Friday, January 23
Shares of ideaForge Technologies were in focus on Friday after the company reported its Q3 FY26 financial results after market hours on Thursday, with investors assessing strong year-on-year revenue growth against widening losses and margin pressure.
For the December quarter, ideaForge reported revenue of Rs 31.54 crore, marking a 79% year-on-year increase. However, the topline declined on a sequential basis. Around 12% of the revenue came from the defence segment, while the remaining contribution was from civil orders.
Despite the sharp rise in revenue, profitability deteriorated during the quarter. The company’s EBITDA loss widened to Rs 24 crore, nearly doubling from Rs 13 crore in the year-ago period. On a quarter-on-quarter basis, the EBITDA loss almost tripled from Rs 7.99 crore reported in Q2 FY26.
The pressure on operating performance was reflected at the bottom line as well. Net loss widened to Rs 33.85 crore in Q3 FY26, compared with a loss of Rs 24.02 crore in the same quarter last year and Rs 19.62 crore in the previous quarter.
The company attributed the widening losses primarily to significantly higher material costs, which rose to 76% of total sales during the quarter, up from 49% in the September quarter and 54% in Q3 FY25. This led to a sharp gross margin contraction of over 2,200 basis points, with margins falling to 23.7% from 46% a year earlier and 50% in the previous quarter.
On the order front, ideaForge reported a sharp improvement in its pipeline. The order book stood at Rs 350.8 crore at the end of December, compared with Rs 164 crore at the end of September. The order backlog increased to Rs 440 crore, the highest level for the year.
The company stated that it plans to execute 40% to 45% of the open order book in Q4 FY26 and is aiming to improve gross margins going ahead, according to its disclosure.
Market reaction on Friday reflected a mix of positives from revenue growth and order inflows, weighed against concerns over widening losses, margin compression, and rising costs following the Q3 earnings announcement.
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