Garuda Aerospace FY26 Results: 67% Sales Rise, Cash Gap

TL; DR

• Garuda Aerospace Revenue Soars 67% To Rs. 205.96 crore, compared with Rs. 123.46 crore in FY25.

• Net profit rose 41% to Rs. 25.92 crore from Rs. 18.37 crore in the previous financial year.

• Total expenses grew 73.2% to Rs. 172.16 crore, while EBIT rose 31.8% to Rs. 35.10 crore.

• The board approved a Rs. 57.2 crore private placement in August 2026, SEBI issued observations on its IPO filing on August 5, 2026.

• Trade receivables were Rs. 234.40 crore and operating cash flow was negative Rs. 41.55 crore.

• Garuda Aerospace's indicative unlisted share price stood at Rs. 431 on October 22, 2026.

Introduction

Garuda Aerospace Limited declared strong financial results for FY 2025-26 with revenues growing 67% to Rs. 205.96 crore and net profit rising 41% to Rs. 25.92 crore. However, total expenses increased 73.2% to Rs.172.16 crore.The company had also approved private placement of equity shares worth Rs 57.2 crore in August 2026, ahead of its proposed IPO.

Chennai-based drone maker, backed by MS Dhoni, is expanding its footprint in agriculture, defense, industrial applications and Drone-as-a-Service (DaaS). The profit and loss statement shows business growth but high trade receivables and negative operating cash flow remain a concern for investors.

Garuda Aerospace FY26 results: Revenue grows 67%, profit increases 41%

Garuda Aerospace posted revenue from operations of Rs 205.96 crore for the financial year ended March 31, 2026.This is a growth of approximately 67% over Rs. 123.46 crore in FY25.

Net profit rose to Rs 25.92 crore from Rs 18.37 crore, a year-on-year growth of about 41 per cent. Total income including other income stood at Rs. 206.23 crore in FY26 as against Rs. 124.81 crore in FY25.

Garuda Aerospace FY26 financial highlights

All figures are in Rs. crore, except EPS, margins and growth percentages. Figures are rounded. FY25 comparative figures are based on the Ind AS presentation.

Sources: Garuda Aerospace annual reports, Inc42 FY26 results coverage.

The reduction in net profit margin indicates that the increasing revenue has not yet translated into proportionate profit. Investors’ next key development will be whether Garuda can sustain revenue growth while controlling costs and improving cash collection.

Two streams of revenue: Drone sales and services

The bulk of Garuda Aerospace’s revenue comes from its drone and services business. The company operates across agriculture, defence, infrastructure inspection, surveillance, mapping and professional drone training.

Its FY26 results show that service revenue has become a major contributor.

Garuda Aerospace expenses rise 73% in FY26

One of the important developments in the latest financial reporting is the increase in Garuda Aerospace's overall expenses. Total expenses rose 73.2% to Rs. 172.16 crore in FY26 from Rs. 99.40 crore in FY25.

Garuda Aerospace expense breakdown

Figures in Rs. crore. The table highlights major expense categories and does not separately show every profit-and-loss line item.

What caused the increase in expenses?

The biggest contributor was the cost of materials consumed which increased to Rs. 116.82 crore from Rs. 72.32 crore. More production and more business activity meant more material was needed. Another big factor was the Rs 11.13 crore impairment loss on financial assets as compared to Rs 0.07 crore approx. in FY25.

These charges relate to expected credit losses and other impairment adjustments on financial assets.Interestingly, employee expenses dropped in the face of revenue growth. In its manufacturing and service delivery cost structure, the company has also outsourced contract costs of around Rs. 51.87 crore. This would imply using external service providers for support with operations.

Garuda Aerospace balance sheet: High receivables remain a concern

Garuda Aerospace's balance sheet shows a significant increase in assets and shareholders' equity during FY26. However, trade receivables also increased sharply.

Garuda Aerospace balance sheet comparison

All amounts are in Rs. crore, except the debt-to-equity ratio.

Garuda Aerospace raises Rs 57.2 crore via private placement ahead of IPO

The board of Garuda Aerospace has approved the equity shares issue worth Rs. 57.2 crore in August 2026, a key development not covered in the original article. The board approved the equity fundraising to support the expansion of the business, citing the company’s FY26 annual report disclosures in October 23 reporting.

The investors reported to have participated in the private placement are:

• Umasankar Nistala

• Rakesh Pillai

• Jitendra Rana /

• Innovators LLP Vimaan

• Aditum Management,

proceeds are proposed to be used for business expansion, working capital requirements & loan repayments. This is important since Garuda’s FY26 cash-flow numbers indicate it has depended on financing activities to support operations and investment.

However, the board's approval should not be misconstrued as confirmation of the entire Rs. 57.2 crore being received. Reported for approval Aug 2026, after the FY26 reporting period ended on March 31, 2026.

Source: Inc42, October 23, 2026.

Garuda Aerospace IPO at a glance

Garuda Aerospace unlisted share price and valuation

Garuda Aerospace's indicative unlisted share price stood at Rs. 431 as of October 22, 2026, according to Stockify.

This is lower than the Rs. 441 indicative price dated September 19, 2026, referenced in the original blog.

The company remains unlisted, and its shares are not traded through the regular NSE or BSE equity market.

Garuda Aerospace valuation indicators

The P/E is a simple comparison using the dated indicative price and FY26 basic EPS. It is not an independently verified transaction multiple or live market valuation.

What to look out for post Garuda Aerospace FY26 results?

Garuda Aerospace has seen increased revenues and demand for its products and services.

There are a few things investors should be aware of in relation to the company’s unlisted shares, however.

1. Profitability and expense growth: Revenue grew slower than total expenses in FY26 .Investors should watch closely the company’s ability to expand operating and net margins.

2. Trade Receivables: Trade receivables were at Rs. 234.40 crore.Faster collection would be important to boost cash availability

3. Fund Raising Developments: Rs. 57.2 crore private placement sanction may help boost financing, subject to completion and final terms.

4. IPO plans: The final pricing and listing schedule is yet to be announced. The company received SEBI observations.

5. Cash-flow improvement: Garuda needs to show a better conversion of reported earnings to operating cash.

Summary

Garuda Aerospace FY26 results shows strong business growth with 67% increase in revenue at Rs. 205.96 crore, and 41% increase in net profit at Rs. 25.92 crore. However, total expenses increased 73.2%, operating cash flow remained negative at Rs. 41.55 crore, and trade receivables reached Rs. 234.40 crore.

Other important events for the investors tracking the company will be the approval of a Rs. 57.2 crore private placement and SEBI’s comments on the proposed IPO.Growing revenues and continued liquidity pressures present both opportunities and risks.

What is Garuda Aerospace FY26 revenue?

The projected revenue for FY26 gives a 67% increase from Rs 123.46 crore in FY25.

How much profit did Garuda Aerospace report in FY26?

Garuda Aerospace’s net profit for FY26 was Rs 25.92 crore compared to Rs 18.37 crore in FY25, a growth of about 41 per cent.

How much did Garuda Aerospace spend in FY26?

Total expenses increased to Rs 172.16 crore in FY26 from Rs 99.40 crore in FY25, a jump of 73.2%.

How much funding for Garuda Aerospace approved before IPO?

In August 2026, Garuda Aerospace’s board approved private placement of equity shares at Rs 57.2 crore.Proceeds will be used to finance working capital, loan repayment and business growth.