IZMO Q1 FY27 Results (NSE: IZMO)
Signal: Margin expansion
The read
The key inflection is operating quality: consolidated EBITDA rose 57.5% YoY to ₹16.74 Cr and margin expanded 800bps to 25.6% after the recent Q1FY26 contraction, while revenue growth moderated to 15.7%; izmo Microsystems has held its higher ₹9.24 Cr quarterly revenue for a second quarter, but the parent-only business remains weak with PAT down 81.5% to ₹0.05 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹65.38 Cr | 15.7% | N/A |
| EBIT | ₹12.67 Cr | 97.0% | |
| Net profit | ₹12.2 Cr | 103.3% | |
| EPS | ₹8.15 | 102.2% | |
| EBIT margin | 25.6% |
P&L walk
Consolidated revenue was ₹65.38 Cr, +15.7% YoY, and EBITDA was ₹16.74 Cr, +57.5%, lifting EBITDA margin to 25.6% from 17.6%; EBIT rose 97.0% to ₹12.67 Cr and PAT rose 103.3% to ₹12.2 Cr, with earnings quality supported by low other income of ₹0.34 Cr.
Segments
The filing does not provide reportable Ind AS segments, but internal division data shows izmo Microsystems sustaining ₹9.24 Cr of quarterly revenue for a second consecutive quarter versus ₹3.81 Cr in Q2FY26, while FrogData remained stable and Q4FY26's elevated izmocars and izmostudio revenue normalised in Q1FY27.
Key positives
- Consolidated EBITDA increased 57.5% YoY to ₹16.74 Cr versus revenue growth of 15.7% to ₹65.38 Cr, expanding EBITDA margin by 800bps to 25.6%.
- Operating EBITDA increased 69.6% YoY to ₹16.39 Cr and operating EBITDA margin rose 796bps to 25.1%.
- izmо Microsystems generated ₹9.24 Cr revenue in Q1FY27, approximately 2.5 times its ₹3.7–₹3.8 Cr Q2FY26-Q3FY26 quarterly range and broadly sustaining the Q4FY26 step-up.
- Digital intelligence retained a 98.5% Gross Revenue Retention Rate and added 170 clients, including 117 in the United States and 53 in Europe and the United Kingdom.
- Export revenue of ₹56.10 Cr represented 85.8% of consolidated revenue, providing a predominantly international revenue base.
Key concerns
- Revenue growth of 15.7% YoY is slower than the 81.7% YoY surge recorded in Q4FY26, with izmocars revenue at ₹16.89 Cr and izmostudio at ₹24.11 Cr versus ₹28.75 Cr and ₹55.93 Cr respectively in Q4FY26.
- Standalone revenue declined 9.6% YoY to ₹9.94 Cr, standalone EBITDA fell 22.7% to ₹0.75 Cr and standalone PAT fell 81.5% to ₹0.05 Cr, showing that group earnings are concentrated outside the parent entity.
Research and educational content only. Not investment advice.