IKIO H1FY27 revenue rises 33% as EBITDA climbs 71% year on year

IKIO Technologies Ltd (IKIO) reported Rs 378 crore of revenue in H1FY27, 33% higher year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 71% to Rs 50.8 crore as gross margin increased to 40.3% from 35.7%. The result reflected faster growth in Other Business, which rose 47% to Rs 289.4 crore.

How did IKIO perform in H1FY27?

IKIO increased H1FY27 revenue to Rs 378 crore from Rs 284.4 crore in H1FY26, with gross profit rising 50% to Rs 152.4 crore. EBITDA grew faster than sales, reaching Rs 50.8 crore from Rs 29.7 crore, and the EBITDA margin increased by 3 percentage points to 13.4% from 10.4%.

Profit after tax (PAT) was Rs 23.9 crore in the first half of FY27, compared with Rs 13.3 crore a year earlier, an 80% increase. Profit before tax more than doubled to Rs 36 crore from Rs 17.7 crore, while cash profit after tax (Cash PAT) increased 43% to Rs 39.6 crore from Rs 27.7 crore. Diluted earnings per share rose to Rs 2.94 from Rs 1.72.

What drove IKIO's H1FY27 revenue growth?

IKIO's Other Business generated Rs 289.4 crore in H1FY27, up 47% from Rs 196.7 crore in H1FY26, and accounted for nearly all of the Rs 93.6 crore increase in consolidated revenue. Home Lighting original design manufacturing (ODM) revenue was broadly stable at Rs 88.6 crore, compared with Rs 87.7 crore in the previous first half.

The segment mix has shifted over a longer period as well. Other Business rose from Rs 117.4 crore in FY23 to Rs 425.5 crore in FY26, a three-year compound annual growth rate stated by management as approximately 54%, while Home Lighting ODM revenue declined from Rs 241.4 crore to Rs 169.8 crore over the same period. Management said it has reduced reliance on the traditional Home Lighting ODM business while expanding other segments.

In the second quarter, consolidated revenue was Rs 208.7 crore, 27% above Rs 164.2 crore in Q2FY26 and 23% above Rs 169.3 crore in Q1FY27. Other Business increased to Rs 162.5 crore from Rs 115.2 crore year on year, whereas Home Lighting ODM revenue declined to Rs 46.2 crore from Rs 49 crore. This comparison shows that the quarterly increase also came from Other Business rather than from the legacy lighting ODM segment.

How did IKIO's margins and profit change?

IKIO's H1FY27 gross margin reached 40.3%, up 4.6 percentage points from 35.7% in H1FY26, as gross profit increased Rs 51 crore while raw-material expense increased Rs 42.7 crore to Rs 225.6 crore. Management attributed the year-on-year profitability improvement to revenue growth and operating leverage.

Operating expenses also rose during the half year, with employee expenses increasing to Rs 59.1 crore from Rs 40.9 crore and other operating expenses reaching Rs 42.4 crore from Rs 30.8 crore. Even so, the Rs 21.1 crore EBITDA increase exceeded the combined Rs 19.8 crore increase in those two cost lines, alongside the higher gross profit.

The quarterly comparison was more mixed at the gross-margin level. Q2FY27 gross margin was 39.2%, below Q1FY27's 41.7%, but above Q2FY26's 35.0%; Q2 EBITDA margin was 13.4%, slightly below 13.5% in Q1FY27 and above 11.2% a year earlier. Q2 PAT margin was 6.2%, versus 6.5% in Q1FY27 and 6.6% in Q2FY26, although Q2 PAT increased 18% year on year to Rs 12.9 crore.

What changed in IKIO's balance sheet by September 2026?

IKIO's total assets rose to Rs 827.4 crore at September 2026 from Rs 767.2 crore at March 2026. Current assets increased Rs 65.2 crore to Rs 478.9 crore, led by inventories rising Rs 29.2 crore to Rs 230.3 crore and debtors increasing Rs 33.5 crore to Rs 166.5 crore; cash equivalents and bank balances fell Rs 16.8 crore to Rs 40.8 crore.

Current liabilities increased to Rs 168.9 crore from Rs 131.5 crore across the same dates. Current borrowings rose to Rs 60.9 crore from Rs 39.9 crore, trade payables rose to Rs 54.6 crore from Rs 45 crore, and other financial liabilities increased to Rs 24.5 crore from Rs 17.1 crore. Total equity rose Rs 24.8 crore to Rs 634.2 crore, comprising unchanged share capital of Rs 77.3 crore and other equity of Rs 556.9 crore.

Non-current assets declined marginally to Rs 348.5 crore from Rs 353.4 crore, despite plant, property and equipment increasing to Rs 176.7 crore from Rs 148.2 crore. Capital work in progress declined to Rs 82.5 crore from Rs 95.6 crore, while other non-current assets fell to Rs 31.2 crore from Rs 49.1 crore. These movements occurred while IKIO partially commercialised Block II of its new facility in Q2FY27.

Conclusion

IKIO's H1FY27 result combined 33% revenue growth with a 71% increase in EBITDA, as the 4.6-percentage-point gross-margin expansion and operating leverage lifted EBITDA margin to 13.4%. Other Business added Rs 92.7 crore of revenue year on year, while Home Lighting ODM added Rs 90 lakh, making segment diversification central to the reported growth pattern.

What to watch next is execution of IKIO's disclosed approximately 5 lakh-square-foot greenfield capacity programme, funded with initial public offering proceeds, for new-age products, exports and backward integration. Block I of approximately 2 lakh square feet was commercialised in May 2024 and Block II, also approximately 2 lakh square feet, was partially commercialised in Q2FY27; inventory, debtors and current borrowings had all increased by September 2026.