The shares of Ideaoforge Technology were listed in 2023 with a brilliant premium. But, since then it has declined. There is also a decline in the company’s margin. The company has been continuously operating. Excoction has also seen weakness. This has affected the prices of shares. Despite this, opportunities in the domestic and foreign markets for the company have not reduced. The company is expected to have an exhibit of procurement order worth Rs 132 crore in the next 12 months.
Government’s PLI scheme will benefit
Ideaforge Technology The order pipeline is worth Rs 400 crore. This can lead to the company’s growth further. Also, it will get the benefit of the government’s expenses on PLI scheme and R&D. However, the company’s performance has not shown improvement in the June quarter. The company’s revenue has decreased by 85.2 per cent year after year. The company’s net loss stood at Rs 23.5 crore in the June quarter. Revenue has also fallen 37.1 percent from the operation on a year -on -year basis. It has fallen from 20.3 crores to Rs 12.7 crore.
Company is successful in making a big shortage in expenses
Despite a sharp fall in revenue, the company has been successful in bringing its experiences to Rs 32 crore in the June quarter. It was Rs 42 crore in the March quarter. However, this was insufficient to prevent the decline in cost control margin. The company’s expenses were higher than its income. The Ebitda fell 13 per cent on a quarterly basis. The Ebitda margin also declined by 4,172 basis points.
Company is also working on Advanced UAV
The company’s order book was Rs 144.8 crore in the first quarter of FY26. This is 0.89 times the annual revenue. Under the fifth bicycle of the government’s emergency procurement, it has received an order of Rs 137 crore from Mini UAV. This order has been received before the government’s sixth procurement cycle before the allocation of Rs 40,000 crore. The company is also working on Advanced UAV.
European market will benefit
The performance of Ideaoforge Technology will depend on how successful the company is in getting new orders. Especially in the second half of FY26, there will be an eye on new orders and examinations. The company is trying to increase its penetration in the European market. This will benefit the plan to increase NATO spending on weapons and defense equipment.
Should you invest?
Currently, the FY27’s estimated earnings are being traded at 69 times the shares of Ideaoforge Technology. Given the strong order pipeline, the company’s outlook looks positive. The company will get the benefit of the government’s focus on R&D and expansion in the European market. However, investors should wait until the situation is clear in terms of existence in view of the company’s high valuation.