Izmo Q2 FY26 Earnings: Margin Expansion Shines Despite Modest Revenue Growth

Izmo reported a steady Q2 FY26 with improving profitability and early traction in its new tech verticals, even though revenue growth remained moderate. Q2 Highlights • Revenue: ₹60.1 crore, up 6.4% QoQ and 2.7% YoY • EBITDA: ₹13.5 crore, up 42% YoY; EBITDA margin ~22.5% • Net Profit: ₹12.6 crore, up 109% QoQ (though down YoY due to a high base) • H1 FY26 Revenue: ₹116.6 crore, up 9.8% YoY • H1 EBITDA: ₹18.8 crore, up 23% YoY What’s Working Strong margin improvement driven by cost optimisation and operational discipline Early progress in izmoMicro, the company’s semiconductor and silicon photonics vertical Growing contribution from new technology-led solutions as the company transitions away from legacy segments What to Track Revenue growth remains modest; legacy businesses lack momentum Execution is key in the semiconductor/phtotonics segment, which may take 2–3 years to scale Management expects EBITDA margins in the 20–25% range for FY26, with further upside as new businesses mature Takeaway Izmo’s Q2 shows improving profitability and the early promise of higher-value tech segments. While the top-line is still stabilising, the company’s shift toward semiconductors and photonics provides a long-term optionality story. Investors should watch for consistent revenue pickup and scaling of the new vertical. If you found this post helpful, do follow me for more such insights!