Garuda Aerospace reports 67% revenue growth to ₹206 crore in FY26, secures SEBI nod for ₹1,000 crore IPO

Financial performance in FY26

Garuda Aerospace, a drone technology startup based in Chennai, reported a 67% year-on-year increase in revenue for FY26, reaching ₹206 crore. This follows a revenue of ₹123.5 crore in FY25, according to filings with the Registrar of Companies.

The company’s net profit rose 42% to ₹26 crore in FY26, up from ₹18.37 crore in the previous fiscal year. Revenue from services surged 84.1% to ₹106.46 crore, while product sales grew 66.2% to ₹99.50 crore.

Despite the strong revenue growth, total expenses increased 73.7% to ₹172 crore, driven primarily by a 62% rise in the cost of materials, which reached ₹117 crore. Employee benefit expenses, however, declined 16.2% to ₹8 crore, while legal and professional charges surged 94.6% to ₹12.88 crore.

Profitability and efficiency metrics

Garuda Aerospace’s return on capital employed (ROCE) stood at 14.71% in FY26, reflecting improved operational efficiency. The company’s EBITDA margin was 18.97%, indicating a healthy balance between revenue growth and cost management.

The company spent ₹0.83 to generate every rupee of operating revenue, a metric that underscores its efforts to optimise costs amid rapid scaling. Total current assets rose to ₹303 crore by the end of March 2026, though cash and bank balances remained modest at ₹5.2 crore.

SEBI approval for ₹1,000 crore IPO

Garuda Aerospace received approval from SEBI for its ₹1,000 crore IPO, which includes a fresh issue of shares worth ₹750 crore and an offer for sale (OFS) of ₹250 crore. The company pre-filed its draft red herring prospectus (DRHP) with SEBI in April through the confidential route.

The IPO approval marks a critical step for the company as it prepares to expand its operations in drone manufacturing, drone-as-a-service (DaaS), and remote pilot training programmes. Garuda Aerospace serves sectors such as agriculture, defence, infrastructure, mining, and disaster management.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Garuda Aerospace’s financial performance in FY26 signals robust growth in India’s drone technology sector, particularly in services and product sales. The 67% revenue growth and 42% rise in net profit demonstrate the company’s ability to scale while maintaining profitability, a rare feat for high-growth startups in hardware-intensive industries. The SEBI approval for its ₹1,000 crore IPO further validates its market position and could set a precedent for other drone startups seeking public listings.

For founders and operators in the drone and aerospace sectors, Garuda’s trajectory offers a case study in balancing aggressive expansion with cost control. The company’s focus on diversifying revenue streams—through both product sales and services—highlights a potential blueprint for scaling hardware businesses in India. The IPO also underscores the growing investor appetite for tech-driven manufacturing startups, particularly those with applications in critical sectors like defence and agriculture.

Key takeaways

• Garuda Aerospace’s 67% revenue growth and 42% rise in net profit highlight the scalability of drone technology businesses in India.
• The SEBI-approved ₹1,000 crore IPO signals increasing investor confidence in hardware-focused startups, particularly in sectors like defence and agriculture.
• The company’s dual revenue model—product sales and services—demonstrates a viable path for hardware startups to achieve profitability while scaling.
• Founders in drone and aerospace sectors can learn from Garuda’s cost optimisation efforts, including a 16.2% reduction in employee benefit expenses despite overall expense growth.

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