Garuda Aerospace Confidentially Files for ₹1,000 Crore IPO: Dhoni-Backed Drone Startup Targets Defence and Global Markets
When a drone startup backed by one of India’s most beloved cricketers confidentially files for an initial public offering, the market takes notice. When that same startup has evolved from spraying pesticides on farms to building surveillance systems for the Indian Army, the attention is warranted.
Garuda Aerospace, the Chennai-based drone manufacturer supported by MS Dhoni, has pre-filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) . The company aims to raise approximately ₹1,000 crore through the public offering, comprising a fresh issue of up to ₹750 crore and an offer-for-sale (OFS) component of an undisclosed amount .
This filing marks a significant milestone not just for Garuda, but for India’s defence-tech and deep-tech ecosystem—signalling that startups building hardware for strategic sectors are now being recognised as viable public market players.
The Numbers: A ₹1,000 Crore Bet on Drone Technology
The IPO structure reflects Garuda’s need for growth capital to fund its ambitious expansion plans.
The stock split is a strategic move to enhance liquidity and make shares more accessible to retail investors ahead of the listing . The company has also added independent directors to its board to strengthen governance, a preparatory step for public market scrutiny .
The Financial Story: Profitable Growth in a Capital-Intensive Industry
Garuda’s financial trajectory demonstrates that hardware startups can achieve profitability even as they scale.
| Period | Revenue | Profit After Tax |
|---|---|---|
| FY25 (Full Year) | ₹118–123.5 crore | ₹17.5–18.4 crore |
| H1 FY26 (Six Months) | ₹41.2 crore | ₹11 crore |
The company’s operating revenue grew approximately 12% year-on-year in FY25, while net profit rose 41%—demonstrating improving operational leverage . For FY26, the company has set an aggressive target of ₹365 crore in revenue, pointing to significant growth backed by expanding manufacturing capacity and export ambitions .
From Agriculture to Defence: The Evolution of Garuda Aerospace
Garuda Aerospace was founded in 2015 by Agnishwar Jayaprakash and Rithika Mohan . The company’s initial focus was on agricultural drones, driven by government demand for precision farming solutions. That focus has since broadened dramatically.
The Agri-Drone Foundation
- The company holds approximately 30% of India’s agricultural drone market
- Its fleet of agri-drones has logged over 1 million flight hours
- Garuda has trained over one lakh drone pilots and holds DGCA approvals for type certification
The Defence Expansion
Today, Garuda manufactures more than 30 types of drones and offers over 50 services across sectors including defence, surveillance, logistics, industrial inspection, and precision agriculture . The company currently produces around 15 defence drones and has partnered with Bharat Electronics to jointly design and develop unmanned aerial systems for the armed forces .
In August 2025, Garuda launched five new UAV platforms, including:
- Swarm drones for coordinated battlefield operations
- Canister-dropping drones for tactical logistics
- High-altitude rescue drones for emergency response
The Strategic Imperative: Drone Warfare Economics
The timing of Garuda’s IPO filing is not coincidental. As the Times of India report notes, the company is capitalising on “rising interest in drone warfare amid the recent Iran conflict” .
The economics of modern combat have shifted dramatically. Iran’s reported $30,000 Shahed drones have altered cost calculations for military planners worldwide . Unlike fighter jets costing hundreds of millions of dollars, drones offer a cost-effective alternative for surveillance, precision strikes, and force multiplication.
This shift is not lost on Indian defence planners. The Indian Army has engaged Garuda for “special missions by detecting, deterring, and disrupting transnational organised criminal networks” . The company is also developing a dedicated 76-acre defence park at Cheyyur for research, testing, and development of precision strike drone systems .
The Airbus Flexrotor Partnership: Going Global
In a landmark deal announced in March 2026, Garuda signed a contract with Airbus Helicopters for the delivery of up to 18 Flexrotor uncrewed aerial systems (UAS) .
The Flexrotor is a 25-kilogram, vertical take-off and landing (VTOL) UAS designed for intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) missions lasting more than 12 to 14 hours . It can launch and recover autonomously from land or sea within a 3.7-by-3.7 metre area and can be deployed from stowed to airborne in under 30 minutes .
“Having manufactured and sold over 5,000 drones and served more than 500 enterprise and government clients globally, we are now scaling our range of services and upgrading our global product portfolio,” said Agnishwar Jayaprakash, Founder and CEO of Garuda .
The Flexrotor will be offered through Garuda Technologies Inc. , the company’s Delaware-based wholly owned subsidiary, expanding its North American leasing operations for missions including infrastructure inspection, law enforcement, search and rescue, wildfire monitoring, and disaster relief .
The Dhoni Factor: Celebrity Backing and Credibility
MS Dhoni’s association with Garuda extends beyond brand ambassadorship. The former Indian cricket captain, who holds an honorary rank of Lieutenant Colonel in the Parachute Regiment of the Indian Territorial Army, has become a shareholder in the company and has increased his stake over time .
Dhoni has also been personally involved in product launches, including the consumer camera drone branded “Droni” . His dual identity—cricket legend and army officer—aligns perfectly with Garuda’s brand positioning across both commercial and defence applications.
As one industry observer noted, Dhoni’s backing provides not just capital but credibility—particularly in the defence sector, where trust and reliability are paramount.
Global Partnerships: Thales, Lockheed Martin, and Tata Elxsi
Garuda has built an impressive roster of global partnerships that validate its technological capabilities:
- Thales (French aerospace and defence giant)
- Lockheed Martin (US defence major)
- Airbus Helicopters (European aerospace leader)
- Bharat Electronics (Indian defence PSU)
- Tata Elxsi (design and technology services)
These partnerships cover joint design and development of UAV systems, technology transfer, and access to global supply chains. They also position Garuda as a potential gateway for international defence companies seeking to comply with India’s offset requirements and “Make in India” mandates.
The Market Opportunity: India’s Drone Revolution
India’s drone market is at an inflection point. Government initiatives—including the Drone Shakti Scheme, the Production-Linked Incentive (PLI) Scheme for Drones, and the liberalised Drone Rules 2021—have created a fertile environment for domestic manufacturers .
Key drivers of market growth include:
- Agriculture: Precision farming, crop monitoring, pesticide spraying
- Defence: Surveillance, reconnaissance, loitering munitions, logistics
- Infrastructure: Mining surveys, pipeline monitoring, construction inspection
- Logistics: Payload delivery for e-commerce and medical supplies
- Disaster Management: Search and rescue, damage assessment, relief supply delivery
Garuda has already demonstrated its capabilities across these verticals. The company has secured contracts from the governments of Gujarat, Tamil Nadu, and Jharkhand for AI-powered drone services, including mining surveys and database creation . It has also been engaged by the Varanasi Smart City for medicine delivery trials and by Bengaluru hospitals for sanitisation operations .
The Road Ahead: From Pre-Filing to Listing
Garuda’s confidential DRHP filing is a significant step, but the path to listing involves several milestones:
- SEBI Review: The regulator will review the confidential DRHP and provide observations
- Public Filing: Once SEBI clearance is obtained, the DRHP will be made public
- Roadshows: Management will meet institutional investors to gauge demand
- Price Band Determination: Final pricing will be set based on market conditions
- Listing: Shares will debut on NSE and BSE, expected by late 2026
The company’s first-mover advantage in India’s defence-drone space, combined with its profitability track record and global partnerships, positions it favourably for a successful public debut.
What This Means for India’s Defence-Tech Ecosystem
Garuda’s IPO carries several important signals for India’s startup ecosystem:
1. Defence-Tech Is No Longer Off-Limits to Private Capital
For decades, defence was the exclusive domain of public sector undertakings. Garuda’s journey demonstrates that private startups can build world-class defence technologies and attract public market investment.
2. Hardware Startups Can Achieve Profitability
Unlike software startups that often burn cash for years, Garuda has demonstrated that hardware companies can grow profitably—an important signal for investors who have been wary of capital-intensive models.
3. Export Ambitions Are Real
With export clearances to markets including the US, Australia, and the Middle East, Garuda is positioning itself as a global player . The company’s expansion into North America through its Delaware subsidiary demonstrates that Indian drone technology can compete internationally.
4. A Template for Other Deep-Tech Startups
Garuda’s successful navigation from agri-tech to defence, from domestic to global markets, and from private to public ownership provides a template for other Indian deep-tech startups in sectors such as space, semiconductors, and advanced manufacturing.
The Final Word
Garuda Aerospace’s confidential filing for a ₹1,000 crore IPO is a watershed moment for India’s defence-tech ecosystem. It signals that investors are ready to back companies building hardware for strategic sectors, that profitability is achievable even in capital-intensive industries, and that Indian drone technology can compete on the global stage.
With MS Dhoni’s backing, a growing roster of global partnerships, and a clear strategic focus on defence applications, Garuda is well-positioned to become the first major drone-tech public listing in India. If successful, it could open the floodgates for other deep-tech startups to follow—strengthening India’s self-reliance in critical technologies and positioning the country as a serious player in the global drone economy.
