IKIO Technologies Q3 FY26 Earnings Call: 20% Revenue Growth, Automotive Launch
IKIO Technologies delivered robust Q3 FY26 performance with consolidated revenue of ₹1,455.88 million and EBITDA of ₹218 million, reflecting 20% and 46% growth respectively. The company successfully launched its automotive lighting segment and expanded international operations, particularly in the Middle East, while maintaining strong margins and diversification strategy.
*this image is generated using AI for illustrative purposes only.
IKIO Technologies Limited announced its unaudited financial results for the quarter ended December 31, 2025, demonstrating solid operational performance across both consolidated and standalone metrics. The Board of Directors approved the results at their meeting held on January 31, 2026, along with important leadership restructuring in subsidiary companies. The company subsequently held its Q3 & 9 Months FY26 earnings conference call on February 2, 2026, providing detailed insights into business performance and strategic initiatives.
Strong Profitability and Margin Expansion
The company delivered impressive profitability metrics for Q3 FY26, with EBITDA reaching ₹218 million compared to ₹149 million in the corresponding quarter of the previous year. The EBITDA margin expanded significantly to 15.03% from 12.23% year-on-year, reflecting improved operational efficiency and cost management.
| Profitability Metric: | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| EBITDA: | ₹218 million | ₹149 million | +46.31% |
| EBITDA Margin: | 15.03% | 12.23% | +280 bps |
| Net Profit After Tax: | ₹107.64 million | ₹78.80 million | +36.60% |
| Earnings Per Share (Basic): | ₹1.39 | ₹1.01 | +37.62% |
Consolidated Financial Performance
The company's consolidated operations showed strong performance for the third quarter of FY26. Total income reached ₹1,485.48 million, comprising revenue from operations of ₹1,455.88 million and other income of ₹29.60 million. Revenue from operations grew 19.81% year-on-year from ₹1.22 billion in Q3 FY25.
| Revenue Metric: | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations: | ₹1.45B | ₹1.22B | +19.81% |
| Total Income: | ₹1,485.48 million | ₹1,253.35 million | +18.52% |
For the nine months ended December 31, 2025, consolidated revenue from operations stood at ₹4,299.41 million with net profit after tax of ₹240.32 million, compared to ₹3,735.92 million revenue and ₹330.89 million profit in the corresponding period of the previous year.
Business Diversification and Geographic Expansion
During the earnings call, Chairman and Managing Director Hardeep Singh highlighted the company's successful diversification strategy. The other businesses segment maintained robust growth, increasing 33% year-on-year to ₹101 crores in Q3 FY26 and 46% year-on-year to ₹298 crores in 9 months FY26. Revenue contribution from other businesses increased to 70% in Q3 FY26 from 63% in Q3 FY25.
| Business Segment Performance: | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Other Business Revenue: | ₹101 crores | - | +33% YoY |
| 9M Other Business Revenue: | ₹298 crores | - | +46% YoY |
| Revenue Contribution %: | 70% | 63% | +700 bps |
Geographically, performance was led by strong demand in the Middle East, particularly Dubai. Revenue from outside India rose 57% year-on-year to ₹90 crores in 9 months FY26, now accounting for roughly 21% of total revenue despite macro headwinds in the USA amid tariff uncertainty.
New Automotive Segment Launch
A significant development announced during the earnings call was the commencement of automotive lighting production. The company has started delivering products to four to five major automotive customers, marking its entry into this new vertical. Block II of the manufacturing facility, spanning 2 lakh square feet, is ready for operational activities with 40% space allocated to automotive lighting and electronics.
| Manufacturing Facility Details: | Specifications |
|---|---|
| Block II Space: | 2 lakh square feet |
| Automotive Allocation: | 40% of Block II |
| Hearable/Wearable Allocation: | 60% of Block II |
| Expected Utilization: | 40-50% within 6 months |
Standalone Financial Results
On a standalone basis, the company reported revenue from operations of ₹441.65 million for Q3 FY26, with total income of ₹479.79 million including other income of ₹38.14 million. Net profit after tax for the quarter was ₹37.01 million.
| Parameter: | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Standalone Revenue: | ₹441.65 million | ₹451.28 million | -2.13% |
| Standalone Net Profit: | ₹37.01 million | ₹51.03 million | -27.46% |
| Basic EPS: | ₹0.48 | ₹0.66 | -27.27% |
Strategic Initiatives and Future Outlook
The company has acquired an 88% stake in Gravus Tech to enhance marketing and distribution capabilities for high-end lighting products. Management expects to benefit from the PLI scheme starting next financial year, with an anticipated advantage of approximately ₹5-6 crores. The company is also exploring entry into European markets and expects sustainable gross margins between 40-45% going forward.
| IPO Utilization: | Allocated Amount | Utilized Amount | Balance |
|---|---|---|---|
| Debt Repayment: | ₹500.00 million | ₹500.00 million | ₹0.00 million |
| Capital Expenditure: | ₹2,123.12 million | ₹1,583.99 million | ₹539.13 million |
| General Corporate Purposes: | ₹638.29 million | ₹637.78 million | ₹0.51 million |
Historical Stock Returns for IKIO Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.37% | -3.02% | -10.64% | -25.31% | -15.40% | -67.29% |
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