IKIO Tech Q2 FY27 Results (NSE: IKIO)
Signal: Growth decelerated
The read
The trajectory has inflected positively: Q2FY27 delivered ₹2,087.22 million revenue, +27.1% YoY, and a 13.4% derived EBITDA margin, extending the margin-expansion streak to four quarters; however, EPS grew only 9.2% versus 19.0% owner-attributable PAT growth, and rising inventories and receivables alongside negative standalone H1 operating cash flow remain the main quality concern.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹208.72 Cr | +27.1% | +23.3% |
| Net profit | ₹12.86 Cr | +18.0% | |
| EPS | ₹1.54 | +9.2% | |
| EBIT margin | 13.4% |
P&L walk
Consolidated revenue increased to ₹2,087.22 million, +27.1% YoY and +23.3% QoQ; gross margin expanded to 39.2% from 35.0% as direct material intensity fell, while derived EBITDA rose to ₹279.34 million and margin improved to 13.4%; PAT increased 18.0% to ₹128.57 million, but owner-attributable PAT growth was 19.0% and EPS growth lagged at 9.2%.
Segments
The group reports one segment, LED lighting manufacturing; the key divergence is between consolidated revenue of ₹2,087.22 million, +27.1% YoY, and standalone revenue of ₹673.16 million, +37.4% YoY, while consolidated PAT rose 18.0% but standalone PAT fell 9.1%.
Key positives
- Consolidated revenue reached ₹2,087.22 million, +27.1% YoY and +23.3% QoQ, accelerating from ₹1,642.16 million in Q2FY26.
- Gross margin expanded 421bps YoY to 39.2% as direct material intensity declined 421bps to 60.8% of revenue; the filing does not identify the driver.
- Derived EBITDA rose 34.0% YoY to ₹279.34 million and margin expanded 70bps to 13.4%, marking the fourth consecutive quarter of YoY margin expansion.
- Finance cost grew 10.6% YoY to ₹20.57 million, materially slower than revenue growth of 27.1%.
Key concerns
- EPS rose only 9.2% YoY to ₹1.54 against 19.0% growth in owner-attributable PAT to ₹119.36 million, reflecting higher non-controlling-interest allocation.
- Standalone operating cash flow was negative ₹169.73 million in H1FY27 versus positive ₹152.72 million in H1FY26, driven by inventory and receivables outflows.
- Consolidated inventories stood at ₹2,303.12 million and trade receivables at ₹1,665.33 million at September 30, 2026, up from ₹2,011.06 million and ₹1,330.15 million respectively at March 31, 2026.
- Standalone PAT declined 9.1% YoY to ₹44.44 million despite standalone revenue growth of 37.4% to ₹673.16 million.
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