IZMO Limited Reports Strong H1 FY26 Performance, Advances in Silicon Photonics

IZMO Limited (ISIN: INE848A01014) has reported a robust financial performance for the first half of FY26, marking significant strides in its core businesses and emerging technologies. The company's strategic focus on expanding its clientele and advancing its semiconductor capabilities has yielded positive results.

Financial Highlights

IZMO Limited achieved a revenue of INR 116.62 crores in H1 FY26, representing a 9.8% year-on-year growth. This growth was primarily driven by an expanding clientele across the US and Europe, as well as increased contributions from its subsidiaries.

Key financial metrics for Q2 FY26 include:

Metric	Q2 FY26 (INR Crores)	YoY Change
Revenue	64.60	12.35%
Sales	60.10	2.74%
EBITDA	18.00	-53.25%
Net Profit	12.60	-57.86%
EPS (INR)	8.43	-60.12%

Despite the challenging global economic environment, IZMO has managed to maintain growth in its core business while experiencing a decline in its bottom line.

Operational Developments

IzmoMicro Progress

IZMO's subsidiary, IzmoMicro, has shown promising growth, with its order book increasing to INR 50 crores, up from INR 25 crores reported earlier. This growth underscores the increasing demand for IZMO's advanced packaging solutions in the semiconductor industry.

DSIR Recognition

In a significant milestone, IZMO Limited has received recognition from the Department of Scientific and Industrial Research (DSIR), Government of India, for its in-house R&D unit. This recognition highlights IZMO's leadership in advanced semiconductor packaging and its sustained investment in silicon photonics, a critical technology for future computing and communications.

Expansion Plans

IZMO has announced plans for a substantial expansion of its advanced packaging facility. The company is looking to raise INR 150-200 crores to fund this expansion, which aims to increase its revenue capacity to INR 1,000 crores. This move is aligned with the growing demand for advanced packaging solutions in the semiconductor industry, particularly in silicon photonics.

Future Outlook

The company's focus on silicon photonics and advanced packaging positions it well in the rapidly growing AI and data center markets. With the planned expansion and increasing order book, IZMO may be poised for growth in the coming years.

However, investors should note that the semiconductor industry is cyclical and subject to rapid technological changes. IZMO's success will depend on its ability to execute its expansion plans effectively and maintain its technological edge in a competitive market.

As IZMO continues to invest in R&D and expand its capabilities, it will be crucial to monitor the company's ability to translate these investments into sustainable revenue growth and profitability.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-5.00%	+10.75%	+7.13%	+208.73%	+117.18%	+1,998.57%

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.