Citing sturdy prospects however a danger of order delays, home brokerage agency JM Monetary downgraded its score on the inventory from Purchase to Add, with a goal worth of Rs 905 (beforehand Rs 875), as a result of sturdy run-up within the inventory, i.e. 100% within the final six months.
Ministry of Defence’s Drone Procurement Programme
The Indian Ministry of Defence (MoD) has deliberate a Rs 20,000-crore drone procurement programme, largely targeted on tactical and surveillance UAVs. These are anticipated to be procured by the fast-track procurement route, with an 18–24-month supply timeline. Nonetheless, different alternatives below the programme are at varied phases of approval, which may defer challenge awards to FY28/29.
JM Monetary’s outlook
In line with JM Monetary, the corporate’s Q1 outcomes had been sturdy on execution however weak on order inflows and profitability. Order ebook on the finish of this quarter stood at Rs 257 crore, implying order inflows of Rs 11.2 crore for the quarter, which is considerably decrease each year-on-year in addition to quarter-on-quarter, as per the brokerage’s word.
Whereas order prospects stay sturdy with sturdy coverage thrust on procurement of tactical drones, a lot of the tenders are within the approval phases, which can push the interpretation of those prospects to inflows to FY28–29. JM Monetary expects order inflows to weaken YoY in FY27 and choose up in FY28 and FY29, with influx estimates aggregating to Rs 1,500 crore over the following two years.
JM Monetary expects execution momentum to stay sturdy within the coming quarters. Administration has guided for gross margins to stay at 50–55% in FY27, supported by the execution of high-margin orders. The brokerage estimates income to develop at a CAGR of round 47% over FY26–29E as order inflows choose up in FY28/29. It expects working leverage to drive EBITDA margins from 2% in FY26 to round 30% in FY29, with revenue after tax estimated to rise to Rs 27.6 crore in FY28 and Rs 170 crore in FY29.
ideaForge Know-how Q1 outcomes
ideaForge Know-how reported a gross revenue of Rs 33.6 crore, up from Rs 7.9 crore within the year-ago quarter. Nonetheless, gross revenue margin declined to 49% from 62% in the identical quarter final yr. Income from operations stood at Rs 68.6 crore throughout this June quarter, with the corporate executing over 20% of its opening FY27 order ebook, in line with a regulatory submitting launched after market hours on Monday.In line with the corporate’s assertion, international provide chain disruptions and element availability proceed to pose challenges because the March quarter of FY26. Nonetheless, the corporate stays targeted on finishing supply of the opening order ebook of FY27 by Q3 as per buyer timelines.
Additionally learn | ideaForge Know-how shares slide 5% after Q1 gross revenue margin falls 49%
On order ebook visibility for FY27, co-founder and CEO Ankit Mehta mentioned that the upper operational procurement limits for subject commanders of Indian Defence Forces below DFPDS 2026 would speed up procurement actions in Q3 and This autumn, and that the corporate continues to see common cycles on the civil side of the enterprise that lean in the direction of Q3 and This autumn.
(Disclaimer: Suggestions, ideas, views, and opinions given by consultants are their very own. These don’t characterize the views of The Financial Instances.)
