Garuda Aerospace Reports ₹206 Crore FY26 Revenue Ahead of a ₹1,000 Crore IPO, With Impairments Up 170-Fold

Garuda Aerospace reported FY26 revenue from operations of ₹206 crore, up about 67% from ₹123.5 crore, and a net profit of ₹25.9 crore, up about 41% from ₹18.4 crore, according to Inc42. The Chennai drone maker is preparing a ₹1,000 crore IPO.

Entrackr, which also reported the results, rounds the profit to ₹26 crore and the year to March 2026. The two outlets agree on revenue and differ by rounding elsewhere. They do not agree on margin: Entrackr gives an EBITDA margin of 18.97%, while Inc42's EBITA of ₹35.1 crore works out to about 17% of revenue.

Where the revenue comes from

Services brought in ₹106.46 crore, up 84.1% from ₹57.83 crore, and products ₹99.50 crore, up 66.2% from ₹59.85 crore, per Entrackr. The company sells drones for agriculture, defence, infrastructure, mining and disaster management, runs Drone-as-a-Service (DaaS) and trains remote pilots under a DGCA-approved programme.

Services outgrew product sales, which matters for the IPO story: recurring service revenue is valued differently from one-off hardware sales. Co-founder Agnishwar Jayaprakash said the company continued to expand its DaaS operations during the year, in a statement Inc42 quoted. Neither outlet gives a drone unit count for FY26. The company says it has made and sold over 3,000 drones to date, a cumulative claim that cannot be divided into FY26 revenue.

FY26 line	Amount	FY25
Revenue from operations	₹206 crore	₹123.5 crore
Services revenue	₹106.46 crore	₹57.83 crore
Products revenue	₹99.50 crore	₹59.85 crore
Net profit	₹25.9 crore	₹18.4 crore

Costs rose faster than sales

Total expenses grew 73.2% to ₹172.2 crore from ₹99.4 crore, faster than revenue's 66.8%. Raw material cost was the largest line at ₹116.8 crore, up 61.5%. Employee costs fell to ₹8 crore from ₹9.6 crore.

The line a prospectus reader will look for is impairment. Inc42 reports impairment losses of ₹11.1 crore, against ₹6.5 lakh a year earlier. That is roughly 170 times the prior-year figure and about 43% of the year's net profit. Neither source says what was impaired. Entrackr also lists legal and professional charges of ₹12.88 crore, up 94.6%, which fits a company preparing to list.

Balance-sheet figures from Entrackr add one more question. Current assets rose to ₹303 crore from ₹176 crore, while cash and bank balances were ₹5.2 crore at the end of March. The sources do not break down what the other ₹298 crore or so consists of, and no cash flow statement is given.

The IPO and the valuation

Garuda confidentially filed draft papers with SEBI in April, and SEBI approved the IPO in August, Inc42 reports. The board approved a fresh issue of up to ₹750 crore in March, with an offer for sale of up to ₹250 crore. The updated draft red herring prospectus (DRHP) is not yet public, so the audited numbers above are not yet checkable against a filing.

In August the board also approved a private placement of equity worth ₹57.2 crore, with investors including Umasankar Nistala, Rakesh Pillai, Jitendra Rana, Vimaan Innovators LLP and Aditum Management. Proceeds are earmarked for growth, working capital and loan repayment, which includes debt. Total funding is over $37 million, from backers including Venture Catalysts and We Founder Circle, and the last valuation was $250 million after an $11 million Series B led by Venture Catalysts.

A ₹1,000 crore raise is large next to a ₹25.9 crore profit, and the same-day Tonbo Imaging listing, an offer for sale with no fresh issue, is the opposite structure to Garuda's ₹750 crore fresh issue.

For other Indian startups pricing against public comparables, see Swiggy's Q2 margin results and Warp Sciences' round. The date to watch is the public DRHP, which will show the impairment note, the receivables and the price band.