Summary
ideaForge Technology Limited - Q3 FY 2026 Earnings Call Summary Friday, January 23, 2026 11:00 a.m. IST
Event Participants
Executives 2 Ankit Mehta (CEO), Vipul Joshi (CFO)
Analysts 8 Dipen Vakil, Hardik Rawat, Ishani Jain, Jai Chauhan, Jatin Jadhav, Mithun Aswath, Nikhil Gupta, Shubham Thorat
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Order Inflow (YTD) | ₹440 crores | Highest annual quantum in company history; includes ₹115 crores from small orders. |
| Order Book (Current) | ₹368 crores | High revenue visibility; includes ₹102 crores in large opportunities added in Q3. |
| Open Order Revenue Recognition | 40% - 45% | Management guides to recognize this portion of the open order book within Q4 FY26. |
| Gross Margin (Target) | 50%+ | Direct result of execution of higher-value programs and order mix in Q4. |
| Operational Flights | 150,000 | Count for the period; 850,000+ flights cumulatively to date. |
| Intellectual Property | 100+ Patents | Ongoing focus on indigenous R&D and EW resilience. |
Geographic & Segment Commentary
- Defence Segment: Primary growth driver with ₹100+ crores in emergency procurement orders for ZOLT and SWITCH UAVs. Focus has shifted to Electronic Warfare (EW) resilience and GNSS-denied autonomy as baseline requirements.
- Civil & Enterprise: Growth driven by law enforcement, geospatial applications, and forestry. Shift toward “Drone-as-a-Service” and software outcomes via the FLYGHT CLOUD platform to stabilize lumpy defence revenue.
- International (USA): Joint venture with First Breach is being operationalized to localize assembly and manufacturing. Strategy aims to bypass trade policy volatility and comply with U.S. defence ecosystem requirements.
Company-Specific & Strategic Commentary
- Electronic Warfare (EW) Leadership: Developed in-house CRPA antennas and visual positioning systems to maintain flight in GPS-denied and communication-contested environments.
- Modular Platform Shift: Moving away from monolithic product design toward a modular approach to respond faster to diverse government tenders across ISR, combat, and logistics.
- Strategic Partnerships: Collaborating with C-DAC for emergency response networks and partnering with DRDO/DPSUs to co-develop combat capabilities.
- Combat Capabilities: Transitioning beyond ISR; the ZOLT platform is now being equipped with munitions for multi-role combat missions.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Profitability | Positive (Q4 FY26) | Driven by high-volume billing and healthier gross margins on current deliveries. |
| Annual Break-even | Target FY26 | Management aims for full-year break-even supported by Q4 order execution. |
| Delivery Timeline | 12 Months | Most current Emergency Procurement (EP) orders are executable within a 1-year window. |
| YETI Platform | H2 FY26 | Propulsion testing in H1; advanced prototype expected to fly by end of the year. |
Risks & Constraints
| Risk | Context |
|---|---|
| Supply Chain Constraints | Geopolitical conditions and aggressive global postures are creating shortages in subsystems/components. |
| Revenue Lumpiness | Heavy dependency on execution of specific large orders causes significant quarter-on-quarter volatility. |
| Technical Obsolescence | Rapidly shifting military requirements (FPV drones, loitering munitions) require constant R&D and modular pivots. |
Q&A Highlights
Order Visibility & Pipeline
- Question: Are there more large orders expected in Q4? (Hardik Rawat)
- Answer: No large Emergency Procurement (EP) orders remain open; focus is now on run-rate business closures and long-term MAKE-II programs (Ankit Mehta).
Technical Capability
- Question: How does the drone navigate in GPS-denied environments? (Jatin Jadhav)
- Answer: Uses a proprietary visual positioning system (day/night) that creates its own reference maps and CRPA antennas to reject jamming signals (Ankit Mehta).
Revenue Model & Partners
- Question: What is the role of local partners in state tenders? (Jai Chauhan)
- Answer: Partners often act as lead bidders, providing local L1/L2 support and training, with payments typically structured within 30 days (Vipul Joshi).
International Expansion
- Question: What is the status of the African L1 pipeline? (Hardik Rawat)
- Answer: It remains a work in progress with increased customer visits and inquiries, though final conversion is still awaited (Ankit Mehta).
Key Takeaway
ideaForge reported a transformative quarter marked by a record YTD order inflow of ₹440 crores despite muted Q3 revenue numbers. The company successfully pivoted its strategy to address the Indian Army’s demand for Electronic Warfare (EW) resilient platforms, securing over ₹100 crores in emergency orders for its ZOLT and SWITCH UAVs. Strategically, the firm is moving toward a modular platform approach and expanding its US footprint via a JV to mitigate supply chain risks and trade volatility. Management guided for a strong Q4, expecting to recognize 40-45% of the current ₹368 crore order book at margins exceeding 50%, which is projected to bring the company to full-year break-even. While near-term performance remains tied to lumpy defence procurement cycles, the maturing run-rate business and a ₹20,000 crore domestic procurement tailwind provide a positive long-term outlook.
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