Droneacharya Aerial Innovations Ltd Management Discussions

The global drone industry is experiencing unprecedented growth, driven by advancements in autonomous systems, AI-powered analytics, and versatile aerial platforms. Market projections indicate that the industry could reach USD 90 billion by 2030 , highlighting the massive potential for innovation, investment, and commercial adoption worldwide. With applications spanning defense, agriculture, logistics, infrastructure, and enterprise solutions, drones are rapidly evolving from niche technologies into mainstream tools for business and government operations.

In India, the drone ecosystem is poised for rapid expansion, fueled by supportive government policies, defense modernization initiatives, and increasing adoption of precision agriculture and industrial applications. Regulatory reforms, such as DGCA certifications, GST reductions, and the Emergency Procurement Fund for defense drones , are enabling faster deployment, encouraging domestic manufacturing, and facilitating public-private collaborations. These developments create a fertile environment for Indian drone companies to innovate and scale both nationally and internationally.

The Indian drone sector presents significant opportunities across manufacturing, services, and training . Manufacturing is witnessing a shift toward high-performance, indigenously developed drones capable of operating in challenging terrains and diverse climates. Drone services, including mapping, surveying, and warehouse management, are becoming increasingly sophisticated and integrated with AI-driven data analytics. Simultaneously, drone training and skill development are critical to building a competent workforce, ensuring safe operations, and supporting the broader ecosystems growth.

DroneAcharya is strategically positioned to capitalize on these trends . With expertise spanning pilot training, product innovation, defense applications, and enterprise solutions, the company is uniquely equipped to address Indias growing drone demand. By leveraging its strong R&D capabilities, DGCA-certified training programs, and international collaborations, DroneAcharya is well-placed to not only capture emerging opportunities in the domestic market but also expand its footprint globally, contributing to Indias vision of becoming a leading drone hub.

2.Financial Performance

Overview

We closed the Financial Year 2024?€“25 with total revenue of 36.7 Crores , marking another year of steady growth. FY 2024?€“25 has been declared the "Year of Innovation" , driven by significant product launches, defence trials, global partnerships, and training milestones. Despite near-term financial pressures, DroneAcharya continues its trajectory as a leading Drone Solution Provider and DGCA-certified Drone Pilot Training Organization , pioneering drone skill development in Indias private sector. The Company has made notable strides in expanding its international footprint, securing multiple overseas drone service projects, forging industrial collaborations with drone manufacturers, investing in drone-centric companies, and pursuing acquisitions of strategic value-adding firms both in India and globally.

Financial summary based on Standalone Financials:

Financial Summary based on Consolidated Financials ( in Lakhs, except EPS):

Audit Report

The Statutory Auditor has issued an unmodified opinion on both standalone and consolidated financial results for FY 2024?€“25. The financial statements have been prepared in accordance with Indian Accounting Standards (IND-AS) and other regulatory requirements, ensuring a true and fair view of the Companys performance. The Auditors Report also highlights the ongoing SEBI enquiry, for which the Company has provided necessary clarifications; no financial impact has been recognized at present.

3. Outlook

While FY 2024-25 presented operational and financial challenges, the management remains optimistic about the Companys medium- to long-term prospects. DroneAcharyas investments in R&D, product diversification, and international expansion are expected to position the Company favorably in the coming years. With strong policy support, increasing adoption of drones across industries, and growing export potential, the Company is confident of restoring profitability and achieving sustainable growth in FY 2025-26 and beyond.

4. Internal Control Systems and Adequacy

The Company has adequate internal control systems commensurate with its size and nature of operations. These systems ensure accuracy in financial reporting, safeguard assets, and promote operational efficiency. During the year, the management further strengthened compliance processes and internal audits to support transparent governance.

5. Material development in Human Resource:

DroneAcharya recognizes that its employees are key to its success. The Company continues to foster a culture of innovation, collaboration, and continuous learning. Various initiatives were undertaken to enhance skill development, employee engagement, and safety. The company has also designed a succession plan to prevent sudden loss of experience and expertise, to mitigate the risk of decreased efficiency, productivity, and quality of work.

6. Conclusion

FY 2024-25 was a year of reflection and realignment for DroneAcharya. The Company acknowledges the challenges faced during the year but remains confident in its ability to emerge stronger. With strategic initiatives underway, a diversified product portfolio, and a dedicated management team, DroneAcharya is well-positioned to capitalize on future opportunities in the rapidly evolving drone industry.

7. Cautionary Statement:

Statements in the management discussions and analysis section describing the companys projections, estimations, expectations and predictions may be forward-looking statements within the meaning of applicable securities, laws and regulations. Actual results could differ materially from the expressed or implied ones. Important factors that would make a difference in the companys operations include demand-supply conditions, input costs escalations, changes in government regulations and tax regimes, competition, economic developments within and outside the country etc.