IKIO Technologies Q2 profit rises 18% on 27% revenue growth

IKIO Technologies Limited reported consolidated net profit of Rs 12.857 crore for the quarter ended September 30, 2026, up 18% from Rs 10.891 crore a year earlier, as revenue from operations rose 27% to Rs 208.722 crore. For the half year, net profit increased 80% to Rs 23.903 crore, although operating cash flow turned negative.

How did IKIO Technologies perform in the September quarter?

IKIO Technologies increased revenue, pre-tax profit and net profit in the quarter ended September 30, 2026. Revenue from operations reached Rs 208.722 crore, compared with Rs 164.216 crore in the quarter ended September 30, 2025, while total income rose to Rs 210.141 crore from Rs 168.539 crore. The consolidated results cover the group’s single reported business segment, manufacturing of LED lighting.

Profit before tax rose 41% to Rs 19.056 crore from Rs 13.472 crore, while net profit after tax increased by Rs 1.966 crore to Rs 12.857 crore. Total comprehensive income was Rs 13.021 crore, compared with Rs 11.226 crore a year earlier. Basic earnings per share, based on equity shares with a face value of Rs 10 each, increased to Rs 1.54 from Rs 1.41.

On a sequential basis, September-quarter revenue was Rs 39.433 crore above Rs 169.289 crore in the quarter ended June 30, 2026. Net profit rose from Rs 11.046 crore and profit before tax increased from Rs 16.900 crore in the preceding quarter. Profit attributable to owners of the holding company was Rs 11.936 crore in the September quarter, compared with Rs 10.790 crore in June.

What changed in IKIO Technologies’ quarterly expenses?

IKIO Technologies’ total expenses rose 23% year on year to Rs 191.085 crore in the September 2026 quarter from Rs 155.067 crore, while total income increased by Rs 41.602 crore. Cost of materials consumed, the largest reported expense line, increased to Rs 117.394 crore from Rs 98.141 crore. The difference between the income and expense increases resulted in a Rs 5.584 crore rise in profit before tax.

Employee benefits expense increased 39% to Rs 30.920 crore from Rs 22.305 crore, and other expenses rose 37% to Rs 22.894 crore from Rs 16.728 crore. Depreciation and amortisation expense increased to Rs 8.240 crore from Rs 7.378 crore. Purchases of stock in trade were Rs 9.232 crore, marginally below Rs 9.284 crore in the corresponding quarter.

Finance costs were Rs 2.057 crore, compared with Rs 1.859 crore a year earlier. Current tax, including earlier years, was Rs 7.425 crore against Rs 4.312 crore, while deferred tax was a credit of Rs 1.226 crore compared with a credit of Rs 1.686 crore. The reported total tax expense consequently rose to Rs 6.199 crore from Rs 2.581 crore, limiting the increase in net profit relative to the pre-tax gain.

What do IKIO Technologies’ first-half results show?

IKIO Technologies reported first-half revenue growth of 33% and net-profit growth of 80% for the six months ended September 30, 2026. Revenue from operations was Rs 378.011 crore, against Rs 284.353 crore in the corresponding six months of 2025. Net profit after tax reached Rs 23.903 crore, compared with Rs 13.268 crore in the earlier half year.

First-half profit before tax more than doubled to Rs 35.956 crore from Rs 17.696 crore. Total income rose to Rs 382.728 crore from Rs 290.724 crore, while total expenses increased to Rs 346.772 crore from Rs 273.028 crore. Basic and diluted earnings per share were both Rs 2.94, compared with Rs 1.72 for both measures in the prior-year period.

Materials consumed rose by Rs 46.343 crore to Rs 211.494 crore during the latest half year. Employee benefits expense increased to Rs 59.136 crore from Rs 40.890 crore, and other expenses rose to Rs 42.441 crore from Rs 30.836 crore. Finance costs were nearly unchanged at Rs 3.914 crore, compared with Rs 3.934 crore, while depreciation and amortisation increased to Rs 15.675 crore from Rs 14.422 crore.

What changed in IKIO Technologies’ balance sheet?

IKIO Technologies’ total assets were Rs 827.428 crore at September 30, 2026, compared with Rs 767.174 crore at March 31, 2026. Total equity, including non-controlling interests, rose to Rs 634.207 crore from Rs 609.371 crore. Total liabilities increased to Rs 193.221 crore from Rs 157.803 crore over the same six-month period.

Current assets increased to Rs 478.927 crore from Rs 413.738 crore. Inventories rose by Rs 29.206 crore to Rs 230.312 crore, while trade receivables increased by Rs 33.518 crore to Rs 166.533 crore. Cash and cash equivalents were Rs 23.566 crore, up from Rs 21.751 crore, whereas bank balances other than cash and cash equivalents declined to Rs 17.273 crore from Rs 35.872 crore.

Current borrowings were Rs 60.901 crore at September 30, compared with Rs 39.887 crore at March 31. Trade payables due to creditors other than micro and small enterprises increased to Rs 42.055 crore from Rs 27.289 crore, while amounts due to micro and small enterprises fell to Rs 12.554 crore from Rs 17.756 crore. Non-current borrowings were Rs 1.641 crore, compared with Rs 1.310 crore at the March year-end.

What did cash flow and the auditor’s review show?

IKIO Technologies reported net cash used in operating activities of Rs 4.345 crore in the half year ended September 30, 2026, compared with net cash generated of Rs 5.101 crore in the corresponding prior-year period. The cash-flow statement records Rs 36.118 crore used in trade receivables and Rs 28.261 crore used in inventories. These outflows were partly offset by a Rs 10.702 crore increase in trade payables.

Investing activities used Rs 8.533 crore, compared with Rs 2.879 crore used a year earlier, including Rs 27.963 crore spent on property, plant and equipment, intangible assets and capital advances. Financing activities generated Rs 14.693 crore, versus Rs 2.060 crore used in the previous half year, led by a Rs 19.914 crore increase in short-term bank borrowings. Cash and cash equivalents therefore increased by Rs 1.815 crore during the period to Rs 23.566 crore.

The statutory auditor issued a limited-review conclusion dated November 5, 2026 and stated that nothing had come to its attention indicating a material misstatement in the consolidated statement. The report identifies eight subsidiaries in the group. It also says one subsidiary’s financial results were not reviewed by an auditor and were prepared by management, while another subsidiary’s results were reviewed by another auditor under International Financial Reporting Standards before adjustment for Indian Accounting Standards.

Conclusion

IKIO Technologies delivered higher revenue and profit in both the September quarter and the first half of the financial year. Revenue growth of 27% in the quarter exceeded the 23% increase in total expenses, lifting profit before tax by 41%, while first-half net profit rose to Rs 23.903 crore from Rs 13.268 crore despite higher materials, employee and other expenses.

The unresolved matter to watch in subsequent disclosures is working-capital cash conversion. Inventories and trade receivables rose to Rs 230.312 crore and Rs 166.533 crore, respectively, at September 30, 2026, and first-half operating cash flow was an outflow of Rs 4.345 crore. The filing does not disclose a forward target or planned date for addressing those movements.