ideaForge Technology Ltd reports 41.3% profit jump in Q2 FY26; expands US presence with new JV.

ideaForge Technology Ltd has reported robust financial results for the second quarter of Fiscal Year 2026, with net profit soaring by 41.3% to ₹19.5 crore, up from ₹13.8 crore in the same period last year. Revenue from operations also saw a healthy 10% increase, reaching ₹40.8 crore from ₹37.1 crore. Despite these gains, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) experienced a 28.9% drop to ₹11.3 crore compared to ₹15.9 crore a year prior. The company attributed a decline in gross margin to 50.0% (from 61.7% in the previous quarter) to the product mix delivered during the period.

Impact This news has a moderate impact (6/10) on the Indian stock market, particularly for investors in the defence and technology sectors. The profit growth is positive, but the EBITDA decline and margin squeeze warrant investor attention. The strategic international expansion, however, presents significant long-term growth opportunities.

This quarter also marked key strategic advancements. ideaForge's US subsidiary formed a joint venture with First Breach Inc. to manufacture and market select Unmanned Aerial Vehicles (UAVs) in the United States. Furthermore, its Q6 UAV achieved NATO Stock Number (NSN) accreditation, paving the way for potential inclusion in NATO and allied procurement systems, which is a crucial step for global defence market penetration. The company also launched new offerings like Q6 V2 Geo and SHODHAM M61 at its customer event, PRAGYA, and its UAVs were deployed for disaster response operations.

Difficult Terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. Gross Margin: The difference between revenue and the cost of goods sold, expressed as a percentage of revenue. It indicates profitability before operating expenses. UAVs: Unmanned Aerial Vehicles, commonly known as drones. These are aircraft without a human pilot aboard. NATO Stock Number (NSN): A 13-digit numeric code assigned to every item of supply managed by NATO countries. It identifies standardized items for logistical purposes, facilitating procurement.