Garuda Aerospace is set to become India's first pure-play listed drone manufacturer. The Chennai-headquartered company filed a confidential DRHP with SEBI in April 2026 for an estimated ₹1,000 crore IPO. This review covers expected dates, financials, business mix, regulatory tailwinds, risks, and a should-you-apply framework.
Key Details at a Glance
| Detail | Information |
|---|---|
| Company | Garuda Aerospace Pvt Ltd |
| DRHP Status | Confidential DRHP filed April 2026 |
| Issue Size | ~₹1,000 crore (estimated) |
| Fresh Issue | Up to ₹750 crore |
| OFS | Undisclosed |
| Price Band | To be announced |
| Lot Size | To be announced |
| Listing | BSE and NSE |
| Lead Managers | SBI Capital, Axis Capital, ICICI Securities, IIFL |
| Expected Listing | December 2026 |
About Garuda Aerospace
Founded in 2015 by Agnishwar Jayaprakash, an IIT Madras alumnus, Garuda Aerospace is headquartered in Chennai and has emerged as India's largest drone manufacturer by fleet size. The company offers more than 30 drone models across agriculture, defence, surveillance, logistics and inspection use cases. A significant portion of revenue comes from a Drone-as-a-Service (DaaS) model, where Garuda owns the fleet and rents flight hours to government and enterprise clients.
The company holds a Guinness World Record for the largest simultaneous drone flight (3,500+ drones, executed in Ahmedabad). In the months leading up to the IPO filing, the board approved a 1:5 stock split (face value reduced from ₹10 to ₹2) to make the post-IPO retail lot size more accessible.
Business Verticals
Agriculture: Kisan drones for crop spraying under the PM-KISAN drone scheme. Garuda is among the largest recipients of central government agriculture drone subsidies, with deployment across Telangana, Maharashtra, Karnataka and Punjab.
Defence: Surveillance UAVs and loitering munitions for the Indian Army, paramilitary forces and DRDO programmes. Direct beneficiary of the Atmanirbhar Bharat defence indigenisation push and iDEX (Innovations for Defence Excellence) framework.
Industrial: Pipeline inspection, power transmission line monitoring, and infrastructure surveys for ONGC, NTPC, Power Grid and large EPC contractors.
Delivery: Last-mile drone delivery corridors are being piloted in Telangana, Tamil Nadu and Gujarat in partnership with state governments and the Ministry of Civil Aviation.
Financial Performance
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue (₹ Cr) | 110.4 | 123.5 |
| PAT (₹ Cr) | 13.1 | 18.4 |
| Revenue Growth | — | +12% YoY |
| PAT Growth | — | +41% YoY |
| EBITDA Margin | ~18% | ~22% |
The company is profitable and has shown accelerating PAT growth — from ₹13 crore in FY24 to ₹18.4 crore in FY25, a 41 percent jump. EBITDA margin expansion (18% → 22%) suggests operating leverage is kicking in as fleet utilisation rises. IPO proceeds are earmarked for DaaS platform scaling, defence contract execution working capital, and select acquisitions of complementary technology stacks.
Why This IPO Matters
Garuda will be the first pure-play drone manufacturer to list in India. The IPO offers retail investors direct exposure to four converging tailwinds:
- Drone PLI scheme — central government incentive pool of ₹120 crore (FY22–FY24, extension under negotiation)
- PM-KISAN drone subsidy programme — up to 80% subsidy for drones used by farmers, FPOs and custom hiring centres
- Defence indigenisation — 30 percent of the defence capital budget mandated for domestic procurement
- Drone corridor development — designated air corridors for medical, e-commerce and infrastructure use cases
Strengths
Regulatory tailwinds: India's Drone Rules 2021 and the subsequent PLI scheme created what is arguably the world's most drone-friendly regulatory environment for domestic manufacturers. Garuda is positioned to benefit disproportionately as the largest indigenous player.
Government relationships: Projects executed for 14+ state governments and multiple central ministries provide both reference deals and a steady recurring revenue base.
First-mover listing premium: No listed pure-play drone peer in India post-listing. Will likely attract dedicated defence-tech and deep-tech fund flows that have struggled to find domestic exposure.
Visible founder: Agnishwar Jayaprakash has strong media presence and government access, which has translated into early-mover government contract wins.
Risks
Revenue concentration: Heavy dependence on government contracts. Procurement delays are common in defence and PSU contracting; payment cycles can stretch beyond 180 days.
Small revenue base: ₹123 crore FY25 revenue versus an estimated ₹1,000 crore IPO size implies aggressive valuation multiples — likely 8–10× sales. This is a growth story, not a value play. Patience is required for the multiple to be justified by execution.
Technology evolution: The global civilian drone market remains dominated by DJI (China) despite Indian import restrictions. If global drone capabilities outpace Indian manufacturing, the moat narrows.
Regulatory shifts: Drone policy is set by the Ministry of Civil Aviation and can change with government priorities. Subsidies and PLI extensions are not guaranteed beyond their announced windows.
GMP Today
GMP for Garuda Aerospace IPO will be updated here once the price band and dates are announced. Track live GMP for all IPOs on our daily-updated grey market tracker.
Should You Apply?
Garuda is a high-risk, high-potential listing. If you believe in the multi-year India drone story — PLI tailwinds, defence indigenisation spending, agriculture modernisation — this is the only pure-play vehicle expected to be available post-listing. Revenue is small relative to expected valuation, so treat this as a 3–5 year growth story rather than a listing-day trade.
Wait for: the final price band, Day 1 and Day 2 subscription data, anchor investor quality (defence-focused mutual funds and FPIs would be strong signals), and the conversion of the confidential DRHP into a public RHP before committing capital. The confidential filing route gives Garuda flexibility on launch timing — track the upcoming IPOs page and our 2026 IPO watchlist for the activation signal.
Not investment advice. Read the DRHP/RHP carefully before applying.
FAQ
When will Garuda Aerospace IPO open?
Expected December 2026. The confidential DRHP was filed in April 2026; final dates will be confirmed only after SEBI issues its observation letter and Garuda converts the confidential filing into a public RHP.
What does Garuda Aerospace do?
Garuda manufactures over 30 drone variants for agriculture, defence, surveillance, industrial inspection and logistics. The company also operates a Drone-as-a-Service (DaaS) platform serving government and enterprise clients on a per-flight-hour basis.
Is Garuda Aerospace profitable?
Yes. FY25 PAT was ₹18.4 crore on ₹123.5 crore revenue — a 41% PAT growth versus FY24's ₹13.1 crore. EBITDA margin expanded from ~18% to ~22% over the same period.
Who is the founder of Garuda Aerospace?
Agnishwar Jayaprakash, an IIT Madras alumnus, founded Garuda Aerospace in Chennai in 2015. He continues to lead the company as CEO and is among the most public-facing drone-industry founders in India.
What is the Garuda Aerospace IPO price band?
The price band has not been announced yet. It will be confirmed in the RHP shortly before the subscription window opens. Bookmark this page for updates within 24 hours of any official price band announcement.
Is Garuda Aerospace a defence company?
Garuda operates across agriculture, defence, industrial and delivery drones. Defence is the fastest-growing segment, while agriculture currently drives the majority of revenue. The IPO offers blended exposure across all four verticals.
Will Garuda be the first listed drone company in India?
Yes — Garuda Aerospace will be India's first pure-play listed drone manufacturer. Existing listed entities with drone exposure (Adani Defence, Bharat Electronics, etc.) treat drones as one product line within a larger defence/electronics business.
Disclaimer: This article is published by ipomarket.in for educational and informational purposes only. It does not constitute investment advice, a recommendation to buy or sell any security, or an offer to invest. IPO and NCD investments are subject to market risks. Grey Market Premium (GMP) data is sourced from unofficial market participants and is not endorsed by SEBI, NSE, or BSE. Past performance is not indicative of future results. Please read all scheme-related documents carefully and consult a SEBI-registered financial advisor before investing. ipomarket.in is not a SEBI-registered investment advisor or research analyst.