ideaForge Technology Ltd [NSE: IDEAFORGE] reported a net loss of ₹235.6 crore in the first quarter of FY26, compared to a profit of ₹11.74 crore in the same quarter last year. The performance reflects a sharp drop in revenue as well as elevated operational expenses.
This marks the second consecutive quarterly loss for the drone manufacturer, as it continues to face a slowdown in order inflows post its strong FY25 finish.
Key Financial Highlights for Q1 FY26
- Net Loss: ₹235.6 crore, compared to a profit of ₹11.74 crore in Q1 FY25
- Revenue from Operations: ₹127.8 crore, down 85.2% YoY from ₹861.9 crore
- Total Income: ₹167.18 crore, compared to ₹921.9 crore in Q1 FY25
- Total Expenses: ₹420.09 crore, down from ₹906.21 crore YoY
Revenue Drop and Expense Pressure
Revenue from operations fell sharply to ₹127.8 crore in Q1 FY26 from ₹861.9 crore in Q1 FY25, representing a decline of over 85%. The drop reflects a slowdown in government orders and a leaner order book compared to the same period last year.
On a sequential basis, revenue also fell from ₹203.1 crore in Q4 FY25, further highlighting the pressure on topline growth.
While the company made efforts to reduce overall costs from ₹906.21 crore last year to ₹420.09 crore this quarter, high employee costs (₹124.9 crore), depreciation expenses (₹97.82 crore), and other overheads (₹144.78 crore) continue to weigh on profitability.
Profitability Impacted by Operating and Depreciation Expenses
ideaForge’s Q1 FY26 results show a net loss of ₹235.6 crore, as the company could not absorb its cost base amid falling revenue. The deferred tax credit of ₹17.35 crore helped narrow the net loss marginally.
Compared to the previous quarter (Q4 FY25), which reported a loss of ₹257.1 crore, the Q1 FY26 loss remains elevated, indicating continued financial pressure.
Other Income and Tax Impact
The company reported other income of ₹39.38 crore in Q1 FY26, down from ₹59.98 crore a year ago. Tax adjustments helped cushion the loss to some extent, with a deferred tax credit of ₹17.35 crore recorded this quarter.
Conclusion
ideaForge Technology’s Q1 FY26 results reflect a challenging quarter marked by revenue contraction and continued cost burden. The company’s focus on maintaining its R&D and employee base has led to sustained expenses despite reduced sales activity.
With a volatile order pipeline and operating leverage working against profitability in the short term, ideaForge will need to focus on rebuilding momentum in revenue and improving cost efficiency to steer towards profitability in the coming quarters.
Investors will be keenly watching for a revival in demand and order wins that can help reverse the current financial trend.
