IKIO Technologies LimitedCapital Goods & EngineeringIKIO
Q1 FY27 concall · earnings callIKIO Technologies Limited
The quarter featured robust 41% revenue growth and a 94% jump in EBITDA driven by diversification and scale, but profitability was squeezed sequentially by war-induced supply chain disruptions and raw material inflation.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | ₹169 Cr | 41% YoY | |
| EBITDA | ₹22 Cr | 94% YoY | |
| EBITDA Margin | 13% | from 9.4% in Q1 of last year | |
| PAT | ₹11 Cr | from ₹2 Cr in the same quarter last year | |
| Other Business Revenue | ₹124 Cr | 53% YoY | |
| Home Lighting ODM Revenue | ₹45 Cr | 16% YoY |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹121.52 Cr+4% YoY-2.8% QoQ | ₹7.80 Cr-58.9% YoY-39.6% QoQ | ₹1.01-60.5% YoY-39.5% QoQ |
| Q2 FY25 | ₹125.04 Cr+6% YoY-1.6% QoQ | ₹12.92 Cr-29.2% YoY+4.4% QoQ | ₹1.67-29.2% YoY+4.4% QoQ |
| Q1 FY25 | ₹127.04 Cr+17.2% YoY+34% QoQ | ₹12.37 Cr-10.7% YoY+29.9% QoQ | ₹1.60-10.6% YoY+26% QoQ |
| Q4 FY24 | ₹94.79 Cr-19.7% YoY-18.9% QoQ | ₹9.52 Cr-31.4% YoY-49.8% QoQ | ₹1.27-40.4% YoY-50.4% QoQ |
| Q3 FY24 | ₹116.89 Cr— YoY-0.9% QoQ | ₹18.96 Cr— YoY+3.9% QoQ | ₹2.56— YoY+8.5% QoQ |
TL;DR
- Revenue grew 41% YoY to Rs. 169 crores, led by strong traction in other businesses and improving home lighting ODM.
- EBITDA surged 94% YoY to Rs. 22 crores, though margins were pressured sequentially by higher raw material costs and employee expenses.
- Management is focused on diversification across products and geographies, with over 20 countries now served.
- Capacity expansion is progressing, with Block 1 operational, Block 2 partially commercialized, and Block 3 under construction.
- Guidance for the year remains 18%-20% revenue growth, with an EBITDA margin expectation around 13%-14%, though this is contingent on geopolitical stabilization.
Said on the call
“The problem with the gross margins today is we are in times which I would say is similar to what happened during COVID because lead times have gone up like anything.”
From the Q&A
| Topic | What management said |
|---|---|
| Margin Trajectory and Raw Material Pressures | Management attributes the sequential dip in gross margin (from 44%-45% to 41%) and profitability to war-led supply chain disruptions, spot buying of components with 5-6x higher lead times, and volatile metal prices; they expect to maintain ~41% gross margins for the year if the situation doesn't escalate. |
| Diversification Strategy | Management highlights success in reducing dependence on home lighting ODM from ~60% of revenue to less than 20%, driven by growth in other segments like hearables/wearables, refrigeration, automotive, and the Middle East market (despite war impact), with these verticals seen as future growth engines. |
| Segment Growth and Outlook | For the home lighting ODM business, the full-year revenue is expected to be broadly similar to last year's ~Rs. 170 crores, possibly with an uptick of Rs. 10-15 crores; the company expects a 18%-20% overall revenue growth for FY27 but is not officially upping guidance due to market volatility. |
| Segment EBITDA Margins | Management provided segment EBITDA margins: ~8.4% for home lighting ODM in Q1 and ~15% for the other business segment; for the full year, group-level EBITDA margin is expected to be around 13%-14%, with a long-term target of 17%-18% at peak utilization. |
| New Business Development (Hearables/Wearables, Automotive, Honeywell) | Hearables/wearables now contribute ~15-17% of revenue, with a transition from job work to more ODM products; in automotive lighting, production has begun for five major aftermarket brands, with OEM onboarding targeted for Phase 2 (potentially by FY28); the Honeywell partnership is expanding with new products and SKUs expected to increase 3-4x by year-end. |
| Capacity and Capex | Capex for the year is estimated at Rs. 20-25 crores, primarily for Tower 3; Tower 2 is partially commercialized, and depreciation from it will start impacting from Q2. |
Guidance
- Revenue growth guidance for the year remains at 18%-20%.
- Group-level EBITDA margin is expected to be around 13%-14% for the year.
- Capex for the year is estimated at Rs. 20-25 crores.
- Long-term target EBITDA margin at peak utilization is 17%-18%.
- The company aims to reach peak asset turn levels within the next 3-3.5 years if the geopolitical situation stabilizes.
Source
Summary written from the transcript filed by IKIO Technologies Limited for the call held on 11 Aug 2026; published 18 Aug 2026, 20:15 IST.
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