IKIO Technologies Limited has submitted its quarterly monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations. The report provides a comprehensive overview of the utilization of proceeds from the company's Initial Public Offer (IPO) conducted in June 2023.

IPO Proceeds Utilization Status

The monitoring agency report, prepared by CRISIL Ratings Limited, reveals that IKIO Technologies utilized Rs 163.69 million during the third quarter of FY26. The company's cumulative utilization stands at Rs 2,721.77 million from the total revised net proceeds of Rs 3,261.41 million, leaving Rs 539.64 million unutilized.

Object-wise Fund Deployment

The IPO proceeds were allocated across three primary objectives. The repayment of borrowings worth Rs 500.00 million has been fully completed during the quarter ended June 30, 2023. For investment in wholly owned subsidiary IKIO Solutions Private Limited, the company has utilized Rs 1,583.99 million out of the allocated Rs 2,123.12 million, leaving Rs 539.13 million pending. General corporate purposes have seen utilization of Rs 637.78 million against the allocated Rs 638.29 million.

Investment of Unutilized Funds

The company has deployed the unutilized proceeds in fixed deposits with HDFC Bank, earning returns ranging from 6.15% to 7.55%. The total amount invested in various fixed deposits is Rs 537.63 million, which has generated earnings of Rs 25.29 million as of December 31, 2025. The market value of these investments stands at Rs 563.42 million.

Regulatory Compliance and Approvals

The monitoring agency confirmed that all government and statutory approvals related to the objects have been obtained. These include approvals from Noida Authority for building layout, consent to establish, electrical load sanction from UP Electricity Board, and factory license from the Industrial Department. The company has also obtained necessary approvals for its leased premises at Plot No-6, Sector-156, Gautam Buddha Nagar, where commercial production commenced on March 20, 2024.

Implementation Timeline

The report indicates a delay in the complete utilization of funds allocated for the subsidiary investment, which was originally scheduled for completion by Fiscal 2025. The company has confirmed that the remaining net proceeds will be utilized in subsequent periods in accordance with applicable laws on or before March 31, 2027. The delay is attributed to procurement challenges, operationalization of assets, and obtaining necessary approvals and licenses.

Monitoring Framework

CRISIL Ratings Limited continues to serve as the monitoring agency, appointed to oversee the utilization of IPO proceeds as per the Monitoring Agency Agreement dated April 18, 2023. The report confirms no deviations from the disclosed objects and no material changes in the means of finance for the stated objectives.

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.