IKIO Technologies delivered a robust financial performance in Q4 FY26, with consolidated revenue rising 47% year-on-year and 14% quarter-on-quarter to ₹165 crores. The company's ongoing strategic pivot — from a predominantly Home Lighting-focused business to a diversified integrated technology solutions provider — continued to gain momentum, with non-Home Lighting segments accounting for 77% of Q4 FY26 revenues, up from 66% in Q4 FY25.

Q4 FY26 and Full Year FY26 Financial Highlights

The company sustained strong growth across both quarterly and annual periods. The following tables summarise key financial metrics:

Management noted that certain strategic expenses have been front-loaded and are expected to normalise with scale and operating leverage over time.

Diversification Driving Revenue Mix Shift

The company's other business segments — comprising Commercial Lighting, Hearables and Wearables, Energy Solutions, Electronic Components, and Automotive Lighting — recorded revenues rising 72% year-on-year and 26% quarter-on-quarter to ₹127 crores in Q4 FY26, and up 53% to ₹426 crores for the full year FY26. The contribution of these segments to overall revenue increased to 71% in FY26 from 57% in FY25.

Key developments underpinning this diversification include:

Management clarified that approximately 80% to 85% of products are developed under the ODM model. The Hearables and Wearables segment is currently approximately 60% OEM, with a stated strategy to progressively convert to ODM — mirroring the approach taken in Home Lighting approximately 15 years ago. Management also confirmed that the company does not intend to enter the B2C segment, with Gravus Tech focused on B2B project business targeting architects, designers, and export markets.

International Expansion and Geographic Footprint

Revenue from outside India grew 53% year-on-year to ₹110 crores in FY26, with the international contribution increasing to 18% in FY26 from 50% in FY25. The company has expanded its presence to over approximately 20 countries, with particularly strong traction in the Middle East market. Management highlighted that in the first year of Middle East operations, lighting revenues from that region reached approximately ₹43 crores. The U.S. market experienced a slowdown amid tariff uncertainty and geopolitical developments, though management indicated that customer onboarding efforts have continued and plans are ready to be activated once conditions stabilise, with results expected over the next two to three quarters.

Manufacturing Capacity, ODM Capabilities and Market Position

The company is enhancing its manufacturing capacity by approximately 5 lakh square feet through a greenfield project funded by IPO proceeds. Block I of 2 lakh square feet was commercialised in May 2024, while Block II of a similar size is expected to be commercialised by the end of Q1 FY27. The company operates five factories, with capacity across verticals designed to be largely interchangeable — enabling production lines to serve multiple product categories including lighting and non-lighting segments. Mature units are operating at approximately 70% or above efficiency levels, while newer verticals remain at lower utilisation rates that are expected to improve with volumes.

Total headcount has grown from approximately 1,600 at the time of the IPO to over 2,500 currently, reflecting the onboarding of teams for new verticals. The R&D team has also grown from approximately 40 people to close to approximately 80 people. Management noted that around the IPO, the company contributed approximately 23% to 24% of the functional decorative side of the Home Lighting segment (downlights and spotlights), based on a Frost & Sullivan survey. In Commercial Lighting and Refrigeration Lighting, management described the company as one of the largest — if not the largest — suppliers, with a customer base of approximately 200 or more in the commercial space. Pricing is largely conducted on a BOM-plus basis across most segments, with a typical lag of approximately two to three months before raw material or forex changes are reflected in financials.

Margin Trajectory and FY27 Outlook

Management acknowledged that EBITDA margins declined from pre-IPO levels of approximately 20% to 22%, attributing this to the onboarding of expenses associated with new verticals and product categories. However, margins have shown a consistent upward trend over the past four to five quarters, reaching approximately 16% in Q4 FY26. The Hearables and Wearables segment currently operates at higher single-digit EBITDA margins, with management targeting double-digit margins for that segment going forward. The company's stated target is to return to an EBITDA margin range of approximately 18% to 20% over the medium term, with improvement expected to come primarily from operating efficiencies as new verticals scale.

For FY27, management provided the following guidance:

Management also noted that gross margins are expected to remain broadly at current levels, with EBITDA margin improvement driven primarily by operating efficiencies as newer verticals scale, rather than gross margin expansion.

IKIO Technologies Limited filed its audited financial results for the quarter and year ended March 31, 2026, under Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company submitted newspaper clippings of The Financial Express and Jansatta dated May 4, 2026, to both BSE Limited and the National Stock Exchange of India Limited. The audited financial results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on May 2, 2026.

The company reported consolidated Profit After Tax of Rs 415.55 million for FY26, representing a 28% increase from Rs 324.19 million in the previous year. Total income for the consolidated entity reached Rs 6,098.13 million in FY26, compared to Rs 5,009.92 million in FY25. Profit before tax stood at Rs 529.95 million in FY26.

Q4 FY26 Performance

For the quarter ended March 31, 2026, the company delivered strong operational performance with consolidated PAT of Rs 175.23 million, a significant turnaround from a loss of Rs 6.70 million in Q4 FY25. Profit before tax stood at Rs 205.17 million in Q4 FY26 against Rs 8.31 million in the corresponding quarter of the previous year. Total income for Q4 FY26 was recorded at Rs 1,705.41 million, up from Rs 1,147.06 million in Q4 FY25.

Standalone Financial Results

On a standalone basis, the company reported total income of Rs 1,844.17 million for FY26 against Rs 1,844.47 million in the previous year. Standalone PAT for FY26 stood at Rs 147.80 million, compared to Rs 147.80 million in FY25. For Q4 FY26, standalone total income was Rs 408.17 million with PAT of Rs 29.01 million. Profit before tax for standalone Q4 FY26 was Rs 38.84 million.

Earnings Per Share and Equity Position

Basic Earnings Per Share (EPS) for the consolidated entity increased to Rs 4.89 in FY26 from Rs 4.19 in FY25. Diluted EPS stood at Rs 4.87 for FY26. Equity share capital remained unchanged at Rs 772.81 million. Other equity increased to Rs 5,248.45 million in FY26 from Rs 4,832.45 million in the previous year, reflecting the company's strengthening financial position.

Corporate Governance and Compliance

The audited financial results have been prepared in accordance with Indian Accounting Standards as notified under the Companies (Indian Accounting Standards) Rules, 2015, and comply with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's primary business segment remains the manufacturing of LED lighting. The submission of newspaper clippings to BSE and NSE on May 4, 2026, completes the regulatory compliance process under Regulation 47.