Garuda Aerospace, an Indian drone manufacturer gearing up for a public listing, reported a 41.1% increase in net profit to ₹25.9 crore for fiscal year 2026, driven by robust revenue growth and strategic expansions in manufacturing and services.
- Net profit rises to ₹25.9 Cr, a 41% YoY increase
- Revenue climbs 67% to ₹206 Cr, driven by sales and services
- IPO plans include ₹750 Cr fresh issue and ₹250 Cr share sale
What happened
Garuda Aerospace, headquartered in Chennai, reported a net profit of ₹25.9 crore for the fiscal year 2026, marking a 41.1% increase from ₹18.4 crore the previous year. The drone company’s operating revenue rose sharply by 66.8% to ₹206 crore, fueled by ₹99.4 crore from drone and drone parts sales and ₹106.5 crore from service sales including Drone-as-a-Service operations. The firm also earned ₹15 lakh from delivery charges and ₹26.5 lakh from other income, boosting total income to ₹206.2 crore.
The company’s operational earnings before interest, taxes, and amortization (EBITA) increased by 31.8% to ₹35.1 crore. Garuda expanded its manufacturing capabilities and ventured deeper into indigenous research and development. It also enhanced its portfolio by advancing artificial intelligence, autonomous flight, data analytics, defense system integration, and specialized mission platforms, positioning itself as a leader in India’s drone market.
Why it matters
Garuda Aerospace’s significant profit and revenue growth underline its strong market position as India’s largest drone manufacturer, having sold over 3,000 drones and forming partnerships with three defense Public Sector Undertakings (PSUs). This financial performance comes at a critical moment as the startup prepares for its upcoming initial public offering (IPO), which was pre-filed confidentially with the Securities and Exchange Board of India (SEBI) in April and approved in August.
The upcoming IPO aims to raise up to ₹750 crore through a fresh share issuance, while investors potentially offload ₹250 crore in shares via an offer for sale (OFS). Additionally, a private placement of ₹57.2 crore was approved by the board in August, funded by prominent backers including Venture Catalysts and other investment entities. These funds are earmarked to support business growth, working capital, and debt repayments, setting a strong foundation for Garuda’s expansion ambitions.
What to watch next
Market participants will closely monitor when Garuda Aerospace formally files its updated draft red herring prospectus (DRHP) for public access, offering greater transparency on valuation, share sale details, and strategic outlook. The startup’s ability to leverage fresh capital for scaling its Drone-as-a-Service model and expanding its technological edge in AI and autonomous drone capabilities will be key to sustaining growth momentum.
Investors will also watch for the impact of Garuda’s partnerships with defense PSUs and international collaborations, as well as its approach to managing rising operational expenses, including raw materials and asset impairments. How the company balances investment in innovation with profitability and shareholder value will be critical as it enters a more public and competitive phase in the Indian drone technology landscape.