ideaForge Technology Ltd. Soars 10% After Securing ₹137 Crore Defence Order

Market Performance

On Monday, June 23, IdeaForge Technology Ltd. witnessed a sharp 10% surge in its stock price, reaching ₹631.05 per share by noon. This sharp rise comes as a reaction to a significant order win from the Ministry of Defence.

• Stock Price (noon): ₹631.05
• Intraday Gain: +10%
• Monthly Performance: +20%
• IPO Price: ₹672
• March 2025 Low: ₹324

The current rally brings the stock closer to its IPO price of ₹672, a level it last approached in October 2024.

Main News: ₹137 Crore UAV Order Boosts Investor Sentiment

ideaForge Technology Ltd. has bagged a ₹137 Crore contract to supply mini uncrewed aerial vehicles (UAVs) along with accessories to the Ministry of Defence. This order is scheduled to be executed over the next 12 months.

The strategic order not only enhances ideaForge's visibility in the defense sector but also strengthens its position in the fast-growing UAV market.

Meanwhile, peers in the defence-tech space also showed strong performance:

• Apollo Micro Systems Ltd.: Up 10% at ₹214
• Zen Technologies Ltd.: Up 5% at ₹1,994.6

Zen Technologies' rise is attributed to its entry into the UAV segment through the acquisition of TISA Aerospace.

Company Financials: A Closer Look at ideaForge Technology Ltd.

Despite recent market optimism, IdeaForge's financial performance in the past quarters has reflected significant challenges.

Revenue

• Q4 FY25: ₹20 Crore
• Q4 FY24: ₹102 Crore
• YoY Decline: 80%
• FY25 Revenue Decline: 48.6%

EBITDA

• Q4 FY25 Loss: ₹17 crore
• Q4 FY24 Profit: ₹20 crore

EBITDA Margins

• FY25: -19.6%
• FY24: 27.4%

Net Profits

• Q4 FY25 Net Loss: ₹26 crore
• Q4 FY24 Net Profit: ₹10 crore

PAT Margins

• FY25: -38.6%
• FY24: 14.4%

Gross Margins

• FY25: 33%
• FY24: 49.9%

These numbers highlight a sharp contraction in both top-line and bottom-line figures. The company has faced mounting pressure on profitability and margins throughout fiscal year 2025.

Company Overview

ideaForge Technology Ltd. is a leading player in India's UAV ecosystem, specializing in drone manufacturing and aerospace technology. With its latest defense order, the company aims to cement its foothold in a high-growth sector backed by government contracts and strategic defense requirements.

This ₹137 Crore order is a timely boost for the company amid a period of financial downturn and market volatility.

Summary

The recent 10% spike in ideaForge Technology Ltd. shares follows the announcement of a major ₹137 Crore UAV supply deal with the Ministry of Defence. While the stock is inching closer to its IPO price after eight months, the company continues to face financial headwinds, including significant declines in revenue, EBITDA, and profit margins for fiscal year 2025.