Izmo H1 profit climbs 33% as revenue rises 13% in FY2027

IZMO Limited reported consolidated profit after tax of Rs 24.69 crore for the half year ended September 30, 2026, a 33% increase from Rs 18.56 crore a year earlier, while revenue from operations rose 13% to Rs 131.73 crore. Izmo also disclosed 107 client additions in the US and 13 in Europe including the UK.

How did Izmo perform in the first half of FY2027?

Izmo’s H1 profit increased faster than revenue, with profit before tax rising 32% to Rs 25.33 crore from Rs 19.17 crore in the half year ended September 30, 2025. Total income rose to Rs 133.82 crore from Rs 122.03 crore, even as other income declined to Rs 2.09 crore from Rs 5.41 crore.

The revenue increase was Rs 15.12 crore year on year, while profit after tax increased by Rs 6.13 crore. Basic and diluted earnings per share, which Izmo said were not annualised, rose to Rs 16.50 for the half year from Rs 12.52 in the corresponding period of 2025.

Expenses increased more slowly than revenue in the half year, rising 8% to Rs 108.49 crore from Rs 102.86 crore. Employee benefit expense increased to Rs 58.23 crore from Rs 55.93 crore, purchase of traded stock rose to Rs 5.10 crore from Rs 3.83 crore, and other expenses increased to Rs 36.68 crore from Rs 34.17 crore.

Depreciation and amortisation fell to Rs 8.08 crore from Rs 8.60 crore, partly offsetting a rise in finance cost to Rs 0.97 crore from Rs 0.83 crore. The filing records no exceptional or extraordinary item for either half-year period, while the prior full financial year ended March 31, 2025 included Rs 2.39 crore of such items.

Why was Izmo’s September-quarter profit lower than a year earlier?

Izmo’s profit after tax in the September 2026 quarter was Rs 12.50 crore, 0.5% below Rs 12.56 crore a year earlier, but 2.5% above the Rs 12.20 crore reported in the June 2026 quarter. September-quarter revenue from operations grew 10% year on year to Rs 66.35 crore from Rs 60.11 crore and increased 1% sequentially from Rs 65.38 crore.

The year-on-year profit comparison reflected higher expenses alongside revenue growth. Total expenses rose to Rs 54.97 crore in the September quarter from Rs 51.39 crore a year earlier, while profit before tax was nearly unchanged at Rs 13.13 crore compared with Rs 13.16 crore.

The sequential comparison included employee-cost items disclosed for the June quarter. Izmo said June-quarter employee benefit expense included a one-time settlement at its UK entity of GBP 370,000, equivalent to Rs 4.71 crore, plus a settlement and annual bonus at Izmo France of EUR 105,000, equivalent to Rs 1.15 crore.

Employee benefit expense consequently declined to Rs 25.67 crore in the September quarter from Rs 32.57 crore in the June quarter. However, the September quarter also carried Rs 0.63 crore of current and deferred tax expense, whereas the June quarter recorded no tax expense, limiting the sequential increase in profit after tax.

What do client additions and the balance sheet show for Izmo?

Izmo added 107 clients in the US market and 13 clients in Europe including the UK, according to the notes to its September 2026 results. The company operates in one reportable segment, so the filing does not identify the revenue, profit or contract value associated with the 120 stated client additions.

Total consolidated assets rose to Rs 532.39 crore at September 30, 2026 from Rs 493.82 crore at March 31, 2026. Trade receivables increased to Rs 144.41 crore from Rs 129.05 crore, other financial assets rose to Rs 82.85 crore from Rs 56.85 crore, and capital work-in-progress increased to Rs 7.17 crore from Rs 4.88 crore.

Cash and cash equivalents declined to Rs 9.08 crore at September 30 from Rs 10.29 crore at the March year-end. Total equity increased to Rs 435.43 crore from Rs 408.97 crore, comprising share capital of Rs 14.98 crore and other equity of Rs 420.45 crore.

Non-current borrowings fell to Rs 2.69 crore from Rs 3.57 crore, and non-current lease liabilities declined to Rs 1.00 crore from Rs 1.69 crore. Current liabilities increased to Rs 88.96 crore from Rs 75.14 crore, including other current liabilities of Rs 64.19 crore compared with Rs 54.24 crore at March 31.

How did Izmo convert its first-half profit into cash?

Izmo generated net cash from operating activities of Rs 7.39 crore in H1 FY2027, compared with Rs 3.87 crore in H1 FY2026, after reporting profit before tax of Rs 25.33 crore. Cash generated from operations rose to Rs 7.83 crore from Rs 4.69 crore, while direct taxes paid declined to Rs 0.44 crore from Rs 0.82 crore.

Working-capital movements absorbed a substantial part of operating profit. Trade receivables increased by Rs 15.36 crore, inventories increased by Rs 0.57 crore and short-term loans and advances increased by Rs 25.88 crore during the half year; these movements were partly offset by a Rs 13.84 crore increase in current liabilities and provisions.

Investing activities used Rs 6.07 crore, less than the Rs 15.90 crore outflow in the prior-year half. The H1 FY2027 outflow included Rs 3.95 crore for fixed-asset additions and Rs 2.29 crore of capital work-in-progress, while the prior period included Rs 12.61 crore of fixed-asset purchases and Rs 3.62 crore related to right-of-use assets.

Financing activities used Rs 2.52 crore in H1 FY2027, compared with an inflow of Rs 0.42 crore a year earlier. The current-period outflow included Rs 0.88 crore of long-term borrowing repayment, Rs 0.69 crore of lease-liability payments and Rs 0.97 crore of interest paid, producing a Rs 1.21 crore decrease in cash and cash equivalents.

Conclusion

Izmo’s September 2026 half-year results show profit after tax rising faster than revenue, with Rs 24.69 crore of profit on Rs 131.73 crore of revenue. The filing also records 120 client additions in the US, Europe and the UK, while operating cash flow improved to Rs 7.39 crore despite increases of Rs 15.36 crore in receivables and Rs 25.88 crore in short-term loans and advances.

The next results will show whether the September-quarter revenue level of Rs 66.35 crore is sustained and whether the disclosed client additions contribute to further reported growth. The limited-review report also states that balances of sundry debtors, inventories, loans and advances, and current liabilities are subject to confirmation and reconciliation; Izmo’s board approved the unaudited results on November 13, 2026.