IKIO reports Rs 5 crore automotive LED sales in Q2 FY27

IKIO Technologies Limited reported about Rs 5 crore of automotive LED lighting sales in Q2 FY27, its first commercial supply quarter, as management said customers collected material planned for four months in about one month. IKIO is supplying the aftermarket, is pursuing original equipment manufacturer opportunities and plans to add dashcams.

What did IKIO report from automotive LED lighting?

IKIO reported about Rs 5 crore of automotive lighting revenue in Q2 FY27, which management identified as the first quarter of supplies in this category. Management confirmed the amount and timing when an analyst asked whether the Rs 5 crore represented the first commercial quarter for automotive lighting.

The new business was a small part of IKIO’s Rs 209 crore revenue from operations in Q2 FY27, but it was introduced during a broader diversification programme. Consolidated revenue increased 33% year on year and 23% quarter on quarter in Q2 FY27. Management said other business segments, including automotive lighting, hearables, wearables, solar energy solutions and advanced electronics, grew 47% year on year to Rs 289 crore in H1 FY27.

IKIO’s automotive product is the LED lamp, or light source, installed inside a vehicle lighting assembly rather than a finished headlamp or tail lamp. Management said the LED source is produced through an in-house process. This uses the company’s existing work in drivers, LEDs, electronics and manufacturing for lighting and non-lighting products.

Is IKIO supplying the aftermarket or vehicle manufacturers?

IKIO is currently supplying the automotive aftermarket, while management said it has opened a route to original equipment manufacturer, or OEM, business. In response to an analyst’s question, management said the company would work only in the aftermarket during the current quarter but viewed OEM supply as a larger market opportunity.

Management named Bosch, Motherson, Sumi and Minda among the large customers in the automotive category. IKIO did not disclose revenue by customer, order values, contract periods or the share of Q2 FY27 automotive sales attributable to any of them. It said certain automotive customers could become anchor customers within the automotive vertical, rather than at the consolidated-company level.

IKIO described its manufacturing approach as different from established vehicle-lighting producers that make complete headlamps, tail lamps or finished units. Management said some unorganised participants assemble products, whereas IKIO manufactures the LED source used within the lamp. This was management’s description of the market structure, not a disclosure of market share.

Why are automotive LED customer pickups exceeding plans?

IKIO said actual customer material pickups are exceeding initial plans because automotive lighting is shifting from conventional sources to LEDs. Management said customers are still assessing demand during that transition, so collection volumes can be above the quantity set out in their earlier plans.

Management gave a specific example in which material covered by a four-month plan was picked up in about one month. IKIO did not disclose an order book, backlog, monthly run rate or full-year automotive revenue target. The cited pattern nevertheless indicates that offtake in the first supply quarter exceeded customers’ initial planning assumptions.

The demand mechanism differs from a fixed production schedule because management discussed customer plans followed by higher material collection, rather than contracted volumes for a defined period. IKIO attributed the mismatch to the LED conversion in vehicle lighting. It did not quantify the size of the replacement market or provide a timetable for conversion from conventional lighting.

What automotive products will IKIO add next?

IKIO plans to add dashcams for automotive customers shortly, according to management. Hardeep Singh said the company was expanding product categories because dashcams use similar electronics, plastic and software capabilities to products IKIO already manufactures. Management did not disclose a launch date, confirmed order, volume or revenue estimate for dashcams.

The dashcam plan sits beside IKIO’s electronics manufacturing services, or EMS, activity. Management said 20% to 25% of EMS output is used for captive consumption and the remainder is supplied to external customers. It also said 100% of printed circuit boards, drivers and electronics for the lighting and non-lighting products it manufactures are made in-house, while certain components unavailable in India are imported.

IKIO is also developing electric-vehicle chargers for a non-lighting customer category. Management said research and development for chargers had been completed and the product was in trial runs, with results expected in a quarter or two. That plan is separate from the disclosed dashcam addition and has no stated sales target.

How does automotive lighting fit IKIO’s changing revenue mix?

Automotive lighting is included in IKIO’s lighting business, which management said represented about 75% of total revenue, with other businesses contributing about 25%. Conventional original design manufacturing, or ODM, home lighting contributed about Rs 45 crore, while the remaining lighting revenue included in-store lighting, automotive lighting and Middle East exports.

The mix changed as H1 FY27 revenue from operations reached Rs 378 crore and EBITDA rose 71% year on year to Rs 51 crore. EBITDA margin increased to 13.4% in H1 FY27 from 10.4% in H1 FY26, while profit after tax rose 80% year on year to Rs 24 crore. IKIO did not provide a separate automotive profit or margin figure.

Management described home-lighting ODM revenue as broadly steady from Q1 FY27 to Q2 FY27, unlike the growth expected in newer categories. It also said Middle East business grew about 70% to 80% quarter on quarter from Q1 FY27 to Q2 FY27 despite Gulf-region tensions. Automotive lighting and export activity are therefore among the areas management identified as contributors beyond conventional home lighting.

Conclusion

IKIO’s Q2 FY27 automotive LED launch has created a Rs 5 crore commercial revenue base within a lighting portfolio that management said accounts for about 75% of total revenue. Higher customer pickups than planned point to early demand during the shift to LED vehicle lighting, while the company’s in-house electronics, driver and plastic capabilities support its plan to broaden the offering.

The next disclosures to watch are the timing of dashcam supplies, evidence of progress from aftermarket sales to OEM business and the persistence of customer demand above plans. Management also said Block 2 could be fully commercialised by Q4 FY27 or Q1 of the following year, although utilisation will take longer as customers and new verticals are added.