IKIO Tech Q1 FY27 Results (NSE: IKIO)
Signal: Margin expansion
The read
The trajectory has inflected positively after the recent margin trough: consolidated EBITDA margin reached 15.5%, up 440bps YoY after 9.0%, 11.0% and 15.0% in the preceding three quarters, while revenue growth accelerated to 40.9%; however, the quarter-on-quarter PAT decline to ₹107.90 million and other income equal to 25.1% of PBT weaken earnings quality.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹169.29 Cr | 40.9% | -3.1% |
| EBIT | ₹18.76 Cr | 197.8% | |
| Net profit | ₹10.79 Cr | 409.0% | |
| EPS | ₹1.4 | 351.6% | |
| EBIT margin | 15.5% |
P&L walk
Consolidated revenue increased 40.9% YoY to ₹1602.89 million while gross margin expanded to 41.3% from 35.7%, EBITDA rose 96.3% to ₹261.90 million and EBITDA margin reached 15.5%; PAT attributable to owners rose 409.0% to ₹107.90 million, although ₹42.35 million of other income represented 25.1% of PBT.
Segments
The group is materially larger than the parent: consolidated revenue of ₹1602.89 million and EBITDA of ₹261.90 million versus standalone revenue of ₹448.40 million and EBITDA of ₹65.50 million, indicating subsidiaries are driving most operating scale and profit.
Key positives
- Consolidated revenue increased 40.9% YoY to ₹1602.89 million, sustaining the recovery from 19.7% YoY growth in Q3FY26 and 47.3% in Q4FY26.
- Gross margin expanded 560bps YoY to 41.3% as raw-material cost declined to 58.7% of revenue from 64.3%; the filing does not disclose whether this was input-cost, pricing or mix led.
- EBITDA rose 96.3% YoY to ₹261.90 million and EBITDA margin expanded 440bps YoY to 15.5%, continuing the margin recovery from 9.0% in Q1FY26 and 11.0% in Q2FY26.
- Finance costs declined 10.5% YoY to ₹18.57 million, while ₹1834.87 million of the ₹2123.12 million IPO equipment-capex allocation has been utilised.
Key concerns
- Consolidated PAT attributable to owners fell 34.6% sequentially to ₹107.90 million despite revenue remaining at ₹1602.89 million, indicating weaker sequential earnings conversion.
- Employee costs increased 51.8% YoY to ₹282.16 million, faster than revenue growth of 40.9%, lifting employee cost intensity to 17.6% of revenue.
- Standalone revenue grew only 15.9% YoY to ₹448.40 million and standalone EBITDA margin was 14.6%, so the consolidated recovery depends heavily on subsidiaries.
Earnings quality: includes non-operating other income
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