Ideaforge Technology Ltd Management Discussions

ECONOMIC OVERVIEW

GLOBAL ECONOMY

The global economy is in a period of significant change with a modest growth of 3.3%, amid persistent inflationary challenges due to geopolitical tensions and internal political uncertainty. The global economy is expected to grow by 2.8% in 2025 and 3.0% in 2026, due to higher Indian economic growth, recovering investments in defence, infra & deep tech, stabilizing inflation and easing financial conditions amid ongoing geopolitical and structural shifts. However, rising U.S. tariffs have added to inflationary pressures and reduced consumer spending, contributing to increased economic uncertainty, softer growth, and weaker business and consumer confidence. In response, retaliatory tariffs have intensified trade tensions, disrupted global supply chains, and dampened investor sentiment, further weighing on export-driven growth. Despite these persistent challenges - including market volatility and trade frictions - sustained global growth will rely on continued international cooperation, innovation, and inclusive policy frameworks.

Source: IMF April2025 Report

PIES - April2025Policy Update MOSPI SECOND ADVANCE GDP ESTIMA TES INDIAN ECONOMY

Strong domestic demand, backed by a young workforce and expanding digital infrastructure has led to the emergence of the Indian economy as one of the fastest growing in the world. It grew by 6.5% in FY 2024-25, with Government initiatives like "Make in India", infrastructure development and policy reforms continuing to boost economic growth. Rising urbanization, increasing disposable incomes, and advancements in technology are the key factors shaping consumer markets in India, which, despite global uncertainties, remains a resilient economy with a positive long-term outlook. The Indian economy is expected to grow by the same rate of 6.5% in FY 2025-26.

Source: https://www.Dib.gov.In/PressReleasePage.aspx?PRiD=2132688

DRONE INDUSTRY OVERVIEW

Global Uncrewed Aerial Vehicle (UAV) Industry

While the global drone industry has seen incremental growth in recent years, demand for drones in 2024 did not keep pace with the market potential. Though the global drone industry

attracted US$ 3.3 Billion investment in both 2021 and 2022, funding decreased to US$ 1.7 Billion in 2023.

However, the global drone industry is expected to witness significant growth and widespread adoption across diverse sectors driving a dynamic market landscape. The size of the global drone industry was approximately US$ 30.4 Billion in 2024, with projections indicating substantial expansion through 2033¹. The industry is expected to reach between US$ 75 Billion by 2033, showcasing a compound annual growth rate (CAGR) of 10.4%³. This growth will depend on how quickly key challenges are addressed, such as advancing technology, diversifying supply chains, policy and regulatory changes, and a shift from a hardware based business models to service-based models built on application-specific full stack solutions.

Growth Potential by Drone Application Segments

The defence and public safety segment continue to dominate industry applications with an estimated size of US$ 16.1 Billion in 2024, projected to reach US$ 47.2 Billion by 2032 at a 13.15% CAGR², representing 48.8% of all drone applications by value³. Military drone procurement has increased over the past few years, driven by the demonstrated effectiveness of unmanned systems in recent conflicts. Public safety drone deployments have increased in urban environments, with applications ranging from traffic management to emergency response.

The energy and utilities sector has demonstrated increased adoption of drone technology with increase in pipeline inspection efficiency compared to traditional methods. For example, in the UAE, drones now monitor 12,000 kilometers (km) of critical infrastructure annually. The integration of specialized sensors and thermal imaging capabilities has particularly benefited natural gas infrastructure monitoring.

The construction and infrastructure sectors are also witnessing steady growth. Survey time reduction compared to traditional methods represents a primary value driver, while Building Information Modeling (BIM) integration is improving accuracy in progress tracking. The ability to create digital twins of construction sites has proven particularly valuable for complex projects, reducing costly rework by identifying discrepancies between plans and execution.

Logistics and delivery applications represent one of the fastest-growing segments. Easing and maturing regulatory frameworks will gradually enable commercial logistics through drones at scale, though significant operational restrictions remain in many regions. For example, the current altitude restrictions of 120 meter (m) preclude the use of logistics and mobility drones as they require cruising altitudes of over 500m to 1000m.

Growth Potential by Geographical Region

North America remains the dominant market with approximately 40% global share amounting to US$ 12.2 Billion and steady year-over-year (YoY) growth of 8.4%⁴. Of this, the United States represents the largest individual market at US$ 9.64 Billion, driven by increased adoption across multiple sectors. The industry performance continues to be propelled by advanced regulatory frameworks enabling complex operations, particularly the FAAs incremental expansion of BVLOS approvals for specific corridors and use cases.

The Asia-Pacific region represents a dynamic growth market with India and China leading the regional adoption. Regional growth is driven by manufacturing advantages that leverage integrated supply chains, substantial government incentive programs, and widespread agricultural & military force modernization efforts. Going forward, the Asia-Pacific region is expected to be the fastest-growing in the world during the forecast period (2024-2033), driven by :

¦ Increased drone integration into the military, industrial, agricultural, forestry and energy infrastructure

¦ Expanding demand for consumer drones

¦ New applications in healthcare, law enforcement and emergency response

¦ Advancements in miniaturization

¦ Development of autonomous features

In Europe, Germany, UK, and France represent the primary markets, each with distinct sectoral strengths. Regional performance is benefiting from regulatory

harmonization through U-space implementation, reducing cross-border operational complexities. Environmental

monitoring applications are experiencing particularly strong growth, driven by climate initiatives and precision agriculture requirements.

The Middle East & Africa region, while currently representing the smaller market share, demonstrates high growth. Performance is primarily driven by defence applications, extensive energy sector integration, and adoption in the infrastructure and real estate sector. The regions unique operational challenges, including extreme environments and security concerns, are driving demand for specialized technological development.

New Business Models & Industry Consolidation

Several new Business Models are also emerging as the Drone Industry matures and leverages learnings from the adjacent software industry.

The rise of Drone-as-a-Service (DaaS) represents a significant business model innovation, allowing organizations to access drone technology without heavy upfront investment, need for specialized operations and costly fleet maintenance.

Recent mergers and acquisitions indicate that the drone industry is going through a consolidation phase while the proliferation phase is still going on. Strong private equity reserves and lower interest rates are expected to accelerate industry consolidation, especially in Aerial Logistics and Mobility. ideaForge is also innovating logistics and mobility solutions for Defence which should help monetize deep tech investments in the short term, without waiting for policy & regulatory changes that can accelerate civilian aerial mobility.

Indian Drone Industry

India aims to become a leading global hub for drones by 2030. Aligned with this goal, Indias drone industry with over 270 startups is poised for significant growth, and is projected to reach ^5,000 crore by 2026, depending on growth-oriented policy, investments and regulatory frameworks. However, almost all of them are facing challenges in scaling the business due to

1. Slow conversion of latent demand

2. Unavailability of upfront funding for R&D and scaling & sustaining manufacturing.

3. Regulatory bottlenecks to enable widespread use of drones including BVLOS operations.

The rise in PLI spending for drones and drone components - from INR 33 crore to INR 57 crore within the total outlay of INR 120 crore - reflects the increasing scale of industry participation and adoption. ideaForge, the biggest beneficiary of this scheme received the maximum possible benefit available to a player in the first two years of the scheme itself. A testimony to the success of the PLI scheme as envisioned by the Government of India.

INDIA AIMS TO BECOME A LEADING GLOBAL HUB FOR DRONES BY 2030. ALIGNED WITH THIS GOAL, INDIAS DRONE INDUSTRY WITH OVER 270 STARTUPS IS POISED FOR SIGNIFICANT GROWTH, AND COULD HAVE AN INVESTMENT OF ^5,000 CRORE OVER 3 YEARS.

Indias Directorate General of Civil Aviation (DGCA) has published Drone Rules 2021 and Drone (Amendment) Rules, 2022, which covers drone certification and registration, operational aspects such as altitude limits, drone weight classes, pilot license, etc. DGCA also recently published national guidelines for design and operation of vertiports in 2024, which is seen as a step towards eventual BVLOS operations.

Source: httDs://www.Dwc.in/assets/Ddfs/oDDortunities-in-the-drone-

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OPPORTUNITIES & CHALLENGES

While the global Drone Industry attracted US$ 3.3B+ investment in both 2021 and 2022, the funding decreased to US$1.678B in 2023. But at the same time, global drone utilization - measured by flight count and flight hours and operational metrics, has steadily increased across all regions, with some areas seeing exceptional growth.

This indicates that the challenges need to be weighed against the market potential and multi-stakeholder, multi-pronged approach is required to resolve the challenges and unlock the potential for rapid growth.

Challenges to Rapid Growth in the Sunrise Drone Industry ¦ Demand Deferment in Defence

While our opportunity pipeline showed significant demand potential in FY 2024-25, not enough opportunities were converted into confirmed orders, especially in the Defence Segment. This has an adverse impact because the Indian private defence industry does need continuity of communication and procurement so long-term customer and ecosystem relationships, habits, design knowledge and a manufacturing capability and capacity can be established. The good news is the procurement pace has picked up in the last quarter of FY 2024-25 with Emergency Procurement (EP 5) by the Indian for counter insuregency and counterterrorism (CICT) operations and we are seeing multiple active procurement initiatives across the Defence sector in the first quarter FY 2025-26 also.

With nearly two decades of experience with Defence procurement, ideaForge factors in cyclical demand fluctuations based on extraneous factors. We have a structured process which estimates the total addressable market for the UAVs through unit level sizing, operational

needs and budget availability. All indicators are pointing to increased defence procurement starting first quarter of FY 2025-26.

¦ Demand Forecasting Challenge in Civil including Enterprise

As Gartner states in its Hype Cycle for Mobile Robots and Drones, 2024, we are "approaching the Peak of Inflated Expectations". There is also a scramble to invest in UAV technologies that are expected to deliver benefits over the next 5 to 10 years. However, like any other emerging deep

tech sector, there would still be significant challenges for mass adoption of UAV technology.

The demand we see in the current UAV markets is driven by early adopters that are experimenting with solving specific problems. This is evidenced by the number of feature customization requested across customer segments, including government tenders. Early adopter demand is usually significantly low compared to the market potential once the use cases mature.

¦ Customer Adoption Challenge

There is still a lack of awareness about the efficiency and productivity gains from large scale deployment of UAVs in the Enterprise segment. More conversations need to happen to drive a fundamental shift in mindset from manual to uncrewed aerial operations. This requires concerted effort by the government and the drone industry. Just like the EV industry, significant incentives from the government can help drive new habits, especially in sectors with entrenched infrastructure, traditions and processes. Just like the Drone Didi scheme for the Agricultural sector, policy can drive rapid UAV adoption through regulatory and incentive frameworks.

¦ Absence of Local Supply Chains

Just like the smartphone and consumer electronics industries, the majority of the Indian drone industry is reliant on imports⁵. ideaForge is leading the way here to boost indigenous content through strategic investments and supply chain innovation. However, the industry will still be dependent on foreign suppliers for components such as lithium-ion batteries, semiconductor chips and high-precision sensors in the near term. This exposes the sector to supply chain disruptions and geopolitical risks. While government initiatives like the Production-Linked Incentive (PLI) scheme seek to boost domestic

manufacturing, indigenous production continues to be limited. Due to lack of scale, indigenous subsystems also tend to be more expensive for equivalent specifications.

¦ Policy & Regulatory Challenges

Although drone regulations are evolving globally, uncertainty slows down their widespread adoption. As many of the drone use cases and solutions are brand new, there are limited policies or regulatory frameworks in place. Due to this, certification takes a long time, delaying product launch.

The current focus of the Indian regulatory authorities is to ensure compliance before certification through rigorous testing, including 3^rd party testing. While this is a welcome initiative in the early days of drone technology, as the industry grows, the regulators will have to ensure that the process does not become bottleneck leading to months of delay in product launch. We expect that as the regulatory frameworks mature, the regulators and other government policy makers will move towards trusted public private partnerships that allow manufacturers with a credible track record to move to self-certification/self-declaration.

Rapidly Rising Demand in FY 2025-26

That said, UAV demand is already picking up in the Indian Defence sector in FY 2025-26 and beyond, due to geopolitical exigencies. Changes in Policy & Regulatory frameworks are expected to boost drone adoption across Civil segment use cases. Drone technology is also maturing rapidly despite availability, talent and supply chain challenges. Overall, the drone industry is poised for significant adoption by 2030 and beyond. Market potential forecasts remain high across all sectors, as stated in the previous sections.

As a Business to Government (B2G) and Business to Business (B2B) drone pioneer, ideaForge continues to drive adoption of UAVs for both Defence and Civil applications such as Military, Homeland Security, Law Enforcement, Large Scale Mapping for digital land records, Mining, Forestry, and Enterprise Security & Safety, Inspection of industrial, mining, energy, commercial and storage facilities, ensuring our run rate business continues to grow.

Vision 2030 - Drones as part of baseline security and governance infrastructure

Electric uncrewed aviation is here to stay.

It is on an unstoppable journey of growth and expansion, just like other breakthrough technologies that came before.

A century ago, civil aviation was a fragmented industry built around the dream of human flight - with no standards in place for airplanes, airports, or even business models. Eventually those early air transport solutions overlapped across regions and segments, blended together and transformed into the seamless global air traffic infrastructure that we see today, carrying around 4.5 Billion people annually.

Just a decade ago, electric vehicles (EVs) were perceived as a fragmented industry, with just a few early adopters. Today, EVs represent the fastest growing automotive category, paving the way for seamless charging and standardized infrastructure.

In 2025, the uncrewed aerial solutions (UAS) industry is on a similar trajectory, with promising use cases emerging across a few market segments. Just like the Civil Aviation and EV industries, these early growth stories in UAS are setting the stage for exponential adoption of aerial robotics over the next few years.

By 2030, these UAS solutions will begin to overlap with increasing user adoption, changes in policy, and investments in infrastructure such as vertiports, charging stations, etc.

By 2035, UAS will blend seamlessly into public and private infrastructure, woven directly into the AI-driven fabric of a new, techno-sustainable society.

Driving Decal Growth Through Innovation

ideaForge anticipated a transformative future for electric uncrewed aviation nearly two decades ago and has been actively shaping its journey toward Vision 2030, focused on achieving the right scale and capabilities to capitalize on the decadal growth opportunities ahead.

Preparing for Take Off : Towards Vision 2030

ideaForge is a future forward business investing in all the core equities required to achieve the size and scale of business required for a robust, global UAS company. As a pioneer in the drone industry with 18+ years of experience, ideaForge has a deep understanding of Business Cyclicity, Demand Generation, Customer Adoption and New Opportunity Creation.

Our growth strategy is built on three pillars

Shape the UAS market for Exceptional Customer Success

by solving real user needs in the right segments with Electric Unmanned Aviation, making it the next big area to invest since it combines both EV and AI.

Serve the UAS market through Delivery Excellence

across every customer touchpoint in specific categories and platforms that will always serve a large opportunity space (Quad, Fixed Wing Hybrid VTOL, Tactical and Logistics)

Scale the UAS market by driving Rapid Market Adoption

in categories with the largest market potential by 2030, while understanding that the current opportunity is not yet large enough, and therefore iterating business models from lease finance to Drone as a Service.

Shaping The Market

Driving Exceptional Customer Success by solving for real needs and meaningful use cases across segments and business models

Over the past decade, ideaForge has comprehensively proven the thesis that:

¦ India is a vast crucible of real end user needs, from the coast to snowy mountains

¦ These needs can be solved indigenously with ingenious UAV solutions

¦ Our solutions form a superset that can scale globally for similar target segments

ideaForge has always been a market shaper eventually becoming a market leader.

Over the years, ideaForge created:

¦ the first indigenous autopilot that led to the earliest minidrone ISR applications in India

¦ The first high endurance Fixed Wing Hybrid VTOL, redefining uncrewed border management at the battalion level & even company level

¦ The first survey-grade UAV which was a game changer in digitally mapping Indias under SVAMITVA Scheme

¦ The first Drone as a Service (DaaS), that empowers Law Enforcement Agencies to patrol, respond to emergencies and manage traffic from their mobile phones

¦ The first cloud Platform as a Service (PaaS) to store, manage and analyze data with an analytics marketplace for own and 3rd party plug-ins

¦ The first multi-role tactical UAV in its class, launched at Aero India 2025

Each of these innovations have disrupted the Indian drone industry. They are not just about disruptive technologies, but also about how the technology is delivered to the customers - with the right customer engagement, the right business models and the right go-to market strategies.

ideaForges market shaping approach is less dependent on reactionary trends and focuses on creating new opportunities by understanding the real, latent needs of end users in each segment, and delivering products and services that meet their emerging expectations.

Serving The Market

Driving Delivery Excellence by designing engineering and manufacturing world-class indigenous UAV platforms & solutions.

Investing in Core Equities

Since the Initial Public Offering (IPO), ideaForge has accelerated investments in deep tech innovation with new Product Development and Manufacturing facilities in Bengaluru. We have also made new investments in GalaxEye Space Solutions, an Indian SAR Payload Startup based in Bengaluru, as well as Vantage Robotics, a deep tech drone startup based in Silicon Valley, California.

¦ Differentiated Technologies across hardware, software, data and AI

¦ Full Stack Products & Solutions across segments

¦ Intellectual Property portfolio with 45+ granted patents

¦ Vertically integrated design, engineering, manufacturing and support, and upgrade

¦ Secure, redundant, and indigenised supply chains

¦ Defence and Civil sales and partner networks

¦ Lowest Total Cost of Ownership (TCO)

¦ Best in Class Talent

¦ Multi-location Infrastructure Adoption Through Engagement

ideaForges customer success teams ensure constant customer engagement through demos, training, upgrade offerings, prompt warranty and maintenance support. They conduct service camps in high altitude areas and at the very edge of inaccessible forests.

But thats not the end of it. ideaForges expert pilots are often engaged by customers to fly difficult missions, for, say, patiently hunting down man-eating tigers or other critical security missions.

ideaForge has proven that to build a long-term business, UAV products must be augmented with three critical services.

Scaling the Market

Drive Rapid Market Adoption by identifying categories with the largest market potential by 2030

ideaForges teams are creating opportunities by constantly tracking real end user needs, sizing opportunities, solving problems with the right solutions that get adopted in the long term across new geographies. In the process, new capabilities and new markets lead to new business models and therefore new business diversification such as our nascent Aerial Mobility and Logistics business.

Once they have the right solutions solving real needs, ideaForges Sales team, network of over 100+ partners expand the reach of proven solutions to new customers, markets and geographies. For example, ideaForge recently showcased its UAV technology at the Michigan Uncrewed Triple Challenge, USA, highlighting advanced drone capabilities and strengthening Indias global presence in autonomous drone solutions.

ideaForge has a focused strategy of targeting and building UAV categories with the largest market opportunity by 2030, while understanding that the current opportunity is driven by early adopters and is not large enough.

Based on market potential forecasts and emerging trends, we continue to strongly believe that the following categories will scale. Some of these are brand new and some of them are current categories ideaForge serves.

Within these categories, ideaForge offers the best examples of technology for solving specific end user problems.

Defence & Border Security

The market potential for Drones in the Indian Defence and Border Management is pegged at US$ 21.45 Billion, and the revenue potential is estimated to be US$ 3.56 Billion by 2030.

India is rapidly emerging as a global geopolitical and economic superpower leading to adversary nations increasing their destabilization attempts. From the heat of the desert to the freezing temperatures of the Himalayas, Indian Defence forces are constantly manning the borders against enemy regulars and irregulars. Indias vast borders and coastline present a large opportunity for Uncrewed Surveillance, Intelligence and Tactical Operations.

ideaForge has served the armed forces for over a decade, with significant deployments of advanced UAVs. New demand from the Defence sector expected to ramp up in FY 2025-26. As demonstrated in Operation Sindoor, made-in-India drone systems are increasingly central to national defence strategies, delivering both situational awareness and operational superiority.

Law Enforcement

The market potential by 2030 is forecast at US$ 3.2 Billion and the Serviceable Addressable Market (SAM) is expected to be US$ 646 Million with a CAGR of 53%. As the Indian economy grows, there are threats to the economy due to insurgency, terrorism and widespread unrest. Due to the scale and diversity of terrain from urban to rural to forest areas, UAVs are the ideal asset for law enforcement.

1. Internal Security & Counter Insurgency

i deaForge created technologies offering true line of sight (LOS) capabilities even in deep jungle terrain. As a result, paramilitary and police forces depend on ideaForge UAVs for counterinsurgency, anti-naxal and other critical operations.

2. Coastal Surveillance, Marine Conservation & Fisheries

i deaForge is partnering with state governments ensuring continuous surveillance and enforcement of fishing regulations. For example, the deployment of ideaForge SWITCH drones across seven districts along Maharashtras 720-kilometer coastline improved compliance with fishing rules, reduced IUU fishing, and protected livelihoods, assuring marine sustainability.

3. Rural Law Enforcement, Forest & Wildlife Management

27% of India is covered in forest area. The sheer scale of monitoring, analyzing and managing our forest wealth manually is staggering. ideaForges advanced UAVs and FlyghtCloud aerial data analytics are used for efficient and real-time Forest Management use cases such as wildfires monitoring, wildlife tracking, illegal deforestation, encroachment, afforestation, etc.

4. Urban Law Enforcement

Uttarakhand State Police adopted ideaForges FLYGHT Drone-as-a-Service for fast response time and quick situational awareness during peak hour traffic management and seasonal crowd management. ideaForge Flyght continues to deliver rapid, real-time aerial insights for the scenarios below:

¦ Rapid Response & Visual Assessment in under 3 minutes

ideaForge UAVs equipped with high-resolution cameras provided the Police with real-time assessments of incidents via the FLYGHT mobile app within 2-3 minutes of deployment.

¦ Streamlined Traffic Enforcement: 90% Faster

Managing traffic congestion and enforcing rules necessitated the prompt identification of violators & a seamless penalty-issuing process. ideaForges FLYGHT platform is integrated with Vahan Portal and Police command-control centres, resulting in 90% faster traffic enforcement and enhanced crowd management.

¦ Crowd Management: 100% Coverage

FLYGHTs real-time aerial visuals enables full oversight from the command centre, ensuring 100% coverage for effective crowd management and increased public safety at events and rallies.

¦ Emergency Response:

Police have the ability to automatically dispatch ideaForge UAVs in response to emergency calls.

ideaForge UAVs assist in rapid assessment of fire outbreaks, public disturbances or altercations to ensure effective emergency response.

¦ Data Driven Law Enforcement : Incidents to Insights

ideaForges FlyghtCloud and Flyght solutions empower Police departments to go from Reactive Incident Response to Insights Driven Investigation and Resolution, through integrated operational dashboards in the Command & Control Centres.

Industrial, Enterprise & Infrastructure Management

The market potential by 2030 is forecast at US$ 2.52 Billion and the SAM is expected to be US$ 691 Million with a CAGR of 64%. Large urban clusters have massive construction projects for road, rail and air infrastructure, public amenities, industrial and commercial facilities, energy and telecom infrastructure. Uncrewed aerial systems will be critical for mapping, construction, security and inspection.

ideaForges full stack advanced UAVs, data cloud and analytics provides enhanced surveillance and mapping capabilities, allowing facility managers to swiftly identify threats, reduce reliance on manual patrols, and improve overall safety and efficiency.

For example, State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIIDCUL) has implemented ideaForge UAVs for real-time monitoring and optimized operations.

ideaForges Security & Safety solutions are also seeing rapid adoption by large Enterprises.

A large multi-national food company was looking for a quicker, more adaptable way to improve security monitoring and guarantee adherence on their property. ideaForge UAVs immediately provided significant benefits, lower Total Cost of Operation (TCO):

- quick, real-time, and uninterrupted perimeter and security monitoring including rooftops and chimneys, which was a blind spot before.

- check assets such as vehicles, goods, machinery, etc. to keep an eye on loading yard operations and traffic compliance.

- rapid coverage of large regions of industrial activity with recorded real-time proof, resulting in a significant reduction in cost and time, ensuring traceability and evidence.

"The ability to deploy drones instantly for theft incidents has completely transformed the response times. In one instant, we tracked the theft of 900 liters of fuel, and were able to catch the thieves in less than 40 minutes - a game changer for site security."

- Senior Drone Pilot

Urban & Rural Planning

The market potential by 2030 is forecast at US$ 491 Million and the SAM is expected to be US$ 295 Million with a CAGR of 46%.

Indian cities have been exponentially growing in scale over the past two decades. Municipalities & Metro Area Authorities cannot manage these large urban corridors without automated aerial systems for security, inspection, maintenance and law enforcement.

For example, as Rudrapur in Uttarakhand transforms into a Smart City, the municipal department needed real-time data on the citys services such as transportation, waste management and unlawful encroachments.

They used ideaForge UAVs for over thousands of flight hours flyght hours per month for successful real-time monitoring of waste collection, vehicle routes and encroachment zones. ideaForges solutions streamlined processes through implementation of SOPs and allowed for swift, real-time interventions against illegal activities. The result was enhanced efficiency, accountability and legal enforcement - a proven recipe for a successful Smart City.

Mining & Mineral Management

The market potential by 2030 is forecast at US$ 148 Million and the SAM is expected to be US$ 127 Million with a CAGR of 49%.

Indias mining industry is seeing unprecedented growth⁷ due to increased demand from sectors such as energy, infrastructure, construction, automotive and machinery, growing by 7.5% in just FY 2023-24⁸. Mineral production levels are breaking records that were set in just the previous year. Increased mining scale and activity also requires advanced aerial mapping and inspection techniques for planning and managing mining operations.

Increasing Demand for "Drones as Infrastructure"

Both Government (central and state) as well as Enterprise customers are realizing that procuring drones individually or in small batches is inefficient for most B2B customers as they are not providing data analytics that are integrated into the overall system. Governments and Enterprises are actively deploying strategies for comprehensive drone procurement and SOPs through comprehensive drone as infrastructure strategies driven by both internal agencies and external consulting firms.

ideaForge is among the few global companies with proven experience in scaling drone deployments. With more than 650,000 flights, its platforms are built and tested for reliable, round-the-clock operations throughout the year.

FUTUREPROOF INNOVATION FOR 24/7/365 DEPLOYMENT

Over the past 18 years, ideaForge was shaped for readiness to swiftly meet the demands of conflict scenarios like the recent India-Pakistan tensions. "This is what we were built for," as CEO Ankit Mehta said in a recent interview with NDTV Profit. ideaForges deep tech, full-stack platforms are a testimony to its long-standing focus on defence-grade performance, multi-payload capability, field upgradable intelligence, resilience against Electronic Warfare and mission-critical reliability. With deep operational experience, these platforms are ideal for addressing the large market potential that will propel the global drone industry forward.

FINANCIAL OVERVIEW

Given the importance of financial metrics in business evaluation, ideaForge focuses on innovation and intellectual property creation rather than simply relying on external technology acquisition. Coupled with the product development pipeline, technology roadmap, intellectual property portfolio, and overall business strategy, this approach further accentuates the significance of the financial metrics as indicators of the Companys past performance and future growth potential.

Financial Performance FY 2024-25 Consolidated

(INR Mn)

Particulars	FY 2024-25 H	FY 2023-24
Total Revenue	1,824	3,444
EBITDA	-315	859
EBITDA Margin (%)	-20%	27%
Profit Before Tax (PBT)	-624	611
Tax	-1	158
Profit After Tax (PAT)	-623	453
PAT Margin (%)	-39%	14%
Total Comprehensive Income	-625	450

Standalone

(INR Mn)

Particulars	FY 2024-25	FY 2023-24
Total Revenue	1,872	3,474
EBITDA	-216	893
EBITDA Margin (%)	-13	28%
Profit Before Tax (PBT)	-524	645
Tax	-11	167
Profit After Tax (PAT)	-513	478
PAT Margin (%)	-31	15%
Total Comprehensive Income	-517	476

Key Financial Ratios (On Standalone Basis)

Particulars	FY 2024-25		FY 2023-24	% Change
Operating Profit Margin (%)	33%	50%	-33%	_
Net Profit Margin (%)	-31%	15%	-305%
Debtors Turnover Ratio	3.10	6.03	-49%	_
Current Ratio	8.59	8.69	-1%
Inventory Turnover Ratio	1.18	1.57	-25%
Interest Coverage Ratio	-21.28	16.14	-232%	_
Debt Equity Ratio	-	-	-	_

OUTLOOK

The drone industry is witnessing strong growth within India and globally. The key factors driving the UAV demand growth in India include emerging technologies, growing export opportunities, and government support for domestic product development and manufacturing. ideaForge is well-positioned to capitalize on these domestic opportunities while maximizing the growth prospects in the international markets backed by its robust Intellectual Property (IP), diverse product portfolio and esteemed customer base. With a strong growth trajectory, the Company remains confident in its ability to drive sustainable expansion in the future.

ideaForges future focus is on deepening its market penetration while leveraging the emerging and existing opportunities in the defence sector. Aligned with this approach, it is advancing in unmanned logistics and mobility for defence and civil use while enhancing its Intelligence, Surveillance and Reconnaissance (ISR) capabilities. It is concurrently focused on developing innovative solutions in collaboration with government and enterprise partners.

The Companys efforts, going forward, will continue to be centered around maximizing the revenue potential across various channels and geographies. It will take targeted initiatives to develop the DaaS model, expand its business services, and enable on-demand drone deployment for seamless mission execution. ideaForges recently launched FLYGHT franchise, which extends beyond operational and financial benefits, will allow franchisees to explore diverse use cases across sectors, such as traffic and parking management, security solutions, city planning, emergency response, and outdoor inventory management. Its strong market presence and robust pipeline of product innovations is expected to help the Company

drive profitability and accelerate growth in the coming years. The focus, going forward, will remain on expansion of the product portfolio, strengthening of the domestic and global footprint, and augmentation of exports, particularly in North America.

RISK MANAGEMENT

As a future-centric organization, ideaForge has implemented a structured risk management framework to ensure the timely identification, assessment and mitigation of key business and operational risks. The following are the key risks, along with their corresponding mitigation measures: