In terms of operational profitability, the drone maker's EBITA for the fiscal year jumped 31.8% to ₹35.1 Cr in FY26 from ₹26.6 Cr in the FY25.

Operating revenue surged 66.8% YoY to ₹206 Cr during the fiscal under review from ₹123.5 Cr in the previous year. Sales of drones and drone parts brought in ₹99.4 Cr to the top line while the remaining ₹106.5 Cr via sale of services. Another ₹15 Lakh was earned from delivery charges.

Including other income of ₹26.5 Lakh, total income for the fiscal stood at ₹206.2 Cr.

"During the year, we continued to strengthen our manufacturing capabilities, expand our Drone-as-a-Service (DaaS) operations, deepen our investment in indigenous research and development, and build strategic partnerships in India and international markets. We also advanced our capabilities in artificial intelligence, autonomous flight, data analytics, defence systems and specialised mission platforms," cofounder and whole-time director Agnishwar Jayaprakash noted in a message to shareholders.

The improvement in the financial performance comes as Garuda's proposed public listing plans take shape. The startup took the pre-filing route to confidentially submit its draft IPO papers with the SEBI earlier in April. The IPO was greenlit by the markets regulator in August.

While the startup is yet to file its updated DRHP for public access, its board approved plans to raise up to ₹750 Cr via the fresh issue component of the proposed IPO back in March. As per reports, the OFS component could result in investors offloading shares worth as much as ₹250 Cr.

In its annual report for FY26, the startup disclosed that its board of directors had approved a private placement of equity shares worth ₹57.2 Cr back in August. Investors who backed the startup were Umasankar Nistala, Rakesh Pillai, Jitendra Rana, Vimaan Innovators LLP and Aditum Management.

The proceeds of the issue would fuel business growth, working capital requirements, and be used for loan repayments.

The startup claims to have become India's largest drone maker, having manufactured and sold over 3000 drones. It also claimed to be the first drone company to partner with three defence PSUs.

It has raised a total funding of over $37 Mn to date from investors like Venture Catalysts, We Founder Circle, cricketer Mahendra Singh Dhoni, among others. It was last valued at $250 Mn after raising a $11 Mn Series B funding round led by Venture Catalysts.

Where Did Garuda Aerospace Spend In FY26?

Garuda Aerospace's total expenses in FY26 rose 73.2% YoY to ₹172.2 Cr from ₹99.4 Cr in FY25. It reported no exceptional items during the fiscal but bore ₹8.2 Cr tax expenses.

Here are the main operational expenses of the startup:

• Cost of Materials Consumed: Representing the largest operational expense, raw material costs surged 61.5% YoY to ₹116.8 Cr from ₹72.3 Cr in FY25.
• Impairment Losses on Financial Assets: Impairment losses amounted to ₹11.1 Cr in FY26, compared to ₹6.5 Lakh in the year-ago period.
• Employee Benefit Expenses: Garuda Aerospace's personnel-related costs decreased 16.7% YoY to ₹8 Cr in FY26 from ₹9.6 Cr in the previous year.
• Depreciation And Amortisation Expenses: The cost recorded under this line item increased 13.3% YoY to ₹4.1 Cr in FY26 from ₹3.6 Cr in FY25.
• Other Expenses: Spending on items like professional expenses, travel, maintenance, rent, and other corporate overheads stayed nearly flat at ₹29.2 Cr.