1.At a Glance
Picture this: a once-sleepy digital studio from Bangalore now parading through Silicon Valley, France, and Brussels, flashing automotive CGI and AI swagger like a peacock with photonic feathers.IZMO Ltd (₹953, market cap ₹1,424 crore)has delivered a masterclass in how to turn car pictures into international currency. The company clocked₹60 crore in quarterly revenue, a modest+2.7% QoQ, but profit slid 60% thanks to what looks like an accounting yoga stretch involving “other income.”
Still, the stock’s up221% in six months—probably the best-performing digital car photography business in the Milky Way.P/E? A spicy 45.2. ROE? A not-so-sexy 7.03%.Dividend? Don’t even ask. IZMO is allergic to cash distribution—its money prefers to live inside servers and CGI engines.
Oh, and just when you thought it was done reinventing itself, it went full mad-scientist mode—launching anAutomotive AI Factory,a photonics JV with IIT Madras, and an EV battery management WOS calledIzmo Microsystems. Basically, your local tech bro’s dream résumé—minus the beer pong.
2.Introduction
Let’s be honest—if you ever imagined a company that makes 3D car models, sells them to French dealers, sprinkles in some AI marketing magic, and then suddenly decides to buildsilicon photonic chips, you’d probably think this is a fever dream. But welcome toIZMO Ltd, India’s quirkiest and most globally connected smallcap.
Founded in1995, when most of us were still arguing over dial-up internet, IZMO saw the future of automotive retail long before ChatGPT saw a GPU. The company makes CGI car images so realistic that even your friendly neighborhood auto dealer forgets what a camera looks like.
It’s gotthree businesses—Izmo Studio,Izmo Cars, andFrogData, each a buzzword buffet: CGI, SaaS, VR, AI, DMS, CRM, ILM—you name it, they’ve acronymed it. The company boastsclients like Toyota, Ford, Avis, Renault, and Sony PlayStation, proving that it can sell pixels to petrolheads and polygons to playstationers.
But the best part? While Indian IT giants are busy “optimizing workflows” and “driving synergies,” IZMO is literally driving—its cars just happen to be made of code.
3.Business Model – WTF Do They Even Do?
Alright, Sherlock investor, let’s decode this pixel empire:
🧩1. Izmo Studio – The CGI Factory
This is the arm that makesdigital car porn—3D automotive renderings, virtual showrooms, and kinetic CGI for global auto OEMs. Think of it as the Marvel Studios of cars, minus Iron Man. This segment contributes36% of revenue (Q1 FY25)and is loved by marketing departments who hate real cameras.
🧠2. Izmo Cars – The SaaS Sidekick
A digital retail platform for auto dealers. Multilingual websites, AI-driven pricing tools, and CRM systems for parts—this unit makes sure your local car dealer in France can sell a Renault in flawless French, thanks to Indian code. This is 31% of the pie.
🐸3. FrogData – The Nerd with AI Powers
An analytics platform for dealers that predicts sales, optimizes pricing, and probably judges your haircut. It usesAutoGPT, data integration, and AI upselling models. Now contributing32%(up from 21%), it’s the breakout star. And guess what? They’re planning tosell up to 15%of it—because when your frog turns into a prince, you take some profit.
So, they makeCGI cars,sell digital dealerships, andanalyze dealer data—a three-course tech meal served with an extra dash of AI masala.
4.Financials Overview
| Metric | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 60.1 | 59.0 | 57.0 | 1.9% | 5.4% |
| EBITDA (₹ Cr) | 14.0 | 9.0 | 10.0 | 55.6% | 40.0% |
| PAT (₹ Cr) | 12.6 | 30.0 | 6.0 | -58.0% | 110.0% |
| EPS (₹) | 8.43 | 21.13 | 4.03 | -60.1% | 109.1% |
💬Commentary:IZMO’s quarterly results read like a screenplay: Act 1 – Flat sales. Act 2 – Other income rollercoaster. Act 3 – Profit cliff dive. But don’t be fooled—the underlying engine (EBITDA) is still running fine, at22% OPM, up sharply QoQ. It’s just that Q2FY25’s ₹30
crore profit was inflated by “other income” (read: one-time fireworks).
5.Valuation Discussion – Fair Value Range
Let’s crunch it desi-style:
P/E Method
- EPS (TTM): ₹21.2
- Industry P/E: 34.1
- Fair value = ₹21.2 × (35–50) =₹742 – ₹1,060
EV/EBITDA Method
- EV/EBITDA: 27.7
- EBITDA (TTM): ₹43 Cr
- EV ≈ ₹1,418 CrSo fair value range assuming 20–30x EV/EBITDA =₹1,000–₹1,450 Cr→ per share₹670–₹970
DCF (Simplified)
If sales grow at 18% CAGR (their 5-year average) and FCF margin of 10%, DCF fair range lands around₹850–₹1,100.
🎯 Educational Fair Value Range:₹740 – ₹1,100(This fair value range is for educational purposes only and is not investment advice.)
6.What’s Cooking – News, Triggers, Drama
Oh boy, where do we start?
- Rs. 200 Cr fundraiseapproved by the board (Nov 2025). The market smelled “AI expansion,” but it could also mean “we need cash for silicon experiments.”
- Automotive AI Factorylaunched in August 2025—a new vertical to automate car retail intelligence. Think ChatGPT but for car salesmen.
- Izmo Microsystems + IIT Madras– developing photonic chips with <2 dB loss and 70 GHz performance. Yep, your CGI company now does chip packaging.
- ISO 27001:2022 certification– finally, data security that won’t make compliance officers cry.
- Acquired Geronimo Web (UK)in 2024 to expand its European dealer base.
- Sold land in Whitefield, Bangalore for ₹31 Cr, which helped finance new R&D facilities.
Basically, IZMO turned from a “car image company” into a “tech-multiverse startup” faster than you can say “AI photonics.”
7.Balance Sheet
| (₹ Cr) | Mar’23 | Mar’24 | Sep’25 |
|---|---|---|---|
| Total Assets | 323 | 364 | 467 |
| Net Worth | 273 | 306 | 380 |
| Borrowings | 11 | 9 | 7 |
| Other Liabilities | 39 | 49 | 81 |
| Total Liabilities | 323 | 364 | 467 |
🔍Observations:
- Debt? Almost extinct—₹7 Cr. The CFO must be allergic to loans.
- Net worth keeps rising like petrol prices, thanks to retained profits.
- Other liabilities jumped 65%—probably advance revenues and deferred taxes, or maybe pending ESOPs.
💬Translation:Balance sheet is clean, sturdy, and ready for a fundraise party.
8.Cash Flow – Sab Number Game Hai
