IZMO Ltd Q3 FY26 Earnings Analysis

- Overall revenue growth target for FY '26 is between 20% to 30%, with steady 10-15% normalized growth expected once tariff issues resolve. - izmoMicro segment is expected to grow very rapidly, with a projection of INR 200 crores revenue in the next 2-3 years (current order book INR 50 crores). - Silicon photonics packaging revenue is expected to potentially match legacy business revenues (~INR 200 crores) in the next 3 years. - Expansion of advanced packaging capacity aims to increase turnover from INR 80-100 crores currently to around INR 1,000 crores after completion (~10x capacity increase). - Quantum random number generator product and FrogData business are expected to drive future growth, with good demand anticipated once related technologies scale up. - Growth is supported by increased OEM engagements, especially in the US, targeting sizable opportunities without significant new investments.

- EBITDA margins expected between 20%-25% for FY '26, improving beyond that depending on market conditions (Page 19). - izmoMicro segment aims for 30% EBITDA margins, potentially exceeding this with higher volumes (Page 17). - Breakeven in izmoMicro division anticipated in the current year, with gross margin of 30%-40% and EBITDA margin around 25% projected from next year onward (Page 9). - Company targets 50%-50% revenue contribution from izmoMicro and other segments over next 3 years, contributing to margin expansion (Page 17). - PAT margin for half year stood at 15.92%, with EPS at INR12.52, indicating solid profitability (Page 6). - Revenue growth guidance maintained at 20%-30% overall, with izmoMicro expected to grow at over 30% annually (Page 14). - Long-term goal includes achieving revenue of INR200 crores from izmoMicro in next 2-3 years, scaling capacity to INR1,000 crores turnover after expansion (Pages 13, 21).

- IZMO Limited plans an advanced packaging expansion with a capex of INR 150-200 crores, aiming to increase capacity from INR 80-100 crores to INR 1,000 crores turnover. - A photonics fabrication facility is planned with an estimated capex of INR 130-140 crores, total project cost including working capital between INR 150-200 crores. - The fabrication facility project timeline is 2-3 years, with a government subsidy of 50% under ISM potential. - The fab project execution cycle is expected to be 10-12 months after fundraising and ordering machinery. - The fab initiative is government-driven to make IZMO a leader in silicon photonics and is part of national semiconductor mission support. - Expansion plans include skilled machinery imports from Europe and development of a high-tech, secure facility near the new airport aerospace park.

- IZMO Limited is planning a fundraise of INR 200 crores. - The mode of fundraising (preferential, rights issue, or others) has not yet been finalized and is still fluid. - The company is in talks with various merchant bankers but no decision has been made. - Promoters' participation in the fundraise is also undecided at this time. - The final quantum and details will be decided once the total amount is finalized. - No specific timeline for fundraising completion is mentioned. - The fundraise is primarily linked to expansion plans, including a major advanced packaging facility and photonics fabrication.

- Current order book for izmo Micro is around INR 50 crores, up from INR 25 crores earlier. - This order book is expected to be executed over the next nine months. - For the semiconductor business, current order book has crossed INR 50 crores with a 9-month execution timeline. - Expansion projects and new facility capacities are aimed at increasing order volumes significantly in coming years. - Overall growth potential includes targeting INR 200 crores revenue in izmo Micro over next 2-3 years, subject to execution. - Discussions with customers are ongoing for new product orders like silicon photonics packaging and quantum random number generators, indicating future order inflows but no specific numbers shared yet.