IZMO reports Q2 growth, outlines ambitious photonics expansion plans

IZMO Limited announced a strong performance for Q2 and H1 FY26. Q2 FY26 revenue reached INR60.11 crores, a 2.65% year-on-year rise, fueled by expanding clientele in the US and Europe, along with contributions from Geronimo and izmo Microsystems. The company's EBITDA, excluding other income, surged 42.4% year-on-year to INR13.51 crores in Q2 FY26, with an EBITDA margin of 22.5%. For H1 FY26, revenues totaled INR116.62 crores, up 9.8% year-on-year, and EBITDA grew 23.4% year-on-year to INR18.79 crores, achieving a 23.4% EBITDA margin. PAT for Q2 FY26 was INR12.56 crores, with an EPS of INR8.43.

The company is strategically focused on its izmoMicro division, targeting INR200 crores in revenue within the next two to three years, with an order book currently at INR50 crores to be implemented over nine months. IZMO anticipates achieving breakeven in izmoMicro this year and 30-40% gross margins, with at least 25% EBITDA, from next year onwards. A significant capital expenditure of INR150-200 crores is planned for a new photonics fabrication unit, potentially eligible for a 50% government subsidy under the ISM, with an expected two to three year setup timeline.

IZMO projects overall yearly growth of 25-30% and expects EBITDA margins between 20-25% for its other businesses, with izmoMicro contributing 30% or more. The company also confirmed its commitment to cash flow generation, anticipating a substantial increase in cash generation from next year.