IKIO Technologies Limited has announced the incorporation of a new step-down subsidiary in the United Arab Emirates as part of its expansion strategy. The company informed stock exchanges about the establishment of ROYALUX GENERAL TRADING LLC through its subsidiary structure.

Corporate Structure and Ownership

The new subsidiary has been incorporated by Ritech Holding Limited UAE, which is a wholly owned subsidiary of IKIO Solutions Private Limited. IKIO Solutions Private Limited, in turn, is a wholly owned subsidiary of IKIO Technologies Limited, creating a step-down subsidiary structure.

Financial Structure

The newly incorporated entity has been established with a defined capital structure to support its trading operations. The authorized and paid-up share capital amounts to AED 300,000, structured as 300 shares with a face value of AED 1,000 each.

Business Objectives and Operations

According to the Memorandum of Association, ROYALUX GENERAL TRADING LLC will focus on general trading business and related activities. The company's objectives include:

• Carrying on general trading business and ancillary activities
• Participating with other companies in similar business ventures
• Expanding operations both within UAE and internationally
• Supporting the group's overall trading operations expansion

The subsidiary will operate from Dubai and is prohibited from engaging in insurance or banking business or investing funds for third-party accounts except in the normal course of business.

Regulatory Compliance

The incorporation has been completed in accordance with UAE regulatory requirements and relevant approvals from UAE authorities. The company has fulfilled disclosure obligations under SEBI Listing Regulations, specifically Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The initial subscription consideration of AED 153,000 has not been remitted as of the disclosure date and will be paid in due course according to applicable laws. Since the entity is newly incorporated, historical financial performance data is not yet available.

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.

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.

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.

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.

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.

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.