Chennai-based drone technology startup Garuda Aerospace reported a 41.1% year-on-year increase in net profit to ₹25.9 crore in FY26, compared with ₹18.4 crore in the previous financial year, according to a media report.
The company’s operating revenue grew 66.8% to ₹206 crore in FY26 from ₹123.5 crore in FY25. Meanwhile, earnings before interest, taxes, and amortisation (EBITA) increased 31.8% to ₹35.1 crore from ₹26.6 crore during the same period.
Sales of drones and drone components contributed ₹99.4 crore to operating revenue, while services generated ₹106.5 crore. Additionally, the company earned ₹15 lakh through delivery charges. Including other income of ₹26.5 lakh, Garuda Aerospace’s total income reached ₹206.2 crore for the financial year.
However, the company’s total expenses rose 73.2% year-on-year to ₹172.2 crore in FY26 from ₹99.4 crore in FY25. It incurred tax expenses of ₹8.2 crore and reported no exceptional items during the year.
Raw material consumption remained its largest operating expense, increasing 61.5% to ₹116.8 crore from ₹72.3 crore in FY25. Furthermore, impairment losses on financial assets surged to ₹11.1 crore from just ₹6.5 lakh in the previous financial year.
In contrast, employee benefit expenses declined 16.7% to ₹8 crore from ₹9.6 crore. Depreciation and amortisation expenses increased 13.3% to ₹4.1 crore, while other expenses, including professional fees, travel, maintenance, and rent, remained almost unchanged at ₹29.2 crore.
In a message to shareholders, co-founder and whole-time director Agnishwar Jayaprakash said the company continued to expand its manufacturing capabilities, Drone-as-a-Service operations, indigenous research and development, and strategic partnerships across domestic and international markets in FY26. He also highlighted progress in artificial intelligence, autonomous flight, data analytics, and defence systems.
The financial results come as Garuda Aerospace advances plans for a proposed initial public offering (IPO). The company confidentially filed its draft IPO papers with the Securities and Exchange Board of India (SEBI) in April 2026 and received regulatory approval in August.
In March, the company’s board approved a plan to raise up to ₹750 crore through a fresh issue of shares. The proposed offer-for-sale component could allow existing investors to sell shares worth up to ₹250 crore, according to reports. However, the company has not yet made its updated draft red herring prospectus publicly available.
Separately, Garuda Aerospace disclosed in its FY26 annual report that its board approved a private placement of equity shares worth ₹57.2 crore in August. The investors included Umasankar Nistala, Rakesh Pillai, Jitendra Rana, Vimaan Innovators LLP, and Aditum Management. The company intends to use the proceeds to support business expansion, meet working capital requirements and repay loans.
Garuda Aerospace says it has manufactured and sold more than 3,000 drones and established partnerships with three defence public sector undertakings. To date, the company has raised more than $37 million from investors, including Venture Catalysts, We Founder Circle, and former Indian cricketer Mahendra Singh Dhoni.
The company was last valued at $250 million following an $11 million Series B funding round led by Venture Catalysts.
