ideaForge Technology reported a turnaround in Q2 FY27, posting a net profit of Rs 77.48 million compared to a loss in the previous year. Revenue from operations jumped 119% year-on-year to Rs 912.85 million. The company has also utilized Rs 2,085 million from its recent Rs 5,000 million QIP fundraise for debt reduction and working capital.
ideaForge Technology Reports Q2 FY27 Profit of Rs 77.48 Million
ideaForge Technology (Rs 912.85 million Revenue) delivered a strong financial performance for the quarter ended September 30, 2026.
Reader Takeaway: Strong revenue growth and debt reduction drive profitability, though investors should monitor remaining QIP capital deployment.
What just happened
ideaForge Technology has successfully returned to profitability, reporting a standalone net profit of Rs 77.48 million for Q2 FY27. This follows a loss of Rs 23.07 million in the previous quarter and a loss of Rs 150.59 million in the corresponding quarter last year. Revenue from operations saw a sharp rise to Rs 912.85 million, reflecting 33.4% sequential growth and 119% year-on-year growth.
Why this matters
The results mark a significant operational milestone for the drone manufacturer. The shift to profit is supported by robust top-line performance. Furthermore, the company has begun aggressively deploying capital raised through its July 2026 QIP. Of the Rs 5,000 million raised, Rs 2,085.19 million has already been utilized, with Rs 1,200 million specifically allocated to full loan repayment, which should improve the company's interest cost profile.
Accounting Update
Starting June 30, 2026, the company transitioned its depreciation method for property, plant, and equipment from the written down value method to the straight-line method. This change positively impacted the profit before tax by Rs 4.69 million for the current quarter.
Risks to watch
Investors should be mindful of the remaining QIP proceeds of Rs 2,764.81 million. The effectiveness of this capital in scaling operations will be critical. Additionally, the change in depreciation accounting methods makes direct year-over-year profit comparisons slightly complex, as the current accounting treatment favors higher reported margins.
What to track next
Watch for sustained revenue momentum in the coming quarters and the planned deployment of the remaining QIP funds into product development and working capital. The company's ability to maintain these margins without relying on accounting adjustments will be a key performance indicator.