Ideaforge Technology shares rallied 20% despite Q4 loss, sharp revenue drop

Shares of Ideaforge Technology Ltd zoomed 20 per cent in Friday's trade to hit a high of Rs 463.20 even as the company recorded a loss in its fourth quarter earnings and an 80 per cent cut in revenue. Today's sharp rise came even as the company posted a net loss in the January-March 2025 quarter.

Makers of select domestic drones and anti-drone systems, including Ideaforge, saw their shares soaring amid hopes of a rise in demand for such sophisticated defence systems due to an escalation in India-Pakistan tensions.

On the earnings front, IdeaForge reported a net loss of Rs 26 crore in the March 2025 quarter compared to a net profit of Rs 10 crore during the year-ago quarter. Revenue from operations also tumbled 80 per cent year-on-year (YoY) to Rs 20 crore in Q4 FY25 as against Rs 102 crore in the corresponding period last year.

As the end of fourth quarter, the company's order book was at Rs 13.6 crore, which is lower than the Rs 20.7 crore order reported in the previous quarter.

Technically, IdeaForge's scrip traded higher than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs) but lower than the 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 69.91. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a negative price-to-equity (P/E) ratio of 102.69 against a price-to-book (P/B) value of 2.99. Earnings per share (EPS) stood at (-)4.45 with a return on equity (RoE) of (-)2.91. According to Trendlyne data, IdeaForge has a one-year beta of 1.1, indicating high volatility.

As of March 2025, promoters held a 29.17 per cent stake in the company. Ideaforge is a vertically-integrated company that designs, develops and manufactures indigenous unmanned aerial vehicles (UAVs).