IZMO Q1 FY27: PAT up 103%, margin jumps to 25%

Bengaluru-based IZMO reports sharp profit growth

IZMO Limited, headquartered in Bengaluru, Karnataka, reported a strong set of consolidated numbers for the quarter ended June 30, 2026 (Q1 FY27). The company announced the results on August 14, 2026. Consolidated profit after tax (PAT) more than doubled year-on-year, while revenue from operations also grew at a double-digit pace. The quarter also showed a clear improvement in operating efficiency, reflected in a higher EBITDA margin. Alongside the financial update, the company also disclosed board approvals related to leadership roles.

Q1 FY27 results at a glance

For Q1 FY27, IZMO reported consolidated revenue from operations of ₹65.38 crore, compared with ₹56.51 crore in Q1 FY26. Consolidated PAT rose to ₹12.20 crore from ₹6.00 crore in the year-ago quarter. Consolidated EBITDA increased to ₹16.4 crore from ₹9.7 crore, as per the figures shared in the results snapshot. EBITDA margin expanded to 25.07% from 17.11%, an improvement of 796 basis points. The company also reported consolidated basic EPS of ₹8.15 for the quarter.

Profitability improved faster than revenue

The pace of profit growth was significantly higher than revenue growth in Q1 FY27. While revenue from operations rose 15.7% YoY, consolidated PAT increased 103.3% YoY. EBITDA also grew strongly, rising to ₹16.4 crore from ₹9.7 crore. The reported margin expansion to 25.07% indicates better operating leverage during the quarter. The company attributed the margin improvement to other operating expenses being kept in check, as mentioned in the performance note shared with the results.

Revenue and profit movement on a sequential basis

The data provided also highlights quarter-on-quarter movement versus the March 2026 quarter (Q4 FY26), showing a weaker sequential trend. IZMO reported revenue of ₹65.72 crore in June 2026 compared with ₹115.69 crore in March 2026, a decline of 43.19% QoQ. Operating profit was reported at ₹12.20 crore in June 2026 versus ₹16.62 crore in March 2026, a decline of 26.59% QoQ. Profit was reported at ₹12.20 crore in June 2026 compared with ₹17.30 crore in March 2026, down 29.48% QoQ. Separately, the company’s income statement snapshot shows March 2026 revenue from operations at ₹109.16 crore and total income at ₹115.69 crore, which aligns with the total-income figure shared in the sequential comparison.

FY26 full-year picture provides context

Beyond the quarter, IZMO’s FY26 numbers show growth in revenue but a softer operating profit compared with FY25. The company reported FY26 revenue of ₹299.63 crore versus ₹259.87 crore in FY25, a year-on-year increase of 15.30%. Over the same period, operating profit was ₹47.73 crore in FY26 compared with ₹53.72 crore in FY25. This means the latest quarter’s margin expansion is notable against a backdrop where full-year operating profit had declined year-on-year even as revenue rose. Investors tracking operating leverage will likely compare whether Q1’s margin improvement sustains through the year.

Consolidated vs standalone numbers in the release

The same results pack also disclosed standalone metrics for the quarter, which moved differently from the consolidated performance. Standalone revenue from operations was reported at ₹9.94 crore in Q1 FY27 versus ₹11.00 crore in Q1 FY26. Standalone PAT was ₹0.05 crore in Q1 FY27 compared with ₹0.27 crore in Q1 FY26. In contrast, consolidated revenue from operations for Q1 FY27 was ₹65.38 crore and consolidated PAT was ₹12.20 crore, indicating the key profitability movement is reflected at the consolidated level.

Operational metrics: client additions disclosed

Along with financial metrics, IZMO also disclosed client additions by geography. The company reported adding 117 new US clients and 53 new European clients. While the release does not break down revenue contribution by region, the client addition numbers provide a directional indicator of new account wins during the period. For investors, this metric is often tracked with revenue growth and margin movement to understand whether growth is broad-based or concentrated.

Corporate actions mentioned with the results

The results commentary also mentioned board approvals for leadership appointments. The company approved the re-appointment of Mrs. Kiran Soni as Whole-time Director and Mr. Sanjay Soni as Managing Director. No additional details were provided in the shared text on tenure, remuneration, or effective dates. Still, such disclosures are typically tracked for continuity in senior management during a period of financial change.

Key reported numbers (as disclosed)

QoQ context using the same results pack

What the numbers mean for market watchers

The Q1 FY27 print shows a clear year-on-year improvement in profitability, supported by a sharp expansion in EBITDA margin to 25.07%. At the same time, the sequential comparison highlights a decline from the March 2026 quarter on several measures, including total income and operating profit. FY26 full-year data adds another layer of context, with revenue growth accompanied by a lower operating profit versus FY25. Taken together, the latest quarter positions profitability as the key metric investors may track in upcoming updates, alongside any clarity on sustainability of margins and the mix between consolidated and standalone performance.

Conclusion

IZMO’s Q1 FY27 results showed consolidated PAT of ₹12.20 crore on revenue from operations of ₹65.38 crore, with profit rising much faster than revenue and margins expanding year-on-year. The company announced the results on August 14, 2026, and also disclosed leadership re-appointments and new client additions in the US and Europe. The next set of quarterly disclosures will be important to see how operating margins track against the FY26 trend and the sequential softness seen versus the March 2026 quarter.