Garuda Aerospace delivered a strong financial performance in FY2025-26, with revenue rising sharply and profit continuing to grow. At the same time, the company has entered an important phase of its corporate journey, having transitioned into a public limited company and moved forward with preparations for its proposed IPO.
The latest Annual Report also highlights another significant development for investors tracking Garuda Aerospace: the company has proposed a ₹57.20 crore private placement at ₹575.18 per share, subject to shareholder approval.
For investors following Garuda Aerospace in the unlisted market, the FY2025-26 Annual Report therefore offers important insights into the company's financial performance, business scale, capital raising and potential IPO trajectory.
Garuda Aerospace FY2025-26 Financial Performance
Garuda Aerospace recorded substantial growth in FY2025-26, with turnover increasing from ₹123.46 crore in FY2024-25 to ₹205.96 crore in FY2025-26, representing growth of approximately 66.8%.
Profitability also improved during the year. Profit before tax increased from ₹25.41 crore to ₹34.06 crore, while profit after tax rose from ₹18.37 crore to ₹25.92 crore.
| Particulars | FY2024-25 | FY2025-26 | Growth |
|---|---|---|---|
| Turnover | ₹123.46 Cr | ₹205.96 Cr | 66.8% |
| Profit Before Tax | ₹25.41 Cr | ₹34.06 Cr | 34.1% |
| Profit After Tax | ₹18.37 Cr | ₹25.92 Cr | 41.1% |
The numbers indicate that Garuda Aerospace has moved into a significantly higher revenue scale while maintaining profitability. The company also reported total income of ₹206.22 crore during FY26, compared with ₹124.81 crore in FY25.
An important feature of the revenue growth is that it was not driven only by drone sales. Garuda Aerospace reported ₹99.36 crore from the sale of drones and drone parts, while ₹106.46 crore came from services. This reflects the company's broader business model, which includes drone-enabled services alongside the sale of hardware.
The Annual Report also states that Garuda Aerospace crossed 3,000 drones manufactured and sold, while expanding its presence across India through 300 Centres of Excellence.
Revenue Growth Comes From Both Products and Services
The FY26 revenue mix provides an important insight into the evolution of Garuda Aerospace.
Of the ₹205.96 crore revenue from operations:
₹99.36 crore came from the sale of drones and drone parts.
₹106.46 crore came from services.
₹1.33 crore came from delivery charges.
Service revenue increased substantially from ₹57.83 crore in FY25 to ₹106.46 crore in FY26, while drone and drone-parts sales increased from ₹59.71 crore to ₹99.36 crore.
This nearly balanced contribution from products and services is significant because it highlights that Garuda Aerospace is building a business beyond the one-time sale of drones, with technology-enabled services becoming an important part of its revenue base.
₹57.20 Crore Private Placement at ₹575.18 Per Share
One of the key developments for investors tracking Garuda Aerospace is the proposed private placement announced after the end of FY2025-26.
On 17 August 2026, the Board approved a proposal to issue 9,94,498 equity shares at ₹575.18 per share, aggregating to approximately ₹57.20 crore. The proposal is subject to shareholder approval at the company's Annual General Meeting scheduled for 18 September 2026.
Garuda Aerospace Unlisted Shares
Who is participating in the proposed issue?
The proposed placement is particularly notable because of the participation of AVCF1 LP, acting through Aditum Management GP 1 Ltd., which has been proposed to subscribe to 8,69,293 shares for ₹50 crore.
The remaining proposed investment is spread across four other allottees:
| Proposed Allottee | Proposed Investment |
|---|---|
| AVCF1 LP / Aditum Management | ₹50.00 Cr |
| Umasankar Nistala | ₹2.50 Cr |
| Rakesh Pillai | ₹2.50 Cr |
| Vimaan Innovators LLP | ₹1.70 Cr |
| Jitendra Rana | ₹0.50 Cr |
| Total | ₹57.20 Cr |
The proposed issue price of ₹575.18 per share also provides an important reference point for investors following the Garuda Aerospace unlisted share market.
Based on the post-issue share capital disclosed in the AGM documents, the proposed price translates into an implied post-issue equity value of approximately ₹3,056 crore. This is an implied value based on the proposed issue price and should not be interpreted as a formally stated company valuation.
What does the private placement mean for existing shareholders?
The proposed issue represents approximately 1.87% of the post-issue equity share capital. The AGM documents indicate that promoter holding would move from 76.91% to 75.47%, while institutional investor holding would increase from 2.25% to 3.84% following the proposed allotment.
For investors, the significance of the transaction goes beyond the ₹57.20 crore being raised. The ₹575.18 per-share issue price provides a recent institutional/private-market reference point for Garuda Aerospace, particularly as the company moves closer to its proposed public-market journey.
Next: Garuda Aerospace's IPO Journey
The private placement comes at an important stage for the company. During FY26, Garuda Aerospace transitioned from a private limited company to a public limited company, with a fresh Certificate of Incorporation issued on 5 December 2025.
The Annual Report also states that the company's proposed IPO process is in progress, subject to regulatory and other approvals, and IPO-related expenses have already been recognised as deferred IPO expenses in the financial statements.
This makes the sequence particularly relevant for investors:
Strong FY26 growth → Public company conversion → IPO preparations → Proposed ₹57.20 crore private placement
The combination of improving financial scale and these capital-market developments makes FY26 an important year in the growth story of Garuda Aerospace.
Garuda Aerospace's Drone Business Continues to Scale
Beyond the financial numbers, the Garuda Aerospace Annual Report 2025-26 highlights the scale the company has built across India's growing drone ecosystem.
During FY26, Garuda Aerospace manufactured and sold more than 3,000 drones and expanded its presence through 300 Centres of Excellence across India. The company also served customers across agriculture, defence, surveillance, infrastructure, industrial inspection, mapping, logistics and other applications.
An important aspect of the business is its combination of drone manufacturing and Drone-as-a-Service (DaaS). In FY26, service revenue reached ₹106.46 crore, surpassing revenue from the sale of drones and drone parts at ₹99.36 crore. This indicates that services are becoming an increasingly important component of Garuda Aerospace's overall business.
What Should Investors Watch Going Forward?
For investors tracking Garuda Aerospace, the FY26 Annual Report presents a combination of strong growth and important developments to monitor.
The company has significantly increased its revenue and profitability, while its growing service business provides another avenue for expansion. At the same time, the sharp increase in trade receivables and the company's cash position make working-capital management and cash generation important metrics to watch as the business grows.
The proposed ₹57.20 crore private placement at ₹575.18 per share, together with the ongoing IPO process, adds another important dimension to the company's next phase.
Conclusion
Garuda Aerospace's FY2025-26 performance marks a significant step up in scale. Revenue increased nearly 67%, PAT crossed ₹25 crore, service revenue crossed ₹100 crore, and the company continued to expand its drone manufacturing and service ecosystem.
With the company now operating as a public limited company, its proposed private placement and ongoing IPO preparations make the latest developments particularly relevant for investors following Garuda Aerospace shares in the unlisted market.
The key question going forward will be whether Garuda Aerospace can convert its rapid revenue growth into sustained profitability and stronger cash generation while scaling its drone and technology-led services business.
