By IPOMarket Editorial Team · Last reviewed: May 22, 2026
Disclaimer: This article is for informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Please read the offer document carefully and consult a SEBI-registered investment advisor before investing.
Garuda Aerospace — the Chennai-based drone manufacturer backed by MS Dhoni — has formally entered the public-market pipeline. The company pre-filed its Draft Red Herring Prospectus (DRHP) with SEBI on April 7, 2026, structuring the issue as a fresh issue of up to ₹750 crore plus an offer-for-sale of undisclosed size — total raise targeted at approximately ₹1,000 crore at a ₹4,000-5,000 crore valuation. The expected listing window is December 2026, and Garuda will become India's first pure-play listed drone manufacturer.
This review covers the IPO mechanics, business profile, financial trajectory, the MS Dhoni and BEL angles, regulatory tailwinds, key risks and a decision framework. For broader pipeline context, see our upcoming IPOs 2026 list and the live IPO GMP page.
Garuda Aerospace IPO — Key Details at a Glance
| Parameter | Details |
|---|---|
| Company | Garuda Aerospace Pvt. Ltd. (converted to public company Dec 2025) |
| DRHP Filed | April 7, 2026 (pre-filing route) |
| Fresh Issue | Up to ₹750 crore |
| OFS | Undisclosed size |
| Total Target Raise | ~₹1,000 crore |
| Target Valuation | ₹4,000-5,000 crore |
| Previous Valuation | $270 million (August 2025) |
| Total Funding Raised (Pre-IPO) | ~$49.5 million across 9 rounds |
| Expected Listing | December 2026 |
| Stock Split | 1:5 (₹10 → ₹2 face value, approved) |
| Lead Managers | IIFL Capital, Axis Capital, ICICI Securities, SBI Capital |
| Founder & CEO | Agnishwar Jayaprakash |
| Founded | 2015 (Chennai) |
| FY25 Revenue | ₹118-125 crore |
| FY25 PAT | ₹17-20 crore |
| FY24 Revenue | ₹109 crore |
| FY24 PAT | ₹15.8 crore |
| Drone Fleet | 400+ drones, 30 models, 50 services |
| Mfg Capacity | 15,000 drones/year (target: 50,000) |
| Listing Exchanges | NSE + BSE Mainboard |
| GMP Today | Live IPO GMP → |
| Allotment | IPO allotment calculator → |
DRHP Filed April 7, 2026 — December Listing Target
Garuda filed its DRHP with SEBI on April 7, 2026 via the pre-filing route. The company converted from private limited to a public company in December 2025 — a standard pre-IPO governance step. The board has also approved a 1:5 stock split (face value reduced from ₹10 to ₹2) to make post-listing per-share affordability and retail liquidity more accessible.
The lead managers are a heavyweight bookrunning syndicate: IIFL Capital, Axis Capital, ICICI Securities and SBI Capital — a four-banker setup typical of larger mainboard IPOs.
About Garuda Aerospace — India's First Pure-Play Listed Drone Maker
Garuda was founded in 2015 by Agnishwar Jayaprakash — a former competitive swimmer turned drone entrepreneur. From Chennai, the company has scaled into India's largest drone manufacturer by fleet size, operating across four verticals:
- Agriculture (Kisan drones). Crop spraying drones deployed under the PM-KISAN drone subsidy programme across Telangana, Maharashtra, Karnataka and Punjab. The largest revenue contributor.
- Defence. Surveillance UAVs and loitering munitions for the Indian Army, paramilitary forces and DRDO programmes. Beneficiary of Atmanirbhar Bharat defence indigenisation and the iDEX (Innovations for Defence Excellence) framework.
- Industrial. Pipeline inspection, power transmission line monitoring and infrastructure surveys for ONGC, NTPC, Power Grid and EPC contractors.
- Logistics. Last-mile drone delivery corridors piloted in Telangana, Tamil Nadu and Gujarat in partnership with state governments and the Ministry of Civil Aviation.
The current operational footprint is 400+ drones in fleet, 30 drone models, 50 services, and a manufacturing capacity of 15,000 drones per year — with a stated target of scaling to 50,000 drones per year post-IPO.
The MS Dhoni Angle and BEL MoU
Two strategic relationships shape the Garuda narrative:
- MS Dhoni — Strategic Investor and Brand Ambassador. Dhoni's investment and brand association is one of the most-watched celebrity-investor stories in Indian startup history. His involvement provides both capital and unparalleled media leverage for a category that benefits enormously from public attention.
- BEL MoU (January 2026). Garuda signed a Memorandum of Understanding with Bharat Electronics Limited (BEL) — the listed defence PSU — for joint defence drone development. The MoU was announced with MS Dhoni's public backing, signalling the depth of the Garuda-defence-ecosystem relationship.
Other major investors include Venture Catalysts (which led a ₹100 crore Series B), We Founder Circle, and the Narotam Sekhsaria Family Office.
Financial Performance — Profitable and Growing
| Metric | FY24 | FY25 | YoY |
|---|---|---|---|
| Revenue (₹ Cr) | 109 | 118-125 | +7-15% |
| PAT (₹ Cr) | 15.8 | 17-20 | +8-27% |
| EBITDA Margin (approx) | ~18% | ~22% | +400 bps |
Garuda is profitable at the consolidated level — a rare and important differentiator versus loss-making startup peers entering the IPO market. PAT grew from ₹15.8 crore in FY24 to ₹17-20 crore in FY25, with EBITDA margin expanding from ~18% to ~22% as fleet utilisation rose.
The financial profile is materially better than typical pre-IPO Indian deep-tech / defence-tech companies — most of which list at loss-making stages or at much earlier revenue scales.
Indian Drone Market — Structural Tailwinds
The Indian drone market is in the middle of a multi-year structural expansion:
- Market size: ₹57 billion in 2024 → ₹123 billion projected by 2029 (more than 2x in 5 years).
- Policy tailwinds: Drone Rules 2021, PLI scheme for drones (₹120 crore incentive pool with extension under negotiation), Atmanirbhar Bharat defence indigenisation (30% of defence capital budget mandated for domestic procurement).
- PM-KISAN drone subsidy: Up to 80% subsidy for drones used by farmers, FPOs and custom hiring centres.
- Defence indigenisation: Border surveillance, anti-drone systems and loitering munitions are priority categories under iDEX.
Garuda would be the third pure-play drone IPO in Indian markets after DroneAcharya (2022) and IdeaForge (2023) — making it the only large-scale, profitable drone-IPO comparable available to public-market investors.
Use of IPO Proceeds
Based on the DRHP filing, the ₹750 crore fresh issue will be deployed toward:
- Manufacturing capacity expansion — scaling from 15,000 to 50,000 drones per year.
- R&D and product development — new defence drone variants, autonomous flight and AI-led navigation.
- Working capital — supporting longer government contract payment cycles.
- Acquisitions of complementary technology stacks (specific targets to be disclosed in UDRHP).
- General corporate purposes and issue expenses.
Strengths
- First-mover listing premium. No listed pure-play Indian drone manufacturer at Garuda's scale.
- Profitability with growth. FY25 PAT of ₹17-20 Cr on revenue of ₹118-125 Cr — rare for an Indian deep-tech IPO candidate.
- MS Dhoni anchor and BEL MoU. Brand visibility and defence-ecosystem credibility that money can't replicate.
- Diversified revenue base. Agriculture + defence + industrial + delivery — four verticals smooth single-segment cyclicality.
- Regulatory tailwinds. PLI, PM-KISAN subsidy, iDEX, Drone Rules 2021 — multiple concurrent policy tailwinds.
- Heavyweight bookrunning syndicate. IIFL + Axis + ICICI + SBI Capital signals execution confidence.
Risks
- Revenue concentration on government contracts. Defence and agriculture revenue depends on government procurement — payment cycles can stretch beyond 180 days.
- Small revenue base vs target valuation. ₹125 Cr FY25 revenue against a ₹4,000-5,000 Cr target valuation implies aggressive sales multiples (~32-40x). This is a growth story, not a value play.
- Policy dependence. PLI extension and subsidy continuity are not guaranteed beyond announced windows.
- Technology evolution risk. Global drone capabilities (notably DJI in civilian, US/Israeli players in defence) are advancing fast — Indian manufacturing must keep pace.
- OFS overhang. OFS size undisclosed as of DRHP — final size will affect post-listing stock supply.
Should You Apply?
The decision framework rests on three balancing factors:
- For. First-mover defence-drone listing, profitability with growth, MS Dhoni / BEL anchor, multi-policy-tailwind exposure, and heavyweight banker syndicate.
- Against. Aggressive valuation multiples (~32-40x sales), government contract concentration, and policy-extension dependence.
- Neutral. OFS size and final price band remain undisclosed until the UDRHP — both are critical decision inputs.
For investors with thematic conviction on Indian defence indigenisation and the drone-PLI tailwind, Garuda is the only pure-play vehicle expected to list in 2026. Treat this as a 3-5 year growth story, not a listing-day trade. Track Day 1-3 subscription on the open IPOs page and the anchor investor list (defence-focused mutual funds and FPIs would be strong signals) once announced.
For an investor's grounding on the IPO process, see our introduction to IPOs. For sizing, use the allotment calculator.
Frequently Asked Questions
When did Garuda Aerospace file its DRHP? Garuda filed its DRHP with SEBI on April 7, 2026 via the pre-filing route. The expected listing window is December 2026.
What is the Garuda Aerospace IPO size? The structure is a fresh issue of up to ₹750 crore plus an undisclosed-size OFS — total raise targeted at approximately ₹1,000 crore at a ₹4,000-5,000 crore valuation.
Is MS Dhoni an investor in Garuda Aerospace? Yes — MS Dhoni is a strategic investor and brand ambassador for Garuda. He was publicly associated with the BEL MoU signed in January 2026 for joint defence drone development.
Is Garuda Aerospace profitable? Yes — Garuda reported PAT of ₹17-20 crore on revenue of ₹118-125 crore in FY25, up from ₹15.8 Cr PAT on ₹109 Cr revenue in FY24. EBITDA margin expanded from ~18% to ~22%.
Will Garuda be the first listed drone company in India? Garuda will be the third pure-play drone listing after DroneAcharya (2022) and IdeaForge (2023) — and the largest profitable Indian drone-IPO comparable.
Who founded Garuda Aerospace? Agnishwar Jayaprakash — a former competitive swimmer turned drone entrepreneur — founded Garuda Aerospace in 2015 in Chennai. He continues as CEO.
What is the Garuda Aerospace IPO price band? The price band has not been announced. It will be confirmed in the UDRHP shortly before the subscription window opens (expected December 2026).
Last reviewed: May 22, 2026 by IPOMarket Editorial Team. We update this article as Garuda Aerospace progresses to UDRHP, anchor allocation and listing.