs 60.112 crore a year earlier. Material consumption was the largest expense at Rs 48.114 crore, up from Rs 23.586 crore in the September 2025 quarter. Employee-benefit expense increased to Rs 16.293 crore from Rs 13.945 crore, while depreciation and amortisation rose to Rs 14.731 crore from Rs 10.529 crore.

The increase in expenses was smaller than the rise in total income on a year-on-year basis. Total income rose by Rs 52.672 crore from the September 2025 quarter, while total expenses rose by Rs 29.497 crore. This changed the result before tax from a Rs 15.302 crore loss to a Rs 7.872 crore profit.

Against the June 2026 quarter, total expenses increased from Rs 81.968 crore to Rs 89.609 crore. Material consumption rose from Rs 38.179 crore to Rs 48.114 crore, while other expenses fell from Rs 15.921 crore to Rs 13.922 crore. Finance costs declined from Rs 2.039 crore in June to Rs 1.039 crore in September, but remained above Rs 0.922 crore in the year-earlier quarter.

ideaForge changed the depreciation method for property, plant and equipment from the written-down-value method to the straight-line method during the June 2026 quarter. The company said this reduced depreciation expense by Rs 46.9 lakh in the September quarter and increased profit before tax by the same amount. For the April-to-September period, depreciation was lower by Rs 98.7 lakh and the reported loss before tax was reduced correspondingly.

How did ideaForge use its July 2026 share issue proceeds?

ideaForge raised Rs 500 crore on July 10, 2026 through the allotment of 62,89,308 equity shares with a face value of Rs 10 each at an issue price of Rs 795 per share. The company said the proceeds were intended for repayment or prepayment of certain borrowings and accrued interest, working-capital funding, product development and general corporate purposes.

The company earmarked Rs 15 crore for issue-related expenses, leaving Rs 485 crore of net proceeds available for utilisation. As of September 30, 2026, it had used Rs 208.519 crore and had Rs 276.141 crore remaining. The disclosed utilised amount comprised Rs 120 crore for certain loan repayment or prepayment, Rs 65.419 crore for working capital, Rs 10 crore for product development and Rs 13.10 crore for general corporate purposes.

The remaining planned deployment included Rs 99.581 crore for working capital, Rs 80 crore for product development and Rs 96.90 crore for general corporate purposes. Of the Rs 15 crore allocated to issue expenses, ideaForge said Rs 11.456 crore had been used during the quarter, leaving Rs 3.544 crore unutilised for use in accordance with the placement document.

The July equity issue also affected the company’s capital base. Paid-up equity share capital was Rs 49.717 crore at September 30, 2026, compared with Rs 43.245 crore at September 30, 2025. During the September quarter, ideaForge also granted 1,13,256 employee stock options and allotted 31,735 equity shares upon exercise of stock grants.

What does the filing say about ideaForge’s business and review?

ideaForge reports a single operating segment: the manufacture and marketing of unmanned aerial vehicle systems used for security and surveillance. The filing applies Indian Accounting Standard 108 for this conclusion and does not provide separate revenue or profit figures by product line, customer category or geography.

The company’s statutory auditor, B S R & Co. LLP, issued a limited review report dated November 2, 2026. The auditor said nothing had come to its attention to indicate that the standalone financial statement did not make the required disclosures or contained a material misstatement. The auditor also stated that a review is substantially less extensive than an audit and does not provide an audit opinion.

ideaForge’s balance-sheet filing showed cash and cash equivalents of Rs 81.973 crore at September 30, 2026, compared with Rs 26.371 crore at March 31, 2026. Its cash-flow statement reported a Rs 55.157 crore net increase in cash and cash equivalents during the six months ended September 30, 2026, alongside Rs 409.511 crore of net cash generated from financing activities.

Conclusion

ideaForge’s September 2026 standalone result moved from a year-earlier loss to a Rs 1.78 crore profit as operating revenue increased by Rs 49.675 crore to Rs 91.285 crore. Total income of Rs 97.481 crore exceeded total expenses of Rs 89.609 crore, while the company’s disclosed depreciation-method change added Rs 46.9 lakh to quarterly profit before tax.

The next disclosed matter to watch is the deployment of Rs 276.141 crore of unutilised July share-issue proceeds as of September 30, 2026. This includes Rs 99.581 crore earmarked for working capital, Rs 80 crore for product development and Rs 96.90 crore for general corporate purposes, with the filing not providing a schedule for their remaining use.