IdeaForge Shares Soar 10% After ₹137 Crore Defence UAV Deal with MoD
By Shishta Dutta | Published at: Jun 23, 2025 05:42 PM IST
Mumbai, 23 June 2025 – Shares of IdeaForge Technology Ltd (NSE: IDEAFORGE) rallied sharply on Monday, surging 10% to hit the upper circuit at ₹631.05, following the announcement of a major defence order. The Ministry of Defence (MoD) has awarded the company a domestic contract worth approximately ₹137 crore, inclusive of all charges, for the supply of Mini Unmanned Aerial Vehicles (UAVs) along with their associated accessories.
As of 3:30 PM IST on 23 June 2025, shares of ideaForge Technology Ltd closed at ₹631.05, marking a sharp gain of ₹57.35 or 10% for the day. The stock opened at ₹575.00, touched an intraday low of ₹573.00, and surged to a high of ₹631.05, hitting its upper circuit limit by 3:20 PM IST. The company’s market capitalisation now stands at ₹2,730 crore. Currently, the stock does not have a price-to-earnings (P/E) ratio or a dividend yield. Over the past 52 weeks, ideaForge has registered a high of ₹864.40 and a low of ₹304.20, reflecting significant price volatility within the year.
Contract Highlights: Key Details of the Order
| Particulars | Details |
|---|---|
| Client | Ministry of Defence |
| Order Value | Approx. ₹137 crore |
| Nature of Order | Mini UAVs with accessories |
| Execution Timeline | 12 months |
| Entity Type | Domestic |
| Promoter/Group Interest | None |
| Related Party Transaction | No |
The order will be executed over a 12-month period, with no related party involvement or promoter interest. The contract is strictly domestic in scope and reaffirms IdeaForge’s growing stature in India’s defence procurement landscape.
Market Reaction: Stock Hits Upper Circuit
| Metric | Value |
|---|---|
| Last Traded Price | ₹631.05 |
| Day’s Change | +₹57.35 (+10%) |
| Previous Close | ₹573.70 |
| Traded Volume | 36.53 lakh |
| Traded Value | ₹224.94 crore |
| VWAP | ₹615.81 |
| 52-Week High | ₹864.40 |
| 52-Week Low | ₹304.20 |
| Total Market Cap | ₹2,724.54 crore |
| Free Float Market Cap | ₹1,323.32 crore |
The stock hit its daily upper price band, with more than 4.37 lakh buy orders and no sellers, reflecting intense investor interest and bullish sentiment post-announcement.
About IdeaForge Technology Ltd
Listed on 7 July 2023, IdeaForge is a prominent Indian company in the aerospace and defence sector, focused on the design and manufacture of drones (UAVs) for tactical and high-security applications. The company plays an active role in India’s indigenous defence initiatives and regularly secures contracts from various government departments.
Its products cater to a range of use cases including surveillance, mapping, border security, and emergency response. IdeaForge is seen as a key beneficiary of India’s push for self-reliance in defence manufacturing under the Atmanirbhar Bharat mission.
Financial Headwinds Persist Despite Fresh Order Win
Despite securing a significant new defence contract, ideaForge Technology Ltd reported a net loss of ₹26 crore for the March 2025 quarter, a sharp contrast to the ₹10 crore net profit posted in the same period last year. Revenue for the quarter fell steeply by 80% year-on-year, dropping to ₹20 crore from ₹102 crore. The company’s EBITDA also turned negative, recording a loss of ₹17 crore, compared to a profit of ₹20 crore in the corresponding quarter of FY24.
For the full financial year FY25, revenue contracted by 48.6%, with margin pressure evident across all operating metrics:
- Gross margin declined to 33% from 49.9% in FY24
- EBITDA margin dropped to -19.6% from 27.4%
- PAT margin plunged to -38.6% from 14.4%
Nonetheless, the stock’s rally echoed broader sector sentiment. Apollo Micro Systems Ltd rose 10% to ₹214, while Zen Technologies gained 5% to ₹1,994.60, following its foray into the UAV space through the acquisition of TISA Aerospace. The defence ministry’s latest order to ideaForge reflects continued government support for domestic drone procurement, even as private manufacturers face financial pressure.
On the performance front, ideaForge shares have declined 22% over the past year, but have gained 1.07% year-to-date and 19.78% in the last month, buoyed by recent order inflows and positive sector developments.
Regulatory Disclosure
This announcement is made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI Circular SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated 11 July 2023.
REF: https://nsearchives.nseindia.com/corporate/IDEAFORGE_23062025114858_Intimation_Reg_30_23062025.pdf
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