IKIO Technologies Ltd (NSE: IKIO) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Suyash Samant — Stellar Investor Relations Advisors
Hardeep Singh — Chairman and Managing Director
Sanjeet Singh — Whole-time Director
Analysts:
Unidentified Participant
Nilesh Sharma — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to IKO Technologies Limited Q3 and 9 months FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Suyesh Samanth from Stellar Investor Relations Advisor Private Limited. Thank you. And over to you sir.
Thank you. Good afternoon, everyone. Thank you for joining us today. Sorry to interrupt you sir. Yeah, voice is breaking. Can you please repeat? Yeah, sorry. Is it better now? Can I go ahead? Yes, this is better. Please go ahead.
Suyash Samant — Stellar Investor Relations Advisors
Okay, thank you. Thank you and good afternoon everyone and thank you for joining us today. We have with us today the senior management team of IQ Technologies Ltd. Mr. Hardeep Singh, Chairman and Managing Director. Mr. Sanjeev Singh, full time Director, CEO and CFO who will represent IQ Technologies Ltd. On the call now management will be sharing the key operating and financial highlights for the quarter and nine months ended 31 December 2025 followed by a question and answer session. Please note this call may contain some of the forward looking statements which are completely based upon the company’s beliefs, opinions and expectations.
As of today these statements are not a guarantee the performance and involve unforeseen risk and uncertainties. The company also undertakes no obligation to update any forward looking statement to reflect. I hand over the conference to. Thank you. And over to you sir.
Hardeep Singh — Chairman and Managing Director
Thank you all for joining the Beauty. Sorry to interrupt you sir. Your voice is breaking. Sir. We are unable to hear you. Sir. Will reconnect your line. Please wait. Ladies and gentlemen, please hold while we reconnect the management. Sam. T. Sam. Sa. Thank you for patiently waiting. We have the line for the management reconnected. Thank you. Over to you sir. Thank you all for joining the Q3 and 9 month FY26 earnings call. Our presentation has been uploaded on the stock exchange and I hope you have have a chance to look at it. I would like to highlight a few key developments before handing over the call to Mr. Sachit Singh for further details. First of all, to begin with, business performances in Q3FY26 the company continued to diversify its business mix while sustaining strong revenue momentum delivering 20% year on year growth to rupees 146 crores for nine month FY26. The revenue increased 15% year on year to rupees 430 crores driven by a broader customer base and expand product portfolio and enhance geographical presence.
Building on this momentum, the other businesses segment maintain enormous growth trajectory increasing 33% year on year to rupees 101 crore in Q3 FY26 and 46% year on year to rupees 298 crores in nine months FY26 in line with our diversification strategy, new products category including hearable variables are gaining steady traction supported by new clients with the sustained demand momentum. From geographical perspective, performance was led by strong demand in Middle east particularly Dubai. Consequently the revenue from outside India rose 57% year on year to rupees 90 crore in nine months FY26 despite macro headwinds in the USA amid off tariff uncertainty to further strengthen our market presence, the acquisition of a stake at 88% stake in GravesTech has enhanced companies marketing and distribution capabilities on high end lighting products enabling us to leverage experience leadership to expand market reach with minimal capital outlay.
As a result of these initiatives, revenue contribution from the other businesses segment increased from 70% in Q3FY26 from 63% in Q3FY25 and to 69% in 9 month FY26 from 55% in 9 month FY25 reflecting successful diversification beyond home writing ODM the position of the company for sustainable growth. Now I will request Mr. Sanjeev Singh to provide his thoughts on the quarter and discuss the financial.
Sanjeet Singh — Whole-time Director
Thank you, thank you Hardeep Ji. Allow me to highlight the key strategic initiatives undertaken during the quarter and the nine months ended aimed at accelerating growth along with updates on the strong progress achieved. Starting with our global footprint, revenue from outside India increased to rupees 90 crores in nine months FY26 up 57% year on year and now accounts for roughly 21% of the total revenue achieved despite a slowdown in the US amid tariff uncertainty. Building on this, the Gulf market continues to deliver strong momentum led by new client additions while the Dubai market continues to scale up and gain traction alongside geography, we are also strengthening our product diversification.
Our entry into hairables and wearables including products like earphones, smartwatches, speakers has been well received with growing demand supported by new client orders, moving to our greenfield manufacturing project, our 5 lakh square feet facility is progressing well. Block 1, which is 2 lakh square feet, was commercialized in May 2024 and civil construction for Block 2, roughly 2 lakh square feet is complete and is ready to start operational activities. Finally, we continue to deepen our focus on backward integration and operational excellence aimed at improving margins, maintaining quality and driving cost efficiencies across the organization. Now, coming to our financial performance and the utilization of our IPO proceeds, the company sustained strong growth Momentum in quarter three, FY26 and nine months.
FY26 with revenue increasing 20% year on year to rupees 146 crores. For nine months FY26 revenue stood at 430 crores reflecting a 15% year on year growth. In quarter three FY26, EBITDA increased by 47% year on year and 19% quarter on quarter to 22 crores with EBITDA margin expanding to 15% and improvement of 280 basis points year on year and 383 basis points quarter on quarter. In quarter three FY26, profit after tax grew 38% year on year to 11 crores with PAT margin expanding to 7.4% up 98 basis points year on year and 76 basis points.
Q on Q Cash PAC increased 27% year on year and 3% quarter on quarter to 19 crores. As we scale up for the next phase of growth, we have front loaded certain strategic expenses which are currently elevated. We expect these costs to normalize as we achieve greater scale and realize economies of scale. The IPO proceeds were utilized in line with our stated objectives. Debt repayment was completed immediately post IPO block 1 is now operational and civil construction for block 2 is ready to start operational activities. We have deployed approximately 83% of the IPO funds and remain on track to fully utilize the balance within the committed timeline.
In conclusion, our focus on diversification, global expansion and strategic investments strengthens our foundation for sustained growth. With that, we conclude the presentation and request the moderator to open the Q and A session. Thank you.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question comes from the line of Nilesh Sharma from Anantnath Skycon Private Limited. It seems that the participant has left the queue. Please wait. Participants who wish to ask questions may press star and one.
Our first question comes from the line of Deepak Karva from an individual investor. Please go ahead.
Unidentified Participant
Good evening, sir. So my question is regarding EBITDA and margin have shown a steady meaningful improvement over recent quarters. What have been the key contributor to expansion and what would you consider the sustainable EBITDA margin over the medium term?
Sanjeet Singh — Whole-time Director
Hi Mr. Deepak, thank you for asking this question. Yeah, as you can see, the gross margins have improved and if you look at the EBITDA margins also, they are now seeing an upward trend. So this is in line with our expectation. So the drop in the EBITDA margins earlier were due to the onboarding of expenses which we’ve been highlighting in the previous earning calls as well.
And that was expected because, you know, onboarding of expenses for a lot of new product categories, new factory that we have set up were happening and these were the reasons why the margins were sort of shrinking. So now that upward trend is basically happening due to the, you know, the efficiencies that we are achieving on and also the revenue that we see is increasing. So the new verticals have started giving in the revenue, although they are still new, I wouldn’t call them, you know, these numbers. As you know the trend going forward, we still hope to see some more improvement come to, you know, happen in the coming quarter as we gain more and more traction in the new vertical.
Unidentified Participant
Okay, got it, sir. And sir, my like the Gulf region, the presentation indicates the healthy performance in the Gulf region. Could you quantify this performance include a breakup between US and Middle east markets.
Sanjeet Singh — Whole-time Director
So as you know, currently, you know, the tariff situation in the US So our exports from India are very, very minimal as of now to the US Market. So whatever contribution has happened to from the export unit in India is mainly to, you know, the Gulf market. And if I talk of the US Market, we still had, you know, stocks, we still have some stocks there in the US Market which we continue to l liquidate.
That is because when you know, this situation regarding tariff came up. So that is when we planned some material and that is something which is ongoing as of now. But going forward we definitely hope to see some improvement in the tariff situation. But you know, fortunately our timing with the Middle east subsidiary was in our favor and that is how we are still able to maintain that growth which we highlighted during the presentation, which is outside of India. So all thanks to our Middle east operations that, that has continued the momentum going forward. And you know.
Yeah, so this FTA that India has signed with Europe, we believe that, you know, this is going to positively affect the relation with us also. And hopefully in the coming near future we will see some reductions in tariffs and likewise, you know, the material again from India will continue to flow to the US market.
Unidentified Participant
Okay.
Sanjeet Singh — Whole-time Director
So like we are actively pursuing diversification into markets such as UK and eu. Actually honestly speaking, not because of the fta, but we were also planning to enter in the European market. We are taking some baby steps as of now. I will, I would like to say that we are taking some baby steps so maybe in a couple of quarters you will hear something from us. But as of now I don’t want to talk about something where we are just planning to do something but that then again this was again planned before the announcement of this fta.
So we plan to take our, you know, our, the business that we are doing in the Middle east now, we plan to take it to other parts of the world and Europe being one market where we had initially thought. So this is something that we are thinking of right now. Okay sir. Thank you sir. Got it. Thank you. Thank you Mr. Deepak.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one at this time. Our next question comes from the line of Nilesh Sharma from Anantnath Skycon Private Limited. Please go ahead.
Nilesh Sharma — Analyst
Sir. Thank you so much for the opportunity and congratulations on improvement of margin. So my question is when we can expect the next 2 lakh square feet facility will be started?
Hardeep Singh — Chairman and Managing Director
It is already the construction is finished and assembly lines are coming in and we are waiting for some government approvals. I think by end of this coming quarter it will be finished. From the Q127 it will be done.
Nilesh Sharma — Analyst
But the same status was in last con call that construction and assembly line. What happened because of this, you know. This. Ngt, the graph and from Diwali. Onwards there is the NGT going on in this part of India construction ban. So we cannot do anything. So that is the only problem. But our interior works were still going on and that, you know, the progress is still in line with what we were expecting. So by quarter one the commercialization should start. I mean the commercial production should start in the block too because all the. Local assembly lines, everything. Okay. And so which kind of product we are going to produce at that these assembly line and for which vendor.
Hardeep Singh — Chairman and Managing Director
So here we are entering with like coming up with the expansion of our wearable hearables as well as automobile lighting.
Nilesh Sharma — Analyst
Okay, so do we have any order in hand regarding automobile lighting?
Hardeep Singh — Chairman and Managing Director
We already started this month. We have already started delivering the products to all the four or five big customers. So it is taking a very big momentum. So this month actually is going to be our first month for you know, actual sales. Up until now we were doing prototyping and all these things for all four, five customers who are, you know, majority stakeholders when it comes to the products which in. In which we are, you know, we’ll be supplying to them. So that was already underway since the past two, three quarters. And this month is going to be our first month again. The volumes are going to be relatively small because we are just starting. But we have very good pipeline going forward.
The discussions that we are having with these brands. So block two will be utilizing for the hairable wearable expansion and also the automotive.
Nilesh Sharma — Analyst
Okay, so any number that you can definitely. It is at very initial stage still any number we are expecting for Q this first quarter of automobile component, quarter. Quarter, you will be learning the numbers, the incremental numbers. So because we cannot see anything here. So once you either you can visit us or you can see that the development. What kind of development? So you can see the infrastructure. What kind of infrastructure? And I have visited your factory. That’s why I have visited your factory and it is definitely fabulous infrastructure.
Hardeep Singh — Chairman and Managing Director
No, no, it is already. Numbers will be good. We cannot give you any forward numbers. So the numbers will be good.
Hardeep Singh — Chairman and Managing Director
Okay. The budget that we provide in the next year will try and give some, you know, idea regarding what is the expectation out of this vertical.
Nilesh Sharma — Analyst
Okay. Okay. And sir, what will be the percentage of export in coming year?
Hardeep Singh — Chairman and Managing Director
It is increasing. Like Mr. Sanjeev told you that we in Middle east we are doing very good and that branch is expanding their arms in Europe as well because of this FTA signed by the governments. So we are very positive about the growth and exports as well.
Nilesh Sharma — Analyst
Okay. Any major capex that we required right.
Hardeep Singh — Chairman and Managing Director
Now we have already done a lot of. We have to see the fruit what we have invested first.
Sanjeet Singh — Whole-time Director
So now it is time to reap the benefits of what we’ve been investing. So like automotive again, you know, billing will start. So that is going to add to the revenue going forward. So all these new categories. We’ve been spending a lot of money in the back end. But now I think it’s time to, you know, these will. And the numbers will definitely. You’ll get to have an idea. So the, the growth that we are seeing right now 20% and 15% which is, you know, quarter on quarter and year on year. So that sort of reflects that.
You know, the initiatives that we have taken are, have somewhat now started to give the results.
Nilesh Sharma — Analyst
Okay. And similar EBITDA margin we can expect in automotive as well.
Hardeep Singh — Chairman and Managing Director
So you know, all different verticals. So what you, what you see right now is the consolidated number. So each vertical we have different EBITDA margins. Some are lower than the average, what you see right now, some are higher. But automotive, what, what I can say is that is definitely going to be, you know, similar to what we are achieving right now on the consolidated level. So it’s only going to add up to, you know, the ebitda.
Nilesh Sharma — Analyst
Okay. Okay. Thank you so much. Thank you.
Hardeep Singh — Chairman and Managing Director
Thank you. Thank you.
operator
Thank you. Our next question comes from the line of Sanjay Sood, an individual investor. Please go ahead.
Unidentified Participant
Thanks for giving me the opportunity. Kindly let me know which all customers you have added in last quarter.
Hardeep Singh — Chairman and Managing Director
So again.
Unidentified Participant
New customers you have added in last quarter.
Hardeep Singh — Chairman and Managing Director
As we told you that like in automobile all the four or five big customers, we are the rock, we are mother son and so on. We cannot like we have signed some NDAs with them as well. So we cannot disclose all the names here but all major and we are the first company in India to make those products in India. So that is the, that is how all these multinational and Indian companies are, are approaching us. And we are also participating in a big way in this month only in Auto Mechanica which is coming in Delhi ncr.
So we are participating in a big way in that exhibition as well. So there we are working on all the electronics of automobile, then lamps and so on and lighting. So we are working on multiple even we have developed all our EV chargers as well. So things are there for that market we have.
Sanjeet Singh — Whole-time Director
And in fact for the in store lighting division we, you know it’s a constant effort that we keep on adding brands that we work for. So in India we are working for I believe more than 150 odd brands. And in the Middle east it’s again a steady progress. We are adding new customers I would say each month. So today we are, if I’m not wrong, we are supplying to more than 50 to 70 odd brands in the Middle East. So it’s a constant effort. And each month we are adding new and new customers in the retail store lighting division as well.
And like Hazeep sir mentioned in the automotive, so automotive it’s a long cycle, you know, when you approach a brand approvals and everything. So we’ve Done all the hard work and that is how the production will start, you know, from this month.
Unidentified Participant
Okay. And present order book from Honeywell if you can.
Hardeep Singh — Chairman and Managing Director
They already approved all the products and because they there are a lot of certifications and approvals were there. So we got all already and we, we are starting getting the orders also orders, auto booking, everything is starting now.
Sanjeet Singh — Whole-time Director
So all these brands work on, you know, planning rather than an order book. So whenever we start a new product category or a new product for you know, any brand so we always have an idea what are the volumes the you know the brand is looking at for the entire year. And once the product is ready they start then placing orders and start giving us the planning for let’s say next six months or three. Three months. So that is how these brands generally work.
Unidentified Participant
And where can I find your product in the market say for hairables or variables because brands, we don’t know which brands you are making.
Hardeep Singh — Chairman and Managing Director
These items we are working with all again we have signed up NDAs. So we are working. There are four or five major brands in India. We are working all of them for all of them.
Unidentified Participant
Okay, thank you. That’s all.
Hardeep Singh — Chairman and Managing Director
Thank you. Thank you Mr. Sanjay.
operator
Thank you. Participants who wish to ask questions may press star and one now. Our next question comes from the line of Charchit Malu, an individual investor. Please go ahead.
Unidentified Participant
Hi sir. Am I audible?
Hardeep Singh — Chairman and Managing Director
Yes, yes, absolutely.
Unidentified Participant
Hi. I’m new to the company sir. So like just wanted to understand regarding the new capex that we are doing so like out of this two, out of like from block two, what is the percentage we are using for auto so out of the block to nearly around 60% of the space we are allocating to the hairable wearables segment because the current space was way too small, you know, for, for the kind of demand that we are seeing now. So we had, we didn’t anticipate you know, this kind of growth to be honest. So 60 of the space is going for the hairball wearable and remaining 40% right now will be for the automotive and in automotive it includes your electronics as well and also the automotive lighting.
Okay. And like what kind of optimal utilization you can achieve and like what’s the duration for that.
Hardeep Singh — Chairman and Managing Director
So if I talk of optimum utilization for hairable wearable it’s going to be let’s say to begin with because we’ll be shifting the entire operation here. So from day one they should be anywhere close to around 60% of their, you know, optimum utilization. Around 60% from what I, from what I understand and if I talk of the automotive that is going to slowly scale up because that is a completely new vertical. So the 40% space that the automotive will take up, I think within the next six months they should be somewhere close to around 40 to 50% efficiency or utilization in the next.
So like, so we are saying like from Q1F27 we will be using 60% of the what we say variable, variable and like after next and post that six months down the line 40 will be electronics.
Unidentified Participant
Are we seeing that?
Hardeep Singh — Chairman and Managing Director
Yeah. So 60 is going to of the space, 60% of the space is being allocated to herable, wearable and they will be somewhere close to around 55 to 65. 50, 55 to 60% of the optimum utilization in the first quarter next year and then 40% of space that we are, you know, will be utilizing for the other two segments that I mentioned and because that’s a new, completely new segment. So optimum utilization will happen in the maybe two to three quarters. So to begin with it’s going to be relatively, the utilization is going to be lower, but by 2 to 3/4 it should touch somewhere close to around 40 to 45 or 40 to 50% of like at max.
At max how? Like where we can reach in terms of utilization. Yes. So hairable variable should touch somewhere around 80% because you know, it’s a volume driven business. 80 to 85. And again likewise for the automotive, it’s again volume driven. It’s going to be volume driven and that also I think it should come somewhere close to around 80, 85. Thanks a lot. Okay. Okay, thank you. Thank you, Mr. Chacher.
operator
Thank you. Our next question comes from the line of Ravi Singh, an individual investor. Please go ahead.
Unidentified Participant
Yeah, hello. Am I audible?
Hardeep Singh — Chairman and Managing Director
Yeah, yeah, please go ahead.
Unidentified Participant
Yeah, hi. So first of all, congratulations on a good set of numbers, sir.
Hardeep Singh — Chairman and Managing Director
Thank you, Mr. Ravi.
Unidentified Participant
Yeah, so my questions are on the line of gross margins. So they have particularly recovered from to around 44% after being in the mid-30s overall the last two quarters. So how sustainable is this level going forward for us?
Hardeep Singh — Chairman and Managing Director
So looking at our current business mix and you know, the plan that we have in the coming quarters, what we believe that, you know, our sustainable gross margin should anywhere be between 40 to 45%. So that is what we expect from the business. And going forward we have certain plans and you know, once we achieve operational efficiencies in the newer vertical, so that is where, you know, the EBITDA and PBT margins are going to expand going forward.
Unidentified Participant
Okay. So on the similar lines as means, our consolidated performance also remains strong while the standalone numbers appeared a bit weaker. So some light on that. So what factors could be impacting our standalone performance and how is it expected to evolve?
Hardeep Singh — Chairman and Managing Director
So basically if you look at the standalone numbers, that pertains to, you know, the ODM lighting business, which we have discussed in length in the previous earnings call. So basically in a nutshell, as you know that our business in the ODM segment was we were only manufacturing for a single customer. So that was happening since the past 13, 14 years, I think a little longer than that. But now we are focusing on other customers also. In fact, we have onboarded four to five new brands. Again, you know, it’s a tedious process but a lot of hard work has already been done and we’ve started manufacturing for two or three of them already.
But again, to bring in the volumes, the numbers, it will take some time and you know, most of that right now, most of that right now is happening in our subsidiary company. So going forward for the standalone, we have certain plans which we will share by the end of the financial year. We have certain plans of how we intend to do what vertical in the standalone company. And so we are just sort of rejigging that internally. And by the end of this year, we’ll give you more clarity in the fourth quarter, we’ll give you more clarity on how this is going to, you know, proceed.
So but that will not affect the consolidated number. So as a company, what we are doing, you know, the gross mark where we are currently in terms of gross and EBITDA margins and you know, like on, on your question what I mentioned regarding, you know, our sustainable gross margins and how EBITDA and PBT are going to slowly expand once we achieve efficiency. So that is not going to affect the overall performance of the company. But yeah, definitely we are just discussing internally how to, you know, rejig and what we are doing the verticals that we are currently handling.
So we’ll sort of bring in some new verticals in the standalone company and you’ll get to know that in by the end of the year.
Unidentified Participant
Right, right. Okay. So one, one, one more question which I had regarding was the acquisition which we did the Gravis Tech, so the group had acquired to strengthen the marketing and distribution of our products. So basically means could you share some details on the rationale behind this and whether this acquisition implies higher marketing investments going forward or something?
Hardeep Singh — Chairman and Managing Director
No, it is not that because this is actually a new company with the experienced team so they are into high end lighting, indoor and outdoor. So that is how we acquired that company.
Sanjeet Singh — Whole-time Director
So that is just to leverage the experience and the expertise that they already have in the distribution of high end lighting products. So very premium lighting products. And this is in line with what we were planning and what we are already doing, you know, with some of our new product categories where we are again in the B2B segment, we are working with consultants, architects and you know, that particular segment. So this is going to give a boost because of the experience and the expertise that the new team where we have acquired, you know, 88% stake.
So that new team is definitely going to help us in three, capturing more of this part of the market which is, you know, the premium end of lighting, which is, which is primarily handled by your consultants, lighting designers, architects. So that was the whole rationale behind that.
Unidentified Participant
Okay, okay, thank you for that elaborate answer. One last question which I would like to ask is the Dubai market basically currently seems to be progressing well. So can we going forward win more clients, particularly in the Middle East?
Hardeep Singh — Chairman and Managing Director
Yes, we are working very strongly on that. We are expanding there with the teams and we started with the home writing in the redeem installation lighting, but now we are expanding to the home lighting as well.
Unidentified Participant
Great, great, great. So, yeah, thank you. And all the best for the upcoming quarters.
Hardeep Singh — Chairman and Managing Director
Thank you. Thank you.
operator
Thank you. Next we have a follow up question from Sanjay Sood, an individual investor. Please go ahead.
Unidentified Participant
Yeah. What is our current standing regarding this PLI scheme? If you can share something.
Hardeep Singh — Chairman and Managing Director
Actually we have applied for that but this year we are from next, next financial year we are going to take the advantage of that.
Unidentified Participant
And what is that advantage in terms of numbers?
Hardeep Singh — Chairman and Managing Director
It will be almost 5% of that.
Sanjeet Singh — Whole-time Director
So around 4, 4 and a half percent amounting to a value of somewhere around 5 to 6 crores. So that is going to be for the next year. So for next year we are in line with what is expected out of, you know, the revenue which is expected out of the, the PLI scheme in order to have, I mean, earn that advantage.
Unidentified Participant
Thank you so much.
Hardeep Singh — Chairman and Managing Director
Thank you. Thank you, Mr. Dan.
operator
Thank you. A reminder to all the participants, if you wish to ask a question, you may press star and one. As there are no further questions, I would now like to hand the conference over to Mr. Hardeep Singh for closing comments.
Hardeep Singh — Chairman and Managing Director
Thank you all for making it our quarterly earning call for quarter three, FY26. If there are any further queries, please feel free to reach out to Stellar IR advisors. Thank you again to everyone and have a nice day. Thank you very much.
operator
Thank you. On behalf of IKO Technologies Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you. It.