IdeaForge to increase R&D spending this fiscal to boost UAV innovation

City-based drone maker ideaForge is planning higher R&D spend this fiscal year, as it develops technology and product platforms in the unmanned aerial vehicle (UAV) space.

With the government committed to fostering domestic drone research, development, and manufacturing, continuous innovation through product and market research is essential for sustained growth in the UAV sector, the company said.

"The R&D (research and development) spend last year was 22 per cent of our revenues. This year, depending on the revenue, the base may shift, but it will be on the higher side as compared to FY24," Ankit Mehta, co-founder and chief executive officer at ideaForge Technologies Ltd said.

The company's consolidated revenue from operations in fiscal year ended March 31, 2024 stood at Rs 314-crore, while the Profit After Tax was at Rs 45.27 crore.

For the latest December quarter, it reported a consolidated loss of Rs 24.02 crore. It had posted a PAT of Rs 14.7 crore in Q3FY24, while the consolidated revenues for the same period dropped to Rs 17.6 crore, from Rs 90.9 crore in the corresponding period a year ago.

The company further said that it is expecting its run-rate business -- the recurring revenue generated from existing contracts and ongoing operations, rather than large, one-time deals -- to contribute substantially in its overall topline.

India's drone industry is evolving rapidly, propelled by the increasing number of manufacturers and service providers entering the market, alongside supportive regulations, according to the company.

ideaForge recently announced strategic investment and a partnership with Silicon Valley (California)-based nano and micro-UAV provider Vantage Robotics Inc to further strengthen its global reach and R&D capabilities.

ideaForge was founded in 2007 by Ankit Mehta, Ashish Bhat, and Rahul Singh. It has financial backing from marquee investors such as Infosys and Qualcomm Ventures.

It designs and manufactures drones for mapping, security, and surveillance applications across sectors such as defence, homeland security, mining, construction, agriculture, energy, and utilities through its advanced R&D and manufacturing hubs in Navi Mumbai and Bengaluru.

Besides, it also has a strategic presence in Delhi and the US.