IKIO Technologies Limited , a leading player in the LED lighting industry, has reported its financial results for the second quarter of FY26, showcasing healthy revenue growth but a contraction in profitability margins.

Revenue Growth Momentum

IKIO Technologies continued to demonstrate strong top-line performance, with Q2 FY26 revenue rising to ₹1.64 billion compared to ₹1.25 billion in the same quarter last year — a 31% year-over-year (YoY) increase. This growth underscores the company’s expanding market presence and continued demand for its LED lighting solutions.

EBITDA and Margin Pressure

The company reported an EBITDA of ₹184 million for Q2 FY26, compared to ₹222 million in Q2 FY25, reflecting a 17% YoY decline. The EBITDA margin dropped to 11%, down from 18% in the previous year, indicating cost pressures and operational inefficiencies despite rising sales.

Profitability Trends

IKIO’s net profit for Q2 FY26 came in at ₹109 million, a decline from ₹129 million in the same period last year, marking a 16% YoY decrease. The decline in profitability, despite revenue growth, points to higher input costs and margin compression across operations.

Financial Highlights

Below is a summary of IKIO Technologies’ key financial metrics for Q2 FY26:

Management Decisions

According to the company’s latest LODR filing, the Board of Directors approved several key measures during the quarter:

1. Approval of the unaudited financial results for Q2 and H1 FY26.
2. Extension of the Internal Auditor’s appointment for an additional six months.
3. Amendment to the Code of Conduct for Prevention of Insider Trading, revising the trading window closure period.

These steps reinforce IKIO Technologies’ focus on maintaining strong governance and transparency.

Outlook

While IKIO Technologies continues to deliver strong revenue growth, the decline in margins and profitability highlights the need for tighter cost controls and efficiency improvements. Sustaining growth while improving operational leverage will be crucial for the company’s long-term success in the competitive LED lighting market.

IKIO Technologies Limited , a leading player in the lighting and electronics industry, has reported a strong performance in the first quarter of fiscal year 2026, marking significant progress in its diversification strategy.

Revenue Growth and Business Mix

The company achieved a 7% quarter-on-quarter growth, with revenue reaching INR 120.00 crores in Q1 FY26. This growth was primarily driven by strong performances in the Product Display, Energy Solutions, and other segments, which collectively offset softness observed in the ODM home lighting business.

IKIO has made substantial strides in diversifying its business mix:

• Reduced dependence on single customer ODM home lighting business from 52% in Q1 FY25 to 32% in Q1 FY26
• Revenue from other business segments grew by 35% year-over-year to INR 81.00 crores, now contributing 68% of the total revenue

International Expansion

The company's international revenue reached INR 30.00 crores, contributing 25% of total revenue with an impressive 84% quarter-on-quarter growth. IKIO has successfully entered the Gulf market through exports under its Product Display segment, showing encouraging traction and strong growth momentum within the first year of operations.

Financial Performance

• EBITDA: INR 11.00 crores (83% quarter-on-quarter growth)
• Profit After Tax: INR 2.00 crores (compared to a loss of INR 1.00 crore in the previous quarter)
• Cash PAT: INR 9.00 crores (74% quarter-on-quarter growth)

Strategic Initiatives and Future Outlook

IKIO Technologies is implementing several strategic initiatives:

1. Expanding customer base in the lighting segment by onboarding leading Indian and international brands as an ODM supplier
2. Foraying into high-end lighting categories, including indoor, industrial, office, and outdoor applications
3. Deploying IPO proceeds (approximately 75% utilized)
   • Block 1 now operational
   • Block 2 civil construction nearing completion
4. Progressing in new markets:
   • Gulf region exports
   • Hearable and wearable products
   • Upcoming automotive segment initiatives

Mr. Hardeep Singh, Chairman and Managing Director of IKIO Technologies, commented on the results, saying, "Our strategic transition from a single customer ODM home lighting model to a broader diversified customer base across emerging verticals has started yielding results. We are expanding our customer base and foraying into high-end lighting categories, positioning the company for long-term sustainable growth."

As IKIO Technologies continues to diversify its product portfolio and expand its global presence, the company remains optimistic about its long-term growth prospects and the value creation for its stakeholders.