IKIO Technologies Q4 FY26: Diversification Drives Growth as Margins Expand

IKIO Technologies reported a strong finish to FY26, with Q4 revenue from operations rising to INR 165.4 crore, up 47% year on year. Operating profitability improved sharply as EBITDA reached INR 26.0 crore, translating into a 15.7% margin versus 5.5% in Q4 FY25. Profit after tax came in at INR 17.5 crore compared with a loss of INR 0.7 crore in the year-ago quarter.

For the full year, consolidated revenue from operations increased 23% to INR 595.3 crore. EBITDA grew 29% to INR 77.5 crore with a 13.0% margin, while PAT rose 28% to INR 41.6 crore.

A key theme in both the investor presentation and the earnings call was the company’s shift from being predominantly a lighting ODM player to a broader integrated technology solutions platform. This change is visible in the reported mix, where the “Other Business” bucket accounted for 71% of FY26 revenue and 77% of Q4 FY26 revenue.

The mix is changing: “Other Business” leads growth

IKIO’s reported split between Home Lighting ODM and Other Business shows the center of gravity moving away from the legacy home lighting ODM line.

In Q4 FY26, Other Business revenue was INR 127.4 crore versus INR 38.0 crore from Home Lighting ODM. For FY26, Other Business reached INR 425.5 crore while Home Lighting ODM was INR 169.8 crore.

Management explained that the decline visible in the Home Lighting ODM line was linked to a historically high dependence on a single customer, and the company has been adding more customers in lighting while building new verticals to reduce concentration risk.

Exports rise to 18% of revenue, Middle East offsets US softness

Geographic diversification also improved. Revenue from outside India increased 53% year on year to INR 110.1 crore in FY26, taking the share of ex-India revenue to 18% from 15% in FY25. The company stated it now has a footprint across 20+ countries.

Management highlighted that diversification in the Middle East helped sustain momentum during a period when the US market saw slower progress amid tariff uncertainty. In the investor presentation, IKIO also pointed to new supplies in the US beyond the RV segment, including industrial and solar products to energy services companies.

Capacity expansion and backward integration remain central to the strategy

A major pillar of the investment case is the company’s backward-integrated manufacturing model. The presentation detailed in-house capabilities across design and development, tooling and mould design, fabrication, assembly, and testing and validation.

The second pillar is capacity build-out funded through IPO proceeds. The company is adding significant manufacturing space via a greenfield facility in Noida:

• Block I of around 2 lakh sq. ft. was commissioned in May 2024.
• Block II of around 2 lakh sq. ft. is expected to be commercialized by end of Q1 FY27.
• Block III of around 1 lakh sq. ft. is under construction.

The company also indicated it has installed a 200 KVA solar rooftop panel at the new facility for captive use.

In the earnings call, management said around INR 35 to 36 crore of capex remains from IPO proceeds and is planned to be utilized in the current financial year.

New verticals: early traction, but working capital is a monitorable

IKIO’s non-lighting portfolio includes hearables and wearables, solar-related products, IPS controllers, and electronic components. Management said hearables and wearables started with a higher OEM mix and therefore carries lower margins currently, described as higher single-digit EBITDA margins. The stated plan is to shift the product mix toward ODM and reach double-digit margins over time.

Management also said the hearables and wearables segment will be moved directly under the parent company from the end of Q1 FY27, aimed at streamlining operations and improving efficiency.

On the balance sheet, consolidated inventories increased to INR 201.1 crore at March 2026 from INR 138.8 crore at March 2025, while cash equivalents declined to INR 57.6 crore from INR 109.7 crore. Management attributed working capital pressure to higher lead times and the need to hold multiple inventories because of component shortages and redesign requirements, and indicated this could persist for another 2 to 3 quarters.

What management guided for FY27

Management provided explicit commentary on the FY27 outlook:

• Revenue growth expectation of around 20% to 22% for FY27.
• EBITDA margin expected to remain broadly in line with FY26 full-year performance, with an explicit reference to 15% to 16% EBITDA levels during Q&A.
• Block II commissioning expected by end of Q1 FY27.

Takeaways

IKIO’s FY26 narrative is defined by a changing business mix and a sharp recovery in profitability through the year, culminating in strong Q4 margins. The company is scaling a platform that combines lighting with adjacent electronics categories, while exports and new markets such as the Middle East are becoming more meaningful.

Key monitorables from here are the commissioning of Block II on schedule, the pace at which new verticals scale to absorb fixed costs, and whether working capital normalizes as supply chains stabilize. Guidance of 20% to 22% growth with steady margins sets a measurable bar for FY27 execution.