Izmo Limited Reports 2.7% Revenue Growth and 42.4% EBITDA Surge in Q2 FY26

IZMO Limited, a leading automotive solutions provider, has announced its financial results for the second quarter of fiscal year 2026, showcasing steady growth and improved profitability.

Key Financial Highlights

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	60.10	58.55	2.7% ↑
EBITDA (excl. other income)	13.50	9.49	42.4% ↑
EBITDA Margin	22.48%	16.20%	628 bps ↑
PAT	12.56	29.90	58.0% ↓
PAT Margin	20.90%	51.07%	3017 bps ↓

All financial figures in Rs. crores

Operational Highlights

Added 78 new clients in the US market
Secured 22 new clients in Europe and UK
Synergies from Geronimo acquisition and Izmo Microsystems subsidiary driving growth
Increased AI adoption boosting operational efficiencies

Business Segment Performance

Izmo Limited's revenue is diversified across multiple business divisions:

Izmo Studio: 41% of revenue
Frog Data: 26% of revenue
Izmo Micro: 27% of revenue
Izmo Cars: 4% of revenue
Add-On Auto: 2% of revenue

Geographical Revenue Distribution

North America: 71%
Europe: 17%
India: 12%

Management Commentary

The company's management expressed satisfaction with the quarter's performance, stating that it aligns with their expectations and continues their growth trajectory. They highlighted the rising demand for both existing and new offerings across established and emerging markets.

Recent Developments

izmostock Platform Redesign: The company has launched a redesigned platform for izmoStock, its global auto imagery division, featuring enhanced navigation, search capabilities, and comprehensive image sets.
Automotive AI Factory: Izmo has introduced a dedicated AI innovation hub to boost AI adoption in the auto industry. The first product from this initiative is DEEP (Data Extraction & Enrichment Platform).
Semiconductor Expansion: Izmo Microsystems is making significant strides in semiconductor packaging, including a breakthrough in silicon photonics packaging.
R&D Recognition: Izmo recently received recognition from the Department of Scientific and Industrial Research (DSIR), Government of India, for its in-house R&D unit.

Future Outlook

Izmo Limited plans to focus on growing existing products in current geographies while also expanding into new market segments. The company sees significant potential in its semiconductor packaging business, aligning with the Indian government's 'Make in India' initiative.

With a stable gross revenue retention rate of 98.5% and increasing AI adoption driving operational efficiencies, Izmo Limited appears well-positioned for continued growth in the automotive solutions and semiconductor packaging sectors.

Investors should note that while revenue and EBITDA have shown strong growth, the decrease in PAT is primarily due to a significant reduction in other income compared to the previous year. The core business operations, however, demonstrate robust performance and improved margins.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.91%	+2.22%	-0.48%	+199.77%	+75.27%	+1,595.19%

IZMO Limited , a player in the automotive technology sector, has announced a strategic expansion plan alongside its previously approved fundraising initiative. The company aims to establish India's first integrated Silicon Photonics packaging unit, targeting the optical transceiver market driven by AI data centers.

Strategic Expansion

IZMO Limited plans to leverage its existing SaaS automotive business to support its venture into the semiconductor industry. The company's expansion strategy includes:

Establishing an integrated Silicon Photonics packaging unit
Targeting the optical transceiver market
Focusing on AI data center applications

Fundraising Details

To support this expansion, IZMO's Board of Directors has approved a proposal for raising funds up to Rs. 200.00 crores through various permissible modes, subject to necessary regulatory approvals. The fundraising plan includes:

Issuance of equity shares or other securities
Allocation of funds for specialized manufacturing equipment and R&D
Specific terms, including the type of security, pricing, and timing, to be determined at a later date

Strategic Implications

This strategic move comes as IZMO Limited reports growth in various segments of its business:

Addition of 78 new clients in the US market
Expansion in Europe, including the UK, with 22 new client acquisitions
Progress in its IZMO Microsystems business, which is expected to contribute 50% of the company's overall revenues in the next 2-3 years

Recent Developments

IZMO Limited has also made strides in other areas:

Recognition as an R&D House by the Department of Scientific and Industrial Research
Leadership position in advanced 3D packaging and Silicon Photonics packaging, contributing to the "Make in India" program, especially in the defense vertical

Financial Performance

The company's recent financial results are as follows:

Particulars	Half Year Ended 30.09.2025 (Rs. in Lakhs)
Total Income	12,202.79
Net Profit After Tax	1,856.32

Outlook

The proposed fundraising of up to Rs. 200.00 crores is expected to provide IZMO Limited with financial flexibility to capitalize on growth opportunities in both the automotive technology sector and the emerging semiconductor packaging industry. As the company continues to expand its client base and diversify its offerings, this capital infusion could play a role in supporting its strategic initiatives and long-term growth plans.