Garuda Aerospace Ltd

The Short Version :

Garuda Aerospace Limited, founded in 2015 and headquartered in Chennai, is an integrated drone technology company spanning design, manufacturing, and deployment of unmanned aerial systems across agriculture, defence, surveillance, infrastructure, mapping, logistics, and disaster management, serving 400+ cities across 16 countries. FY26 revenue from operations grew 66.82% to Rs 205.96 crore from Rs 123.46 crore, with PAT up 41.10% to Rs 25.92 crore from Rs 18.37 crore. EPS came in at Rs 4.99 versus Rs 3.67 a year earlier (both on a post-split, post-bonus comparable basis), with ROE at 10.80% for the year. The company also completed a large bonus issue and a 5:1 stock split during FY26, taking shares outstanding from roughly 1.08 crore to 4.82 crore.

Why It Trades Where It Does :

Garuda's growth is genuine on the topline, revenue up 66.82% against PAT up 41.10%, meaning margins compressed slightly even as the business scaled, with total expenses rising faster in the mix (impairment losses on financial assets jumped to Rs 11.13 crore from Rs 0.07 crore). Trade receivables also grew 109.4% to Rs 234.40 crore, far outpacing revenue growth, worth watching for collection quality as the customer base scales. Book Value per Share stands at Rs 49.71 on the current 4.82 crore-share base. The bonus issue and share split during the year are the kind of housekeeping companies typically do ahead of a public listing, rather than routine capital actions, and no dividend was recommended for FY26, consistent with a business reinvesting in growth.

Top Risks :

• Trade receivables grew 109.4% year-on-year, nearly double the pace of revenue (66.82%), a warning sign on collection discipline as the business scales.

• Impairment losses on financial assets jumped to Rs 11.13 crore from just Rs 0.07 crore, an early signal of some receivables or asset quality strain.

• PAT growth (41.10%) trailing revenue growth (66.82%) shows margins are under some pressure even during a strong growth phase.

Top Opportunities :

• Revenue nearly grew 1.7x in a single year, reflecting strong demand across the company's agriculture, defence, surveillance, and infrastructure drone segments.

• A diversified product and service portfolio (hardware plus Drone-as-a-Service) reduces dependence on any single customer vertical.

• The FY26 bonus issue and stock split point toward listing-readiness, which could bring a liquidity and governance upgrade for existing shareholders.

Disclaimer :

Priveq.in is an informational platform for unlisted and pre-IPO shares, operated by Priveq Investech Private Limited (the named counterparty on transactions). Unlisted shares carry risks including illiquidity, valuation uncertainty, and limited regulatory disclosure. This page is informational only and does not constitute investment advice.