Garuda Aerospace's FY26 Profit Rises 41% to ₹25.9 Cr Ahead of ₹750 Cr IPO

Garuda Aerospace posted a net profit of ₹25.9 Cr in FY26, up 41.1% from ₹18.4 Cr a year earlier, as the Chennai-based drone maker gears up for a ₹750 Cr IPO. Operating revenue surged 66.8% year-on-year to ₹206 Cr from ₹123.5 Cr in FY25, according to the startup's annual report.

EBITDA climbed 31.8% to ₹35.1 Cr in FY26 from ₹26.6 Cr in the previous fiscal. Including other income of ₹26.5 Lakh, total income for the year stood at ₹206.2 Cr. The company bore ₹8.2 Cr in tax expenses and reported no exceptional items.

Sales of drones and drone parts contributed ₹99.4 Cr to the top line. Services brought in another ₹106.5 Cr, while delivery charges added ₹15 Lakh.

What did management say about the year?

Cofounder and whole-time director Agnishwar Jayaprakash told shareholders the company broadened its base across manufacturing and services. "During the year, we continued to strengthen our manufacturing capabilities, expand our Drone-as-a-Service (DaaS) operations, deepen our investment in indigenous research and development, and build strategic partnerships in India and international markets. We also advanced our capabilities in artificial intelligence, autonomous flight, data analytics, defence systems and specialised mission platforms," he wrote in a message accompanying the annual report.

Where does the IPO stand?

Garuda took the pre-filing route and confidentially submitted its draft IPO papers with SEBI in April. The markets regulator approved the listing in August. The startup has yet to file an updated DRHP for public access.

The board approved plans in March to raise up to ₹750 Cr through the fresh issue component of the IPO. Reports suggest the offer-for-sale component could see investors offload shares worth as much as ₹250 Cr.

Separately, the board greenlit a private placement of equity shares worth ₹57.2 Cr in August. The investors in that round were Umasankar Nistala, Rakesh Pillai, Jitendra Rana, Vimaan Innovators LLP and Aditum Management. Proceeds will fund business growth, working capital requirements and loan repayments.

How big is Garuda's business?

The company claims the title of India's largest drone maker, with more than 3,000 drones manufactured and sold. It also says it's the first drone company to partner with three defence PSUs.

Garuda has raised over $37 Mn to date from backers including Venture Catalysts, We Founder Circle and cricketer Mahendra Singh Dhoni. Its last known valuation was $250 Mn, set after an $11 Mn Series B round led by Venture Catalysts. The startup currently sits at Series B stage in the advanced hardware and technology sector.

Where did Garuda Aerospace spend in FY26?

Total expenses rose 73.2% year-on-year to ₹172.2 Cr in FY26 from ₹99.4 Cr in FY25. The main cost lines:

• Cost of materials consumed: The largest operational expense jumped 61.5% to ₹116.8 Cr from ₹72.3 Cr.
• Impairment losses on financial assets: Losses reached ₹11.1 Cr, against just ₹6.5 Lakh in the year-ago period.
• Employee benefit expenses: Personnel costs fell 16.7% to ₹8 Cr from ₹9.6 Cr.
• Depreciation and amortisation: Up 13.3% to ₹4.1 Cr from ₹3.6 Cr.
• Other expenses: Professional fees, travel, maintenance, rent and other overheads stayed nearly flat at ₹29.2 Cr.

The cost base grew faster than revenue, but profit still expanded, meaning margins held on the strength of the service business. The ₹11.1 Cr impairment charge is the clearest wrinkle in an otherwise clean set of numbers, and investors will likely press for detail when the updated DRHP goes public. With SEBI's approval in hand and a fresh issue of up to ₹750 Cr on the table, Garuda now needs to file that document to set its listing timeline.