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    IZMO

    IZMO
    Information Technology·17 Nov 2025
    Management Summary

    IZMO Limited reported a steady Q2 FY26 with revenue of INR 60.11 crores, up 2.65% YoY, and a significant 42.4% YoY increase in EBITDA to INR 13.51 crores, driven by cost optimization and growth in new divisions. The company achieved a breakthrough in silicon photonics packaging and received DSIR recognition, positioning it for future growth in AI infrastructure. While the legacy automotive business faced headwinds, the IzmoMicro division's order book doubled to INR 50 crores, with plans for substantial expansion and funding.

    Highlights

    5

    • Q2 FY26 Revenue of INR 60.11 crores, up 2.65% YoY, driven by expanding clientele.

    • Q2 FY26 EBITDA (excl. other income) surged 42.4% YoY to INR 13.51 crores, achieving a 22.5% margin.

    • H1 FY26 Revenue grew 9.8% YoY to INR 116.62 crores, with EBITDA up 23.4% YoY to INR 18.79 crores.

    • IzmoMicro order book doubled from INR 25 crores to INR 50 crores, with execution expected in nine months.

    • Achieved a breakthrough in 32-channel high-density silicon photonics packaging and received DSIR recognition for in-house R&D.

    Concerns

    3

    • Legacy automotive business growth was subdued due to global economic volatility and tariff issues.

    • IzmoMicro's planned expansion requires a substantial fundraise of INR 150-200 crores, with the fab project having a 2-3 year timeline.

    • Difficulty in quantifying future revenue from new photonics initiatives due to their early stage and dependence on execution.

    Key financials

    Metrics

    6

    Periods

    2

    Headline

    3
    • H1 FY26 Revenue
      ₹116.62 Cr
      YoY+9.8%
    • H1 FY26 EBITDA (excl. other income)
      ₹18.79 Cr
      YoY+23.4%
    • H1 FY26 PAT
      ₹18.56 Cr

    Q2 FY26

    3
    • Revenue
      ₹60.11 Cr
      YoY+2.6%
    • EBITDA (excl. other income)
      ₹13.51 Cr
      YoY+42.4%
    • PAT
      ₹12.56 Cr

    Order Book

    high confidence

    Total Value

    ₹ 50 crores

    as of 2025-09-30

    quantified
    100.0% QoQ

    Inflow this qtr

    ₹ 25 crores

    Execution

    next nine months

    "The IzmoMicro order book has doubled to INR 50 crores, with management noting large demand from international and domestic clients, pushing for ramp-up faster than envisaged."

    Source:
    Q&A

    Capital allocation

    1
    medium confidence
    CategoryHeadline
    Capex

    ₹150 crores

    Substantial amount from government, good state subsidy, very little investment from company side. Potential for 50% capex subsidy under ISM.

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    IzmoMicro Revenue
    INR 200 crores
    		Medium
    Revenue
    IzmoMicro Revenue (with new facility)
    Up to INR 1,000 crores
    		Medium
    Revenue
    Legacy Business Revenue Growth
    10-15%
    		Medium
    Margin
    IzmoMicro EBITDA Margin
    25-30%
    		High
    Margin
    Overall EBITDA Margin
    20-25%
    		High
    Profitability
    IzmoMicro Breakeven
    Breakeven
    		High

    IzmoMicro Fab Project Report Submission & Government Approval

    within 6-9 months
    CurrentProject report being prepared
    TargetProject report submitted to government, initial approval process underway

    Why it matters

    This is the critical first step for securing government funding and subsidies for the large-scale photonics fabrication unit.

    This will take around 2 to 3 years because it's a massive project. We have started working on the project report first, which will go to the government. They will take, I would say, 6 to 9 months to go through it.

    How to verify

    capital_allocation.capex.purposes[description='Silicon photonics fabrication unit (total project cost)']

    Risks & concerns

    3
    RiskSeverity

    Global economic volatility and tariff issues impacting automotive business

    Despite ongoing global economic volatility and evolving industry dynamics, we have maintained our growth trajectory... The market in the U.S. and Europe has been subdued overall because with so much of confusion created by tariffs and all that mess... — Management acknowledged

    medium

    Long lead times and complexity for silicon photonics fab project

    This will take around 2 to 3 years because it's a massive project... it's very important for us to do the right machine selection, which will keep us relevant up to 10 years. — Management acknowledged

    medium

    Execution risk for IzmoMicro expansion and revenue targets

    It literally hinges on execution end of the day. So that's why we have a good team... if we execute right, we should achieve those numbers in Izmo Micro. — Management acknowledged

    medium

    Q&A highlights

    8

    “No, we are actually targeting OEMs in the US market... We don't really need much of investment. It's more of leveraging what we already have.”

    Clarifies the strategy for US expansion, indicating organic growth focused on OEMs rather than significant new capital deployment.

    asked by Agastya Dave

    2 min read7 chapters

    Detailed Narrative

    01

    Q2 & H1 FY26 Financial Performance

    IZMO Limited reported Q2 FY26 revenue of INR 60.11 crores, a 2.65% YoY increase, driven by expanding clientele in the US and Europe. EBITDA (excluding other income) surged 42.4% YoY to INR 13.51 crores, with a margin of 22.5%. For H1 FY26, revenue grew 9.8% YoY to INR 116.62 crores, and EBITDA increased 23.4% YoY to INR 18.79 crores, achieving a 23.4% margin. PAT for Q2 was INR 12.56 crores (20.9% margin) and for H1 was INR 18.56 crores (15.92% margin).

    02

    Strategic Focus on IzmoMicro and Silicon Photonics

    The company achieved a breakthrough in 32-channel high-density silicon photonics packaging, positioning India on the global semiconductor map. This division, IzmoMicro, is seen as a massive growth driver, targeting the $10 billion+ silicon photonics market by 2030. The order book for IzmoMicro has doubled from INR 25 crores to INR 50 crores, with execution expected within the next nine months.

    03

    IzmoMicro Expansion and Funding Plans

    To meet the large demand, IZMO plans to raise INR 150-200 crores for an advanced packaging facility, with a potential to generate up to INR 1,000 crores in revenue from this segment in the long term. The company is also exploring setting up a silicon photonics fabrication unit, a 2-3 year project with an estimated cost of INR 150-200 crores, heavily supported by government funding and subsidies (up to 50% capex subsidy).

    04

    Legacy Automotive Business Performance and Outlook

    The traditional automotive business (izmoStock, izmoAuto, FrogData) experienced subdued growth due to global economic volatility and tariff issues in the US and Europe. Despite this, izmoAuto acquired 22 new clients in Europe and is completing a major OEM contract for 900 dealer sites. Management expects a 10-15% steady growth for the legacy business in the next year once market conditions stabilize.

    05

    AI Integration and Cost Optimization

    IZMO is actively using AI tools to automate processes and replace high-cost personnel, aiming for a leaner and more profitable operation. The company launched izmo.ai, an innovation hub for AI applications in the automotive industry, leveraging India's AI talent and cost advantage. This strategy contributed to the improved EBITDA margins observed in Q2 FY26.

    06

    DSIR Recognition and R&D Capabilities

    The company received recognition from the Department of Scientific and Industrial Research (DSIR) for its in-house R&D unit. This recognition validates IZMO's leadership in advanced semiconductor packaging and research, spanning RF MEMs, power, and photonics packaging. It has also led to increased inquiries from Defense Public Sector Undertakings (DPSUs) for indigenization projects.

    07

    Talent Development for Advanced Technologies

    Recognizing the specialized nature of silicon photonics, IZMO is investing in in-house training programs to develop the required talent. The company leverages India's strong talent pool in electronics and is training engineers specifically for silicon photonics, ensuring a skilled workforce for its advanced technology ventures.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.