Ideaforge Technology Limited — Q3 FY26 earnings call

Call held 23 Jan 2026

Management summary

Ideaforge Tech reported a muted Q3 FY26 in terms of numbers, but saw significant order inflows, achieving a record ~INR440 crores year-to-date. The current order book of ~INR368 crores provides strong revenue visibility, with management confident of executing 40-45% in Q4 FY26 and achieving profitability. The company is strategically focused on defence, EW resilience, and indigenous capability building, while also expanding its civil and enterprise market presence.

Highlights

  • Record order inflow of ~INR440 crores year-to-date FY26, highest in 2-decade journey.

  • Q3 FY26 order inflow of ~INR217 crores (INR102cr large + INR115cr smaller) showing broad-based demand.

  • Current order book stands at ~INR368 crores, providing robust revenue visibility.

  • Expects to deliver 40-45% of the open order book in Q4 FY26, leading to profitability.

  • Gross margin trajectory of 50%+ for full year FY26.

  • Secured capital emergency procurement orders from Indian Army worth >INR100 crores for ZOLT and SWITCH UAVs.

Concerns

  • Q3 FY26 numbers were muted.

  • Supply chain constraints emerging with increasing volumes.

  • Business remains lumpy due to dependency on large orders.

Key financials

3 periods

Headline

  • Order Inflow YTD
    ₹440 Cr
  • Order Inflow Q3
    ₹217 Cr
  • Order Book (current)
    ₹368 Cr

Q3 end

  • Order Book
    ₹350 Cr

FY26

  • Gross Margin
    50%

What they filed

Q1 FY27: revenue up 436.7%, net profit up 89.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue37 18 20 13 41 +10%32 +79%141 +594%69 +437%
EBITDA-16 -17 -22 -19 -11 +29%-27 −52%62 +382%2 +112%
Net profit-14 -24 -26 -24 -20 −43%-34 −41%60 +333%-3 +89%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹368 Cr

as of 2026-01-31 quantified

Inflow this quarter

₹217 Cr

Execution

40-45% of open order book in Q4 FY26

Composition

  • Indian Army (emergency procurement) (client type) ₹100 Cr
The impending demand has fructified into orders, with a record INR440 crores order booking year-to-date and a current open order book of INR368 crores, providing clear revenue visibility.

Source: Prepared remarks

Capital allocation

medium confidence
  • Liquidity Liquidity disclosed Sufficient cash and funding capability to support working capital for deliveries.
    With sufficient cash and funding capability to support working capital for deliveries, so execution is not constrained by liquidity.

Guidance & targets

Profitability

  • Q4 FY26 Profitability Profitability · Q4 FY26 · High confidence turning profitable
    And thus, with both the quantity of billing and better gross margins, we are confident of turning profitable.

    — Ankit Mehta

Margin

  • FY26 Gross Margin Margin · FY26 · High confidence 50%+
    We are confident in the full year's gross margin trajectory of 50% plus for FY '26, supported by our order mix and execution of higher-value programs in Q4.

    — Ankit Mehta

Revenue Recognition

  • Q4 FY26 Revenue Recognition from Order Book Revenue Recognition · Q4 FY26 · High confidence 40% to 45%
    However, our readiness makes us confident of delivering around 40% to 45% of the open order book in the present quarter and recognizing the revenue.

    — Ankit Mehta

What to watch in Q4 FY26

Q4 FY26 Revenue Recognition

Q4 FY26
Current Q3 FY26 muted numbers
Target 40-45% of ~INR368 crores order book

Why it matters

This is a key short-term execution target and will determine the company's Q4 performance and profitability.

our readiness makes us confident of delivering around 40% to 45% of the open order book in the present quarter and recognizing the revenue.

Risks & concerns

  • Supply chain constraints

    medium

    Emerging as volumes increase, directly linked to delivery of systems, requiring continuous adaptation.

    However, our readiness makes us confident of delivering around 40% to 45% of the open order book in the present quarter and recognizing the revenue. We would also like to mention here that due to shifting geopolitical conditions and the aggressive nature of the global posture, we are observing certain supply side constraints, and we are working closely with our supply chain partners to navigate the dynamic challenges.

    Management acknowledged

  • Lumpiness of business due to large orders

    medium

    Strong dependency on orders executed in specific quarters makes numbers difficult to track Q-o-Q, though baseline business is improving.

    As you are aware, our gross margins and overall numbers are not easily tracked quarter-on-quarter or year-on-year for the quarter due to strong dependency on the orders executed in that specific quarter and the vagaries of that are visible in our Q3 numbers as well. However, those very large opportunities will continue to make it look lumpy when they come. And therefore, that is a reality that we'll have to live with, but the baseline is definitely improving, and we will see a better baseline business over the next couple of years for sure.

    Management acknowledged

Q&A highlights

5 direct
Partner-led contracts and working capital management Direct
Typically, if you have followed our trajectory in the last three years since listing, we have enumerated that our overall base and approach of approaching to our customers in multifold, one where in large tenders or otherwise the direct participation of ideaForge as well as we have now a large partner base across the country where -- who will help us in penetration to different opportunities as well as give us support and help in our L1 and L2 support and delivering the training programs to the end customers as and where is required.

Clarifies the role of partners in securing and executing contracts, and how working capital is managed, indicating a diversified approach to market penetration.

Asked by Jai Chauhan

Defence procurement process and L1 bidder criteria Direct
So in a typical tender scenario, there are multiple stages. One, starting when the tender submission RFP is out, there is a paper evaluation on which is there for all the technical specifications that have been submitted. Post that qualification criteria is when vendors are invited for field trials. In the field evaluation trials is when people are asked to showcase their products line item by line item as to what the RFP details are. And anybody who is not able to qualify in those field trials is basically not part of the financial bid opening. And L1 bidder is the last person who receives the order.

Provides insight into the multi-stage defence procurement process, emphasizing that being the L1 bidder is generally crucial even after technical evaluations.

Asked by Jai Chauhan

Outlook for large order inflows in Q4 FY26 Partial
Yes, nothing large, Hardik, particularly from an EP standpoint, remains open at this point in time. We are continuing to track meaningful opportunities in the run rate business, and we are expecting closures from that.

Indicates that while smaller, run-rate orders are expected, no major large emergency procurement orders are anticipated in Q4 FY26, managing short-term expectations.

Asked by Hardik Rawat

Progress on international business pipeline Direct
So it is still a work in progress, Hardik. In fact, the number of opportunities that we have bid in international business has grown only. We have had a bunch of customer visits at our place as well over the last few months, where we are seeing definite interest in trying to close things. However, the final conversion is what we are awaiting right now, but it's very positive in terms of motion and movement.

Provides an update on the progress of international orders, indicating continued engagement and positive momentum despite awaiting final conversions, suggesting future growth avenues.

Asked by Hardik Rawat

Potential for ZOLT drone with loitering munition capabilities Direct
ZOLT for certain MAKE - II opportunities. So that's the, I would say, the opportunity pipeline for that, that it was being worked towards. And that's what happens like when you are building something forward-looking and you are building it because you see the demand signals. Typically, that's how you embark on a program when you see the demand signals, and you believe that you have the capability to deliver on it.

Explains the strategic development of ZOLT for specific MAKE-II opportunities and its role in expanding the total addressable market through proactive capability building.

Asked by Tushar

Strategy for nano drones and Vantage Robotics investment Direct
So Nikhil, it's a very interesting question. There are three, four things that are happening globally in so far as small drones are concerned. One is that there are very, very tiny drones that are required for -- in many cases, for room interventions... Then the second class of drones that was very popular as a hobby was FPV drones, which are smaller drones that people carry in their backpack, but now they are being loaded with munition, and they are acting as attack agents... A particular type of system is what our present partner builds, but there are several other types of systems that are a requirement or in demand.

Provides a detailed overview of the global nano drone market, different use cases, and how the company's investment in Vantage Robotics fits into its broader strategy for diverse drone applications.

Asked by Nikhil Gupta

Sustainability of 50%+ gross margin in FY27 Partial
I mean, as of now, the order book that we have, that definitely gives us confidence. However, as more orders add in, we will be able to probably respond to that a bit more progressively.

Addresses investor concern about long-term margin sustainability, linking it to the growing order book and execution capabilities, suggesting confidence in maintaining healthy margins.

Asked by Mithun Aswath

3 min read 7 chapters

Detailed narrative

Order Book Growth and Revenue Visibility

ideaForge achieved its highest annual order inflow in FY26, adding approximately INR440 crores year-to-date. In Q3 FY26 alone, new orders totaled around INR217 crores, comprising over INR102 crores from large opportunities and roughly INR115 crores from multiple smaller orders. The company's order book stood at approximately INR350 crores at the end of Q3, further increasing to INR368 crores in the current month, providing robust revenue visibility. Management is confident in delivering 40-45% of this open order book in Q4 FY26.

Strategic Focus on Defence and EW Resilience

The company secured capital emergency procurement orders from the Indian Army exceeding INR100 crores for its tactical ZOLT UAV and mini UAV SWITCH. These wins highlight the increasing demand for electronic warfare (EW) resilience, which has become a baseline requirement in procurement decisions. ideaForge's platforms, equipped with EW resilience capabilities for high-threat signal-denied operations, are positioned to meet evolving defence requirements, including strong ECCM and GNSS-denied autonomy.

Indigenous Capability Building and Market Tailwinds

Global conflicts have underscored the need for indigenous defence capabilities, with India accelerating procurement of new technologies. Recent reports of a fresh procurement outlay of approximately INR20,000 crores across ISR platforms, loitering munitions, and strike drones are expected to provide a multiyear demand tailwind for the domestic drone industry. The company's ZOLT and SWITCH UAVs will be showcased at the Republic Day Parade, symbolizing India's growing indigenous defence capability.

Evolving Civil and Enterprise Market Strategy

In the civil and enterprise markets, customers are increasingly seeking comprehensive outcomes rather than just hardware. ideaForge's software platforms, such as FLYGHT CLOUD, are becoming crucial, acting as a stabilizer alongside defence revenues and enabling more repeatable deployments. The company noted that many of its surveillance-based services in mining and other enterprises are already revenue-generating, with even some Proof-of-Concepts (POCs) being paid.

Product Development and Technology Edge

ideaForge continues to leverage its extensive operational experience, with deployed UAVs completing over 150,000 flights by December 2025 and over 850,000 cumulatively. This real-world data informs product and software improvements, enhancing reliability and customer trust. The company holds a strong patent portfolio of over 100 patents, reflecting its continuous innovation and ability to convert learnings into technological advantages.

Supply Chain Management and Business Lumpiness

While the company is experiencing significant order inflows, it acknowledges that Q3 FY26 numbers were muted. Management noted emerging supply chain constraints as volumes increase, which they are actively navigating. The business remains inherently lumpy due to its strong dependency on large orders, making quarter-on-quarter tracking challenging. However, the company expects the baseline business to improve over the next few years, driven by increasing adoption of technology in enterprises.

International Expansion and US Joint Venture

ideaForge's international business pipeline is growing, with customer visits indicating definite interest, though final conversions are still pending. The company's joint venture with First Breach in the United States, currently in its formation and execution phase, is a deliberate move to establish a credible on-ground operating footprint and reduce supply chain risks, enhancing its ability to compete effectively in government and enterprise programs in the US.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls