Garuda Aerospace Reports 67% Revenue Growth in FY26 with Upcoming Rs 1,000 Crore IPO

Garuda Aerospace, a pioneering drone technology startup, has achieved an impressive 67% revenue growth year-on-year in FY26 while continuing to remain profitable. The Chennai-based company recorded a net profit of Rs 26 crore as it gears up for its public debut, having recently secured the necessary approval from SEBI for its ₹1,000 crore IPO.

The revenue from operations for Garuda surged to Rs 206 crore for the fiscal year ending March 2026, a significant increase from Rs 123.5 crore in FY25, as detailed in its financial statements submitted to the Registrar of Companies (RoC).

Overview of Garuda Aerospace’s Offerings

Garuda Aerospace focuses on designing and manufacturing drones for diverse applications, including agriculture, defence, infrastructure, mining, and disaster management. In addition to drone production, the company provides Drone-as-a-Service (DaaS) and runs a DGCA-approved remote pilot training programme.

Revenue Breakdown in FY26

In FY26, revenue derived from services jumped 84.1% to Rs 106.46 crore from Rs 57.83 crore in FY25. Concurrently, product sales also reflected growth, increasing by 66.2% to Rs 99.50 crore, up from Rs 59.85 crore during the same timeframe.

Expense Analysis for FY26

On the expenditure side, the cost of materials, the largest expense category, rose by 62% to Rs 117 crore in FY26, compared to Rs 72.21 crore in FY25. Employee benefit expenses, however, saw a decline of 16.2%, dropping to Rs 8 crore from Rs 9.55 crore. Legal and professional charges experienced a notable increase of 94.6%, rising to Rs 12.88 crore from Rs 6.62 crore. Additional overhead costs, including impairment losses on financial assets, depreciation & amortization, and travel expenses, contributed an extra Rs 34.12 crore to the overall costs.

Overall, Garuda’s total expenses rose by 73.7%, reaching Rs 172 crore in the last fiscal year compared to Rs 99 crore in FY25.

Profit Margins and Financial Insights

Despite escalating costs, the company managed to report a net profit growth of 41.5%, which stood at Rs 26 crore in FY26, up from Rs 18.37 crore in FY25. The return on capital employed (ROCE) was recorded at 14.71%, with an EBITDA margin of 18.97%.

On a unit basis, Garuda spent Rs 0.83 to generate every rupee of operating revenue in FY26, up from Rs 0.80 in FY25. By the end of March 2026, the company’s total current assets had risen to Rs 303 crore from Rs 176 crore, while the cash and bank balance was reported at Rs 5.2 crore.

Upcoming IPO Plans

Garuda Aerospace pre-filed its draft red herring prospectus (DRHP) with SEBI via the confidential route in April. The proposed ₹1,000 crore IPO includes a fresh issue of shares valued at Rs 750 crore and an offer for sale (OFS) amounting to Rs 250 crore from existing shareholders.