India’s only listed drone-maker is flying high
₹1,270 (as of July 11), the stock is still up around 90% from its issue price of ₹672. Part of the enthusiasm is undoubtedly due to a strong bull market. However, Ideaforge is a cutting-edge technology company – a market leader in unmanned aerial vehicles (UAV).
Promoted by three entrepreneurs from IIT-Bombay, it makes a range of drones for civilian and defence use and is currently the only listed drone maker in India. The company has a footprint across every common civil and military vertical except logistics. Apart from agricultural support, it offers mapping applications and is used extensively for defence, security and surveillance.
Ideaforge is by far the largest Indian pure-play drone manufacturer, and it’s profitable. In FY22 the company reported revenues of ₹160 crore, operating profits of ₹73 crore, and profit after tax of ₹44 crore. The IPO projections indicate it may register revenue of around ₹186 crore in FY23.
There’s a huge and expanding range of civilian and military applications and use-cases for drones. Capable of performing tasks in difficult terrain, they are safer than using humans in high-risk environments. The global market for drones is expected to grow at a compound annual growth rate (CAGR) of 20%, from $21 billion in 2022 to $91 billion by 2030.
Defence drones alone accounted for around $10 billion of the market in 2022. Although R&D for defence drives cutting-edge design, the civilian sector could grow even faster as more off-the-shelf uses are discovered. Passenger services and ambulance services are two possibilities.
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