IZMO Limited first-half profit rises 33% to Rs 24.69 crore

IZMO Limited reported consolidated profit after tax of Rs 24.69 crore for the half year ended September 30, 2026, up 33% from Rs 18.56 crore a year earlier, as revenue from operations rose 13% to Rs 131.73 crore. Profit before tax increased to Rs 25.33 crore from Rs 19.17 crore.

How did IZMO perform in the first half of 2026-27?

IZMO’s first-half profit after tax rose by Rs 6.13 crore year on year, while revenue from operations increased by Rs 15.12 crore. Revenue reached Rs 131.73 crore in the half year ended September 30, 2026, against Rs 116.62 crore in the corresponding half of 2025-26, and total income rose to Rs 133.82 crore from Rs 122.03 crore.

Total expenses increased 5% to Rs 108.49 crore from Rs 102.86 crore, a slower rate than the 13% growth in revenue from operations. Consequently, profit before tax rose 32% to Rs 25.33 crore from Rs 19.17 crore, while basic and diluted earnings per share, which were not annualised, increased to Rs 16.50 from Rs 12.52.

Other income declined to Rs 2.09 crore in the 2026 half year from Rs 5.41 crore a year earlier. The results notes also state that other income in financial year 2024-25 included Rs 30.53 crore of profit on the sale of a Whitefield, Bangalore property held by IZMO.

What changed between IZMO’s June and September quarters?

IZMO reported profit after tax of Rs 12.50 crore in the quarter ended September 30, 2026, compared with Rs 12.20 crore in the quarter ended June 30, 2026. Revenue from operations increased to Rs 66.35 crore in the September quarter from Rs 65.38 crore in the preceding quarter.

Employee benefit expense fell to Rs 25.67 crore in the September quarter from Rs 32.57 crore in the June quarter. Management said the June-quarter cost included one-time settlements at its UK entity of GBP 370,000, stated as Rs 4.71 crore, and a settlement and annual bonus at its France entity of Euros 105,000, stated as Rs 1.15 crore.

Other expenses moved higher, rising to Rs 22.47 crore in the September quarter from Rs 14.20 crore in the June quarter. Purchase of traded stock, reported as direct cost, declined to Rs 2.41 crore from Rs 2.69 crore, while finance cost increased to Rs 0.50 crore from Rs 0.48 crore.

Against the quarter ended September 30, 2025, September-quarter revenue from operations increased from Rs 60.11 crore to Rs 66.35 crore. Profit after tax was Rs 12.50 crore, compared with Rs 12.56 crore a year earlier, as total expenses rose to Rs 54.97 crore from Rs 51.39 crore.

What do IZMO’s client additions show about its markets?

IZMO said it added 107 clients in the US market and 13 clients in Europe, including the UK, in its results notes issued on November 13, 2026. The filing does not disclose revenue by geography, customer contract values, retention data or the revenue contribution of these client additions.

The consolidated group includes subsidiaries in the US, Europe, France, the UK, Singapore and Germany, as well as an Indian subsidiary. The limited-review report states that foreign subsidiaries recorded revenue of Rs 99.44 crore and net profit after tax of Rs 25.01 crore for the half year ended September 30, 2026.

IZMO operates in one reportable segment, according to the results notes. The filing therefore provides no separate revenue or profit disclosure for software, products, countries or individual group entities despite identifying US and European client additions.

What do IZMO’s cash flow and balance-sheet figures show?

IZMO generated net cash from operating activities of Rs 7.39 crore in the six months ended September 30, 2026, compared with Rs 3.87 crore in the six months ended September 30, 2025. Operating profit before working-capital changes increased to Rs 35.79 crore from Rs 30.00 crore.

Working-capital movements included a Rs 15.36 crore increase in trade receivables and a Rs 25.88 crore increase in short-term loans and advances. These outflows were partly offset by a Rs 13.84 crore increase in current liabilities and provisions, leaving cash generated from operations at Rs 7.83 crore before net direct taxes paid of Rs 0.44 crore.

Cash and cash equivalents stood at Rs 9.08 crore on September 30, 2026, down from Rs 10.29 crore on March 31, 2026. Investing activities used Rs 6.07 crore, including Rs 3.95 crore for fixed-asset purchases and Rs 2.29 crore for capital work in progress, while financing activities used Rs 2.52 crore.

Trade receivables were Rs 144.41 crore at September 30, 2026, compared with Rs 129.05 crore at March 31, 2026. Over the same period, non-current borrowings declined to Rs 2.69 crore from Rs 3.57 crore, while total equity increased to Rs 435.43 crore from Rs 408.97 crore.

What review matters accompanied IZMO’s results?

IZMO’s unaudited results for the quarter and half year ended September 30, 2026 were reviewed by the audit committee and approved by the board on November 13, 2026. The independent reviewer said balances of sundry debtors, inventories, loans and advances, and current liabilities remained subject to confirmation and reconciliation.

The reviewer stated that foreign-subsidiary results were included using management-certified accounts. Those subsidiaries accounted for Rs 99.44 crore of revenue and Rs 25.01 crore of net profit after tax in the September 2026 half-year consolidated results.

Share capital increased by Rs 1.77 lakh during the half year through the allotment of 17,745 employee stock-option plan shares to eligible employees, according to the notes. Separately, IZMO disclosed an issue of 50,726 shares on November 13, 2026 under its 2013 employee stock-option plan, taking total issued equity shares to 1,50,31,047.

Conclusion

IZMO’s first-half result shows profit after tax increasing faster than revenue, with profit rising 33% to Rs 24.69 crore and revenue from operations growing 13% to Rs 131.73 crore for the half year ended September 30, 2026. The quarter-on-quarter employee-cost reduction followed one-time UK and France payments recorded in the June 2026 quarter, while other income fell to Rs 2.09 crore from Rs 5.41 crore.

The next results will show whether the 107 US and 13 European, including UK, client additions translate into further revenue growth and whether the Rs 144.41 crore receivables balance changes after September 30, 2026. They may also provide an update on the confirmation and reconciliation of the balances identified in the limited review.