Garuda Reports Impressive FY23 Performance: Revenue Surges 3X with Profitable Growth

Garuda Reports Impressive FY23 Performance: Revenue Surges 3X with Profitable Growth

Garuda Aerospace, a drone startup based in Chennai, has reported impressive growth in its operating income. After achieving profitability and a significant increase in scale in FY22, the company expects to close FY23 with over 200% growth in operating income.

During FY22, Garuda Aerospace recorded a remarkable surge in operating revenue, reaching Rs 15.31 crore, which was a 7.2X increase compared to the previous fiscal year. Building on this momentum, the company continued its growth trajectory and achieved a revenue of Rs 46.8 crore during FY23.

These impressive financial results highlight Garuda Aerospace’s strong performance in the drone industry and its ability to capitalize on the growing demand for drone services.

Garuda Aerospace, founded in 2015 by Agnishwar Jayaprakash, operates as a drone-as-a-service (DaaS) startup. The company specializes in designing, manufacturing, and customizing Unmanned Aerial Vehicles (UAVs) or drones for a wide range of applications, including deliveries, disaster management, agriculture, and more.

It generates revenue through various sources. One of its revenue streams is surveillance charges and related operating services, where the company provides drone-based surveillance solutions to clients. Additionally, the company generates revenue through the sale of drones and related accessories.

The combination of offering drone services and selling drones and accessories allows the company to capture value from both service-based contracts and product sales, contributing to its revenue growth and overall business success.

According to Garuda Aerospace’s website, the company manufactures a diverse range of 30 types of drones, catering to various industries and use cases. These drones are designed to meet specific requirements and applications, such as surveillance, aerial photography, agriculture, delivery, and more.

In addition to drone manufacturing, it also offers an extensive range of 50 types of services. These services encompass different aspects of drone operations, including aerial surveys, surveillance and security, industrial inspections, mapping and surveying, crop monitoring, disaster management, and many others.

With its wide range of drones and services, the company has served over 750 clients, which include notable names such as TATA, Godrej, Adani, Reliance, Swiggy, Flipkart, and others. These clients span various industries, indicating the company’s ability to cater to diverse business needs and establish itself as a trusted provider of drone solutions in the market.

Garuda Aerospace’s financial performance has shown significant improvement over the years. In FY21, the company reported a loss of Rs 53 lakh. However, it managed to turn its fortunes around and achieved profitability in the following fiscal years.

During FY22, Garuda recorded a profit of Rs 3.63 crore, and in FY23, it further increased its profitability with a profit of Rs 3.9 crore. This represents a growth of 7.4% in profit from the previous fiscal year.

The company’s ability to maintain profitability while experiencing rapid growth in scale is a positive sign for its financial health and sustainability. It showcases it’s successful execution of its business strategies and efficient management of its operations.

Garuda Aerospace has set ambitious targets for the current financial year, aiming to achieve a significant jump in revenue. The company plans to close FY24 with a revenue of Rs 400 crore, which represents a 10X increase compared to the previous fiscal year.

To support its growth plans and expansion efforts, Garuda successfully raised a substantial amount of funding in its Series A round in February. The funding round was the largest in the drone industry, and it has contributed to the company’s current valuation of $250 million.

Looking ahead, Garuda intends to raise additional funds through a Series B round. The company is aiming to secure $50-70 million in funding, which would value the company at $300-400 million. With these investments, Garuda aims to become the first drone unicorn in the industry by 2024, highlighting its ambition to become a highly valued and successful player in the drone space.

Garuda Aerospace has been successful in raising $24 million in funding to support its growth and expansion plans. Notably, former Indian cricket team captain Mahendra Singh Dhoni has made investments in the company and serves as its brand ambassador.

The company has also received a substantial number of pre-bookings for its drones, with over 9,000 orders in its backlog. This makes it the leading drone company in India in terms of order volume. These pre-bookings indicate strong demand for Garuda’s products and point to potential revenues worth more than Rs 300 crore. The company expects to realize these revenues in the coming year, with a healthy profit margin of 26%.

This positive outlook further reinforces Garuda Aerospace’s position in the market and highlights its potential for continued growth and success in the drone industry.

Garuda Aerospace has achieved significant milestones in the drone industry, including securing a substantial order of 400 Agri Kisan Drones from Indian Farmers Fertilizer Cooperative Limited (IFFCO). This order has contributed to Garuda’s growing order book, which now stands at 10,000 drones for the year. Additionally, the company has obtained dual certification from the Directorate General of Civil Aviation (DGCA) for its Garuda Kisan Drone, enhancing its credibility and market position.

In the competitive landscape, Garuda Aerospace faces competition from other players such as Skyroot Aerospace, Bellatrix Aerospace, and ideaForge. However, with its strong order book and market focus, Garuda is well-positioned for success in the drone industry.

The drone market in India is currently experiencing favorable policy support, creating growth opportunities. While the defense sector is a significant market segment, Garuda has chosen to focus on other sectors. With a healthy order book and promising prospects, the company has a positive outlook.

One key challenge for drone players in India is the dependence on imports, particularly from China. Restrictions on technology transfer and the export of critical minerals can disrupt the supply chain. It remains to be seen how well Indian drone sellers, including Garuda, have mitigated this risk and built resilience against such disruptions.