This Micro-cap Stock, engaged in semiconductor manufacturing and packaging, complements its automotive IT business by leveraging advanced semiconductor and microelectronics technologies and is in focus after the company guided for its revenue of Rs. 200 crores from its semiconductor segment within the next three years
With a market capitalization of Rs. 1,581.04 crores, the shares of IZMO Limited hit a 5 percent upper circuit of Rs. 1,061.60 per share on Friday, up from its previous closing price of Rs. 1,011.05 per share. The stock has delivered impressive returns of over 2,910.97 percent in the last five years and over 290.99 percent in the last six months.
Management Guidance for FY26
For FY26, IZMO anticipates its overall business to grow by 25-30 percent over the previous year. FrogData, a major segment, is expected to lead this growth, with revenues rising from approximately Rs. 65 crores in FY25 to Rs. 100 crores in FY26.
The company also expects better profitability, with the EBITDA margin projected to increase to 35-40 percent. This improvement is driven by new ventures like IZMO Micro and Geronimo, which were previously operating at a loss but are expected to turn profitable from Q3 FY26. Geronimo alone is forecasted to generate around €3 million in revenue during the year.
Semiconductor Foray
IZMO Microsystems, a wholly owned subsidiary of IZMO Limited, has entered the rapidly expanding semiconductor industry with a focus on system-in-package (SiP) solutions.
The company has established a cutting-edge facility in Bangalore, featuring advanced technologies such as 3D die stacking, fine-pitch wire bonding, flip chip, and a class 1,000 clean room. This infrastructure enables IZMO to offer rapid prototyping and accelerate product development for sectors like automotive, telecom, consumer electronics, and electric vehicles.
The semiconductor business has already started contributing to revenues in recent quarters. IZMO Microsystems has gained significant client traction, including a major global automotive customer and Bharat Electronics Limited (BEL), one of India’s top defence electronics firms. With these partnerships, the company aims to reach break-even by FY26 and expects to report profitability (PAT and EBITDA) from Q3 FY26 onwards.
Looking forward, IZMO targets a revenue of Rs. 200 crores from its semiconductor segment within the next three years. The business focuses on high-value, IP-driven solutions, with product-level gross margins projected at 60-70 percent. Supported by an order book of Rs. 25 crores for the current year, IZMO is positioning itself as a prominent player in India’s growing semiconductor ecosystem.
Segment Overview
FrogData currently serves over 800 clients, mainly in the US, and has strong growth opportunities across 16,000 US dealers and 19,000 dealers in Europe. With plans to expand its sales team from 9 to 25 by FY26, the business is well-equipped to increase market reach and boost revenue.
Izmo Cars, operating across the US, Europe, and Latin America, leverages cross-sell and up-sell strategies in collaboration with Geronimo. This integrated approach is expected to enhance recurring revenues and expand global customer relationships.
IZMO Micro, the company’s semiconductor and photonics division, is set to be the largest growth driver. Focused on high-value IP-led SiP/3D packaging and an upcoming photonics launch, management anticipates IZMO Micro will account for 30-40 percent of consolidated revenues within three years.
Key Strategic Developments
IZMO acquired UK-based Geronimo Web, enhancing its presence in Europe and Latin America and adding Ford as a key client. Geronimo is targeting €3 million in revenue for FY26. Additionally, IZMO partnered with IIT Madras on advanced photonic chip research, strengthening its position in the $4.6 billion silicon photonics market.
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Company Overview
IZMO Limited was founded in 1995 and is headquartered in Bangalore, Karnataka. The company specializes in automotive interactive marketing and retail solutions for dealerships. The company operates globally, providing advanced automotive e-retailing solutions across the U.S., Mexico, Europe, and Asia.
Recent quarter results and ratios
Coming into financial highlights, IZMO Limited’s revenue has increased from Rs. 47.58 crore in Q1 FY25 to Rs. 56.51 crore in Q1 FY26, which has grown by 18.77 percent. The net profit has slightly decreased by 0.50 percent from Rs. 6.03 crore in Q1 FY25 to Rs. 6 crore in Q1 FY26.
IZMO Limited’s revenue and net profit have grown at a CAGR of 17.37 percent and 34.82 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 7.98 percent and 7.03 percent, respectively. IZMO Limited has an earnings per share (EPS) of Rs. 32.87, and its debt-to-equity ratio is 0.03x.
Written By – Nikhil Naik
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