Garuda Aerospace, whose shares are currently trading at around ₹440–₹444 per share in the unlisted market, is gradually expanding its focus from agriculture and civilian drones towards the defence drone and unmanned systems market. The company has traditionally operated through two key businesses — selling drones and providing drone-based services.
In FY26, Garuda Aerospace reported revenue of around ₹205 crore, compared with ₹123 crore in FY25, a growth of approximately 67%. Around ₹106 crore came from its DaaS business, compared with ₹57.8 crore in FY25, marking an increase of about 84%. Revenue from drone sales stood at around ₹99 crore, compared with approximately ₹59 crore in the previous year, up around 66%
The rise in revenue also translated into better profitability for Garuda Aerospace. EBITDA increased from ₹28 crore in FY25 to ₹38 crore in FY26, while PAT rose from ₹14.8 crore to ₹25.92 crore. Overall, the company saw a healthy improvement in its profitability during the year.
Defence Drones: Garuda Aerospace’s Next Growth Area
Garuda Aerospace is now looking to build a bigger presence in the defence drone market. The company has received an order for around 2,000 drones from the School of Artillery in Pune, along with various smaller defence-related orders.
It is also working with defence companies such as BHEL, BEL and HAL on drone-related opportunities. More recently, Garuda partnered with Micron Instruments to develop indigenous drone technologies, including loitering munitions, UAVs and advanced unmanned systems.
The focus on defence comes at a time when the Indian government is looking to procure around ₹20,000 crore worth of domestically manufactured drones. Garuda’s defence push also came into focus after General Kapoor, Additional Director, Army Design Bureau, visited the company’s drone manufacturing facility in Chennai. During the visit, Garuda showcased its manufacturing capabilities and new products being developed for the defence and unmanned systems market.
For Garuda, the shift towards defence could open up a new growth opportunity beyond its existing agriculture and civilian drone business.
Garuda Aerospace ₹1,000 crore IPO in the pipeline
Garuda Aerospace has received SEBI clearance for its proposed ₹1,000 crore IPO. The issue is expected to include around ₹750 crore through a fresh issue and ₹250 crore through an offer for sale. The company is now expected to move towards filing its updated DRHP as it progresses with the IPO process.
Alongside the IPO, Garuda is also raising a pre-IPO round at ₹575 per share. The company plans to raise around ₹51.69 crore, implying a valuation of approximately ₹3,049 crore. Shareholders have also approved the proposed fundraise, with the resolution receiving around 99.99% votes in favour at the AGM.
GARDUA AEROSPACE UNLISTED SHARE VALUTION
In the unlisted market, Garuda Aerospace is trading at ₹444 per share, with a market capitalisation of ₹2,315 crore and a price-to-earnings ratio of 86 times. The company has a price-to-book value of 9.45 times and a PEG ratio of 2.39 times.
Compared with its listed peer, ideaForge, which is trading at ₹905 per share, the company has a market capitalisation of ₹3,558 crore, a price-to-earnings ratio of 86 times, and a price-to-book value of 5.73 times.
| Peer to Peer | PRICE | MARKET CAP | P/E | P/B | ROE | REVENUE GROWTH | CASH CASHNVERSION RATIO |
| GARUDA | 444 | 2284 | 86 | 9.45 | 12.78% | 67% | 362 |
| IDEAFORGE | 798 | 3966 | 1009 | 5.73 | -3.34% | 40.26% | 587 |
Now, Garuda Aerospace is raising funds at ₹575 per share, implying a valuation of around ₹3,049 crore, which is a 43% premium to its current unlisted-market valuation.
What should be watched now?
Garuda’s defence pivot will be the key factor to watch. Apart from converting defence orders into revenue, working capital will be important, as defence drone projects typically have longer execution and payment cycles than its existing agriculture business. Investors should therefore track defence revenue, order conversion, receivables and cash flow as the company scales.