Ideaforge Technology Q2 FY27 results: net profit ₹6.46 crore vs ₹43.18 crore loss, revenue up 70.5%

How did Ideaforge Technology perform in Q2 FY27?

Ideaforge Technology's consolidated revenue for Q2 FY27 was ₹91.29 crore, up 70.5% from ₹53.54 crore in Q2 FY26 and 33.1% from ₹68.59 crore in Q1 FY27. Total income was ₹97.56 crore, against ₹60.77 crore a year earlier and ₹70.54 crore in the previous quarter.

EBITDA was ₹16.96 crore at an 18.6% margin, compared with a loss of ₹30.36 crore and a margin of -56.7% in Q2 FY26 and EBITDA of ₹2.33 crore at a 3.4% margin in Q1 FY27. Profit before tax was ₹7.44 crore after tax of ₹0.98 crore, giving a net profit of ₹6.46 crore against a net loss of ₹43.18 crore a year earlier and a net loss of ₹2.59 crore in the previous quarter.

Basic EPS for the quarter was ₹1.3, against ₹-9.9 in Q2 FY26 and ₹-0.59 in Q1 FY27. On a standalone basis, revenue was ₹91.28 crore and profit after tax was ₹7.75 crore, against a standalone profit before tax of ₹-36.84 crore in the year-ago quarter.

What changed in Ideaforge Technology's costs and profit?

Total expenses fell by ₹15.41 crore, or 14.6%, to ₹90.12 crore from ₹105.53 crore in Q2 FY26. Employee cost declined 39.9% by ₹10.99 crore to ₹16.58 crore, other expenses fell 48.4% by ₹15.04 crore to ₹16.03 crore, and depreciation dropped 27.5% by ₹5.59 crore to ₹14.75 crore.

Cost of materials rose 49.8%, or ₹16 crore, to ₹48.12 crore, while finance costs fell 19.4% by ₹0.25 crore to ₹1.04 crore. Other income fell 13.3% by ₹0.96 crore to ₹6.27 crore, and tax moved from ₹1.58 crore to ₹0.98 crore.

There was no exceptional item in the quarter. On the profit lines, EBITDA improved by ₹47.32 crore, profit before tax by ₹52.20 crore, and net profit by ₹49.64 crore against the year-ago quarter. The filings do not state why the cost lines moved in the way they did.

What do the balance sheet and cash flow show?

Total assets stood at ₹1189.74 crore on 30 September 2026, against ₹798.72 crore on 31 March 2026. Total equity was ₹1095.13 crore against ₹599.04 crore, and there were no borrowings against ₹72.13 crore at the earlier balance sheet date. Cash and cash equivalents were ₹86.65 crore against ₹32.95 crore.

Inventories rose to ₹155.00 crore from ₹143.11 crore, trade receivables to ₹161.05 crore from ₹126.22 crore, and trade payables fell to ₹24.96 crore from ₹40.78 crore. In the first half of FY27, operating cash flow was an outflow of ₹78.04 crore, against an outflow of ₹30.28 crore in H1 FY26.

Investing cash flow for the first half was an outflow of ₹278.31 crore, against an inflow of ₹21.14 crore a year earlier, while financing cash flow was an inflow of ₹409.51 crore against ₹25.09 crore. Capital expenditure in the first half was ₹49.75 crore, compared with ₹40.38 crore in H1 FY26.

How has Ideaforge Technology done over the last 8 quarters?

Revenue has risen year on year in each of the last five quarters. It bottomed at ₹12.78 crore in Q1 FY26 and peaked at ₹141.04 crore in Q4 FY26. In the latest quarter, revenue of ₹91.29 crore was higher than the ₹68.59 crore of Q1 FY27 but lower than the Q4 FY26 peak.

Net profit bottomed at a loss of ₹43.18 crore in Q2 FY26 and peaked at ₹59.99 crore in Q4 FY26. Profit then moved to a loss of ₹2.59 crore in Q1 FY27 before returning to a net profit of ₹6.46 crore in Q2 FY27. EBITDA margin followed the same path, moving from -56.7% to 43.8%, then to 3.4% and now 18.6%.

What else did the company announce?

The board met on 2 November 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review report issued by B S R & Co. LLP. The meeting began at 05:15 p.m. and concluded at 07:00 p.m.

What did Ideaforge Technology's management say?

Management said the carried-forward prior-year order book was expected to conclude in Q3 FY27, with some current-year deliveries potentially spilling into Q4 FY27. The company expects more order conversion in Q3 and Q4 FY27 but gave no quantified fresh-order inflow target, and no FY27 revenue, margin or order-inflow target. Roughly ₹80-90 crore is invested annually in product development.

Co-founder and CEO Anik Mehta said, “One of the defining characteristics of our business is that technology and product development often precede market demand by several years.” He also said the focus is on maturing systems for customer field trials in H2 FY27, including participation in emerging fast-track procurement opportunities.

CFO Vipul Joshi said, “RDI funding basically is a matching principal grant that we have received, where we also will have to equally put the similar amount of funds.” Management said the ₹151 cr RDI debt at ~4% for ~10 years requires equal Ideaforge funding and milestone drawdowns. Zolt Hybrid was field-tested to 100 km and 6+ hours, and the combat-capable Zolt UCAV was launched in October.

Management identified risks including global supply-chain constraints, customer-approval delays, procurement approvals and award timing outside its control, the lengthy Blue UAS certification process for US expansion, and the need for engineering development and customer validation of new combat and Yeti systems. Two to three fast-track procurement RFPs were already live, with a few more expected in the coming quarter.

How did Ideaforge Technology shares react?

The filing appeared after market hours. From the price when the filing appeared, the stock fell 2.9% after five minutes, 3.1% after 15 minutes and 2.9% after 30 minutes. On the reaction day, the stock was up 3.2% from the previous close of ₹639.0, and by the next day's close it was up 11.1% from that pre-results close. No industry median or Nifty Microcap 250 comparison figures were given.

Earlier results-day moves were mixed: the stock rose 19.0% on 30 April 2026 and 2.7% on 7 July 2026, fell 7.0% on 22 January 2026 and 7.6% on 22 July 2025, rose 21.4% on 8 May 2025, and fell 4.5% on 28 January 2025 and 11.1% on 28 October 2024.