Garuda Aerospace FY26 Profit Up 41% to Rs 25.9 Crore Ahead of IPO

Chennai-based drone maker Garuda Aerospace posted a net profit of Rs 25.9 crore in FY26, up 41.1% from Rs 18.4 crore a year earlier, as it prepares a proposed Rs 750 crore IPO. Operating revenue climbed 66.8% year-on-year to Rs 206 crore from Rs 123.5 crore in FY25, according to a media report.

Earnings before interest, taxes and amortisation (EBITA) rose 31.8% to Rs 35.1 crore from Rs 26.6 crore. Total income for the year, including other income of Rs 26.5 lakh, stood at Rs 206.2 crore.

The topline split is nearly even between hardware and services. Drone and drone-component sales contributed Rs 99.4 crore of operating revenue, while services — the company's Drone-as-a-Service business — generated Rs 106.5 crore. Delivery charges added another Rs 15 lakh.

Growth is outpacing the top line on the cost side, though. Total expenses jumped 73.2% YoY to Rs 172.2 crore in FY26 from Rs 99.4 crore, faster than the 66.8% revenue growth. The company booked tax expenses of Rs 8.2 crore and reported no exceptional items.

Where did the money go?

Raw material consumption, Garuda's largest operating expense, rose 61.5% to Rs 116.8 crore from Rs 72.3 crore — a direct reflection of scaled manufacturing. Impairment losses on financial assets surged to Rs 11.1 crore from just Rs 6.5 lakh the previous year, a line worth watching as receivables grow.

Employee benefit expenses moved the other way, falling 16.7% to Rs 8 crore from Rs 9.6 crore. Depreciation and amortisation increased 13.3% to Rs 4.1 crore, while other expenses — professional fees, travel, maintenance and rent — stayed nearly flat at Rs 29.2 crore.

Co-founder and whole-time director Agnishwar Jayaprakash told shareholders the company expanded its manufacturing capabilities, Drone-as-a-Service operations, indigenous research and development, and strategic partnerships in domestic and international markets during FY26. He also flagged work in artificial intelligence, autonomous flight, data analytics and defence systems.

What's the IPO status?

The results land as Garuda moves through the listing pipeline. The company confidentially submitted draft IPO papers to the Securities and Exchange Board of India (SEBI) in April 2026 and received regulatory approval in August.

In March, the board approved raising up to Rs 750 crore through a fresh issue of shares. The offer-for-sale component could involve investors selling shares worth up to Rs 250 crore, according to reports. The updated draft red herring prospectus is not yet public.

Alongside the IPO track, Garuda disclosed a private placement of equity shares worth Rs 57.2 crore approved by its board in August. Investors in that round included Umasankar Nistala, Rakesh Pillai, Jitendra Rana, Vimaan Innovators LLP and Aditum Management. Proceeds are earmarked for business growth, working capital and loan repayments.

How big is the company?

Garuda says it has manufactured and sold more than 3,000 drones and partnered with three defence public sector undertakings. It has raised over USD 37 million to date from investors including Venture Catalysts, We Founder Circle and former Indian cricketer Mahendra Singh Dhoni.

Its last known valuation was USD 250 million, set after a USD 11 million Series B round led by Venture Catalysts.

The takeaway: a 41% profit gain on 67% revenue growth gives Garuda a credible pre-IPO story — but the Rs 11.1 crore impairment charge and costs growing faster than sales are the numbers public-market investors will probe once the red herring prospectus drops.