IKIO Partly Commercialises Noida Block II During Q2FY27

IKIO Technologies Limited partially commercialised its approximately 2 lakh sq ft Noida Block II in Q2FY27, following the May 2024 commercial start of Block I. IKIO is also progressing construction of approximately 1 lakh sq ft Block III, taking the two later-stage additions to approximately 3 lakh sq ft.

What is the status of IKIO's Noida Block II and Block III?

IKIO partially commercialised its approximately 2 lakh sq ft Noida Block II in Q2FY27, while describing the block as work in progress. The presentation does not state how much of Block II has entered commercial operation, its utilisation level, the remaining commissioning schedule or capital expenditure for the project.

Block I, also approximately 2 lakh sq ft, began commercial production in May 2024. Block III is approximately 1 lakh sq ft and its construction is progressing as planned, according to IKIO. The company does not provide a commercial-production date, product allocation or output capacity for Block III.

Blocks II and III together represent approximately 3 lakh sq ft of additional space, as shown in IKIO's facility overview. The presentation frames this area as capacity being added to support growth, but it does not convert the square footage into production volumes, revenue potential, headcount or identified customer orders.

How much manufacturing space does IKIO already operate?

IKIO reports five integrated operating facilities covering approximately 5 lakh sq ft before adding Blocks II and III. The network comprises a 42,517 sq ft Haridwar site, three older Noida sites of 1,12,077 sq ft, 80,000 sq ft and 57,171 sq ft, and the 2 lakh sq ft Noida Block I.

The Haridwar plant makes LED lights, regulators and switches. IKIO's 1,12,077 sq ft Noida facility produces refrigeration LED lighting and controls, LED modules, drivers and IPS controllers, while the 80,000 sq ft site makes regulators and switches and contains a tool room, injection moulding, powder coating and computer numerical control, or CNC, machining.

The 57,171 sq ft Noida facility makes recreational-vehicle LED lights, solar panels, acrylonitrile butadiene styrene, or ABS, pipes for recreational vehicles, and commercial lighting products for export. Block I adds LED home lighting, solar panel systems, amplifiers, fire panels, hearables, wearables and other electronics, extending the existing footprint beyond the older lighting and component lines.

Which products does the new Noida capacity support?

IKIO identifies LED home lighting, hearables and wearables, automotive lighting and other new product lines as the proposed activities for Block I. The approximately 2 lakh sq ft facility is intended to enhance exports and support development of new products for the domestic market, while the presentation does not specify equivalent production lines for Blocks II or III.

The new facility programme follows product additions in two recent fiscal years. IKIO added hearables and wearables in FY24, then automotive lighting, advanced electronics, printed circuit boards, or PCB, amplifiers and fire alarm systems in FY26. Its product offering spans more than 3,000 stock-keeping units, or SKUs, developed in-house.

IKIO describes a manufacturing chain covering design and development, tool and mould design, fabrication, assembly, and testing and validation. It says almost all mechanical components are manufactured in-house and lists surface-mount technology, auto-insertion, auto-glueing and lens sorting among its assembly equipment. A 200 kilovolt-ampere, or KVA, rooftop solar installation at the new facility is intended for captive consumption, although no generation or savings estimate is provided.

How does the expansion align with IKIO's revenue mix and exports?

IKIO's capacity expansion aligns with a reported shift toward its Other Business category. Other Business revenue rose to Rs 289.4 crore in H1FY27 from Rs 196.7 crore in H1FY26, while Home Lighting original design manufacturer, or ODM, revenue was Rs 88.6 crore, compared with Rs 87.7 crore a year earlier. Total revenue increased to Rs 378 crore from Rs 284.4 crore over the same periods.

Over the longer FY23 to FY26 comparison, Other Business revenue increased from Rs 117.4 crore to Rs 425.5 crore, while Home Lighting ODM revenue declined from Rs 241.4 crore to Rs 169.8 crore. Management says it has strategically reduced reliance on the traditional Home Lighting ODM business while expanding Other Business segments; it reports approximately 54% three-year compound annual growth in Other Business through FY26.

Export activity is also part of the stated rationale for Block I. Revenue from outside India increased to Rs 110.1 crore in FY26 from Rs 71.9 crore in FY25, and was Rs 56.6 crore in H1FY27. Outside India accounted for 15% of revenue mix as of H1FY27, compared with India at 85%; IKIO also says it entered the Gulf market for Product Display exports and began supplying industrial and solar products to energy services companies in the United States.

Conclusion

The Q2FY27 partial commercialisation of Block II is the next reported stage in IKIO's Noida build-out after Block I started production in May 2024. The approximately 3 lakh sq ft combined addition from Blocks II and III accompanies a broader product mix that includes lighting, consumer electronics, automotive lighting and advanced electronics, while Other Business revenue reached Rs 289.4 crore in H1FY27.

The next disclosed milestones are commercialisation of the remaining Block II area and completion of Block III, for which IKIO gives no date. Management's stated plan is to use the newer facilities for export growth and domestic new-product development, so future disclosures on commissioning, utilisation, output and customer ramp-up would indicate progress against that plan.