DroneAcharya, a BSE SME-listed drone technology company, reported a 65.3% year-on-year decline in net profit for the first half of fiscal year 2026-27 (H1 FY27). According to Inc42, the firm’s bottom line fell to ₹67 lakh, compared to ₹1.9 crore in the same period last year. This result follows a net loss of ₹1.6 crore in the second half of the previous fiscal year.
The company’s operating revenue contracted by 18.3%, dropping to ₹7.82 crore from ₹9.6 crore in H1 FY26. Total income, including ₹1.9 lakh in other income, stood at ₹7.84 crore. Despite the top-line decline, revenue showed a 53.6% sequential improvement from the ₹5.1 crore recorded in the preceding quarter.
DroneAcharya managed to enhance its operational efficiency despite lower sales. The EBITDA margin expanded to 54.7% from 48.2% in the prior year period. Absolute EBITDA fell slightly by 7.3% to ₹4.3 crore, down from ₹4.6 crore in H1 FY26. The company attributed this margin improvement to disciplined cost management, with total expenses decreasing 15.9% year-on-year to ₹6.9 crore.
Specific expenditure categories showed mixed trends. Employee benefit expenses, a key cost driver, fell 13.3% to ₹1.8 crore. Conversely, the cost of materials consumed surged nearly 120% to ₹36.3 lakh, up from ₹16.5 lakh a year ago. Other expenses were cut significantly, falling to ₹1.3 crore from ₹2.6 crore in the previous year.
Founded by Prateek Srivastava in 2017, the company manufactures drones and provides pilot training and mapping services. As Inc42 notes, the firm "manufactures drones" and has expanded into the defence technology sector, producing kamikaze drones with plans to introduce tethered variants. The company’s shares closed at ₹29.25 on the BSE, reflecting a 4.1% decline on the day the report was published.
Investors and analysts will likely monitor whether the cost-cutting strategy can sustain profitability as the company navigates the competitive drone manufacturing landscape. The sharp rise in material costs contrasts with the overall expense reduction, suggesting potential supply chain pressures or strategic inventory builds that may impact future margins.