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The Opening · Unlisted Equity

The drone-maker that can fly, but can't yet scale

Gamma Rotors Limited — an indigenous UAV / drone OEM serving India's defence, paramilitary and homeland-security forces, designing, assembling and servicing surveillance and logistics drones from its Noida facility.

Defence / UAV DPIIT & GeM Certified OEM Unlisted · Public Ltd CIN: U35999DL2018PLC332296
Sector
Defence / UAV (Drones)
Incorporated
10 Apr 2018
Status
Unlisted Public Ltd
Last AGM
30 Sep 2025
Reg. Office
Defence Colony, Delhi
Facility
Sector 2, Noida (UP)
FY25 Revenue
₹12.20 Cr
FY25 PAT
₹1.51 Cr

01Business Model

Gamma Rotors Limited (GRL) is an indigenous Indian drone company that designs, assembles and manufactures Unmanned Aerial Vehicle Systems (UAVS) and also provides their maintenance and servicing. It positions itself as an Original Equipment Manufacturer (OEM) of drones for defence, paramilitary, homeland-security and industrial applications, under the tagline "Protecting Those Who Protect Us."

The model rests on three legs: sale of in-house designed UAV platforms to government and security agencies; customised / made-to-order drone solutions built to specific mission requirements; and after-sales maintenance, servicing and operator training. Revenue is heavily oriented towards government and defence buyers — lending order-book visibility, but also concentrating customer risk and exposing the company to procurement cycles.

Reported operating metrics highlight the scale built since 2018:

7+
Years Experience
500+
Drones Sold
2,000+
Soldiers Trained
2,500+
Hours in Air

The company is a DPIIT-recognised and GeM-certified OEM, counting the Indian Army, Indian Navy, BSF, CISF, NSG, ITBP, RPF and multiple state police forces (Delhi, AP, Mumbai Traffic, MP) among its stated clientele. Technology differentiators include high-resolution imaging sensors, long-range communication, lightweight carbon-fibre / titanium airframes, AI-enabled autonomous flight and obstacle avoidance, and in-house additive manufacturing (3D printing) for rapid prototyping.

02Promoter & Management

The promoter and driving force is Mr. Arpan Ghosh, Founder & Whole-time Director, with deep technical expertise in drone aerodynamics, electronics and software. He is notably a recipient of the Prime Minister's Award from Shri Narendra Modi for developing what the company describes as the world's first aerial bomb-defusing robot. Mrs. Sushmita Ghosh is the other promoter / Director and part of the promoter group.

As of 31 March 2025, the promoter group held 52.68%, with the balance 47.32% held by public / non-promoter shareholders.

NameRoleHolding %
Arpan GhoshFounder & Whole-time Director (Promoter)46.11
Sushmita GhoshDirector (Promoter)6.57
Praveenkumar JeevanandhamWhole-time / Additional Director0.07
Unlisted Assets Pvt LtdBody Corporate (>5% holder)25.41
Sarthak AgarwalChief Operating Officer (ex-IIT Bombay)—

Note: Earlier co-founder / director Mr. Venkata Challam Krishnan ceased to be a director on 18 Sep 2024; promoter shareholding was substantially consolidated in favour of the Ghosh family thereafter.

03Product Portfolio (Drones Manufactured)

Gamma Rotors manufactures a range of multi-rotor UAV platforms spanning micro-surveillance to heavy-lift logistics, plus Air Remote Controlled Weapon Systems (ARCWS). All platforms operate across a wide −20°C to 50°C band, reflecting design intent for harsh border and high-altitude deployment.

MiniBot

Compact aerial surveillance
Flight35 min
Range5 km
Payload30 kg
Ceiling3,500 m

MiniBot-TI

Surveillance w/ thermal & IR imaging
Flight35 min
Range5 km
Payload30 kg
Ceiling3,500 m

NightHawk

All-weather day + night (IR) surveillance
Flight50 min
Range5 km
Payload30 kg
Ceiling6,000 m

Griffon

High-altitude, high-agility surveillance
Flight45 min
Range10 km
Payload30 kg
Ceiling4,000 m

Powersorous

Heavy-payload logistics / delivery
Flight45 min
Range10 km
Payload30 kg
Ceiling6,000 m

Beyond these catalogue platforms, the company offers fully customised drones and Air Remote Controlled Weapon Systems (ARCWS) tailored to client missions.

04Noida Facility

While the registered office is in Defence Colony, New Delhi, the company's operating / business facility is located in Noida, Uttar Pradesh:

B-125, Second Floor, Multisoft Building, Near Sector-15 Metro Station, Sector 2, Noida, Uttar Pradesh – 201301, India

The Noida unit functions as the company's engineering, assembly and product-development base, where drone airframes, electronics and onboard software are integrated. It supports in-house advanced manufacturing including additive manufacturing (3D printing) and precision machining for rapid prototyping and customisation. Gross fixed assets (incl. intangibles) stood at ₹4.03 Cr as of FY25, consistent with an asset-light assembly-and-integration model rather than a heavy capital-intensive setup.

05Financial Performance

Gamma Rotors has scaled revenue rapidly off a small base, turning profitable from FY20 and posting a sharp jump in FY24. Standalone financials (₹ Crore) per MCA / AOC-4 filings:

Particulars (₹ Cr)FY21FY22FY23FY24FY25
Net Revenue1.633.384.1511.1812.20
EBITDA0.420.941.112.062.72
EBITDA Margin %25.627.726.718.422.3
Profit Before Tax0.100.200.231.222.22
Net Profit (PAT)0.080.140.150.861.51
Net Margin %5.04.23.67.712.4
Total Equity0.550.690.908.2636.88
Total Debt3.174.845.531.211.03
Total Assets4.437.159.1216.2941.83

Key observations

  • Revenue grew from ₹1.63 Cr (FY21) to ₹12.20 Cr (FY25) — a ~4-year CAGR of roughly 65%, with the steepest jump in FY24 (+169% YoY).
  • Profitability improved markedly — net margin expanded from ~4% to 12.4%, and PAT rose to ₹1.51 Cr in FY25.
  • The balance sheet was substantially recapitalised in FY25: total equity jumped to ₹36.88 Cr (from ₹8.26 Cr) on the equity raise, while debt was largely paid down to ₹1.03 Cr (debt/equity ~0).
  • FY25 shows a large inventory build-up (₹15.19 Cr) and cash balance of ₹13.21 Cr, lifting total assets to ₹41.83 Cr — fresh capital deployed into working capital ahead of order execution.

06FY25 Financial Deep-Dive

The audited FY25 statements (auditor: D. Khurana & Company, unmodified opinion, dated 02 Sep 2025) show headline revenue of ₹12.2 Cr and PAT of ₹1.51 Cr. The more useful story sits in the working-capital and cash-flow lines — and most of it is consistent with how a small-cap / SME defence-supply business actually behaves, rather than anything alarming. Read in that context, here is what FY25 really shows.

Revenue is steady, but the P&L is driven by an inventory build

Revenue grew only ~9% (₹11.18 Cr → ₹12.20 Cr) after the +169% FY24 jump, so the top line effectively plateaued for a year. What moved the financials was procurement: stock purchases rose to ₹21.80 Cr (FY24: ₹5.96 Cr), and most of it landed in closing inventory of ₹15.19 Cr (FY24: ₹0.35 Cr). The ₹14.84 Cr "change in inventories" credit is what holds up the reported profit. For most businesses that would look odd, but for an SME drone manufacturer it is plausible: order award and delivery timelines are irregular and government-driven, so building stock ahead of an expected order is a normal — if cash-hungry — way to operate. It is not, on its own, a problem; it just means FY25 profit is inventory-supported and the real test is whether that stock converts to billed, collected sales in FY26.

Operating cash was negative — typical for a growth-phase SME

Net cash from operations was roughly −₹12.2 Cr even though PAT was positive, because the cash went into inventory and working capital. In larger, steady-state companies that divergence would be a warning; in a small, scaling, project-lumpy supplier it is the normal pattern — growth years consume cash before they generate it. The relevant point for valuation is simply that the ~₹27 Cr raised in Jan-2025 has largely funded working capital, so the company will lean on order execution (not the balance sheet) to fund the next leg.

Receivables and inventory swung in opposite directions

Trade receivables fell sharply from ₹9.81 Cr to ₹1.53 Cr in the same year inventory ballooned. That is a big single-year swing — collecting almost all prior dues while simultaneously stockpiling — and it mostly reflects lumpy, milestone-based government order timing. The practical takeaway is not suspicion but that no single year is a clean run-rate for this company; the numbers will stay volatile year to year.

Quality of earnings: a chunk of PAT is non-operating

Other income was ₹0.56 Cr (FY24: ₹0.01 Cr) — about 37% of PAT — and includes ~₹0.34 Cr profit on sale of fixed assets, which is non-operating and non-recurring. Adjusting for that, the underlying operating profit is a little thinner than the ₹1.51 Cr headline. Worth noting for normalising earnings, but a small absolute number.

Interest cost vs the "debt-free" closing balance sheet

Finance cost was ₹0.70 Cr even though year-end debt is just ₹1.03 Cr. The schedules show business-loan, car-loan and overdraft interest through the year, with borrowings largely repaid near year-end after the equity raise. So the company did use working-capital debt during FY25 — the clean closing balance sheet understates the funding the operations actually needed mid-year. Again, normal for the model; just don't read the year-end "near-zero debt" as a no-leverage business.

Net read
FY25 is a steady-revenue, inventory-heavy year where reported profit is real but cash-light, and the balance sheet was reset by the equity raise. For an SME defence supplier this is an ordinary growth-phase profile, not a governance or accounting concern — the audit is unmodified, with no pending litigation or fraud reported. The one thing that genuinely matters going forward is execution: whether the ₹15 Cr of inventory converts into billed, collected FY26 revenue and whether profit starts turning into operating cash.

07Fund Raise / Securities Allotment

The company has raised equity through a series of private-placement allotments. The most significant recent event is the January 2025 cash allotment at a steep premium, which transformed the balance sheet. Allotment history per MCA Form PAS-3:

Allotment DateTypeSecuritiesFV (₹)Premium (₹)Amount (₹ Cr)
10 Jan 2025Cash19,72,578213527.11
02 Dec 2024Bonus (non-cash)1,08,07,5002—0.00
29 Feb 2024Cash661022,8210.15
11 Dec 2023Cash6571022,8211.50
30 Oct 2023Cash1541022,8210.35
08 Oct 2023Cash2181022,8210.50
22 Sep 2023Other than cash9111021,9432.00
15 May 2023Other than cash2,942106,7902.00
21 Jan 2019Cash6,667106360.43

The January 2025 round raised ~₹27.1 Crore (19,72,578 shares at ₹2 face value + ₹135 premium = ₹137/share). Earlier rounds (2023–24) were at ₹10 face value with a ~₹22,821 premium; following the Nov-2024 1:5 stock split (₹10 → ₹2) and the Dec-2024 1,08,07,500-share bonus issue, per-share economics changed sharply. The Jan-2025 issue price of ₹137 closely tracks the registered valuer's fair value (Section 07).

08Last Independent Valuation

An independent valuation was carried out by Mr. Saurobh Kumar Barick, IBBI-Registered Valuer (Reg. No. IBBI/RV/11/2019/12454), for allotment of equity shares under Section 62(1)(c) of the Companies Act, 2013.

Valuation Date31 October 2024
Report Date06 December 2024
Methodology UsedDiscounted Cash Flow (DCF) – FCFF, Income Approach
Discount Rate (WACC)22.65% (Cost of Equity ~22.72%)
Terminal Growth Rate4.00% (Gordon Growth Model)
Enterprise Value₹156.88 Crore
Equity Value₹150.00 Crore
Diluted No. of Shares1,09,15,575
Fair Value per Share (FV ₹2)₹137.42

The valuer concluded a fair value of ₹137.42 per equity share (face value ₹2) as on 31 October 2024, on a fully-diluted base of 1,09,15,575 shares — after the Nov-2024 sub-division of each ₹10 share into five ₹2 shares and the Dec-2024 bonus issue of 1,08,07,500 shares.

The DCF used management-certified projections from FY25 (5 months) to FY30, with PAT projected to grow from ~₹13.9 Cr (FY25 part-year) to ~₹75.5 Cr by FY30, discounted at a 22.65% WACC and 4% terminal growth. NAV, CCM and CTM methods were considered but not relied upon (no listed comparables / comparable transactions; going-concern basis).

Bottom line: Last assessed fair value — ₹137.42 per share (FV ₹2) as on 31 Oct 2024. The subsequent Jan-2025 primary raise was done at ~₹137/share, validating this mark.

09UnlistedZone Analysis

Our independent read on the business and where the valuation sits today.

1
Strong Foundations

Solid founder, credible technology, good infrastructure — but scale is the missing piece.

The founder, Mr. Arpan Ghosh, is a genuine technologist (PM Award winner for the world's first aerial bomb-defusing robot), and the company has built a real, working product suite — MiniBot, NightHawk, Griffon, Powersorous — backed by a capable Noida engineering and assembly facility. The technology and the defence/paramilitary client list are real strengths.

However, the business is not yet scaling meaningfully. FY25 revenue of ₹12.2 Cr was up just ~9% over FY24's ₹11.18 Cr, a sharp deceleration after the +169% FY24 spike. For a defence-tech company that has raised fresh capital and paid down debt, the next leg of revenue growth — converting the Noida capacity and order pipeline into a materially larger top line — is still to be demonstrated.

2
Valuation Looks Stretched

Post-money valuation appears rich relative to current earnings.

At the Jan-2025 issue price of ~₹137/share on ~1.29 Cr shares, the post-money valuation works out to roughly ₹180 Cr — implying a trailing P/E of ~119x on FY25 PAT of ₹1.51 Cr. That is a steep multiple to underwrite on a company growing the top line in single digits.

Implied Valuation Math
12,888,153 shares × ₹137 = ~₹180 Cr post-money
₹180 Cr ÷ FY25 PAT ₹1.51 Cr = ~119x P/E

Two structural points worth flagging: the company has already done a 1:5 share split (₹10 → ₹2 face value) and a bonus issue (Dec-2024, 1,08,07,500 shares) — so optical "per-share" comparisons across rounds can be misleading, and a lot of the value-creation levers (split, bonus, premium raise) have already been pulled.

What we're watching → FY26 is the key year. The two things that actually decide whether the ~119x multiple is justifiable are execution-driven, not accounting concerns: (1) does the ₹15 Cr of inventory convert into billed, collected FY26 revenue, and (2) does profit start turning into operating cash. Until those show up, the valuation looks demanding for a single-digit-growth year — but the underlying business and order-led model remain credible.
This research note has been prepared by UnlistedZone for informational and educational purposes only, based on data sourced from the company's website, MCA / Probe42 filings and an independent registered-valuer report. It is not investment advice, nor an offer or solicitation to buy or sell any security. Unlisted shares are illiquid and carry the risk of loss; past performance and reported valuations do not guarantee future results. Investors should conduct their own due diligence and consult a financial advisor. All trademarks belong to their respective owners.
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