Garuda Aerospace’s Revenue Jumped 67%. Its Costs Rose Even Faster

Garuda Aerospace is entering its IPO phase with significantly more revenue and profit — but also a much larger cost base. The Chennai-based drone company reported a net profit of ₹25.9 crore in FY26, up 41.1% from ₹18.4 crore a year earlier.

Operating revenue climbed 66.8% year-on-year to ₹206 crore, from ₹123.5 crore in FY25. What stands out is how evenly that business is now split. Drone and drone-parts sales contributed ₹99.4 crore, while services generated ₹106.5 crore, showing that Garuda’s Drone- as-a-Service operations are now as important to the topline as manufacturing itself.

The growth, however, came with heavier spending. Total expenses rose 73.2% to ₹172.2 crore, outpacing revenue growth. Raw-material costs were the largest component at ₹116.8 crore, up 61.5%, while impairment losses on financial assets jumped to ₹11.1 crore from just ₹6.5 lakh in the previous year. Employee-benefit expenses, meanwhile, declined to ₹8 crore.

Garuda says it continued expanding manufacturing capacity, Drone-as-a-Service operations, indigenous R&D and international partnerships during the year, while also investing in autonomous flight, AI, data analytics, defence systems and specialised drone platforms. The company claims it has manufactured and sold more than 3,000 drones.

The numbers arrive as Garuda moves closer to the public markets. It confidentially filed draft IPO papers with SEBI in April 2026 and received the regulator’s approval in August. Its board has approved a fresh issue of up to ₹750 crore, while reports have indicated a potential offer- for-sale component of as much as ₹250 crore.

Garuda also approved a ₹57.2 crore private placement in August to support growth, working capital and debt repayment. The IPO story, therefore, is not simply about rising drone demand. Investors will also be watching whether Garuda can preserve profitability as manufacturing and service operations continue scaling simultaneously.