IT Stock Jumps 10% from Day’s Low After Its Semiconductor Arm Partners with European Firms

SYNOPSIS: IZMO’s semiconductor subsidiary partnered with European firms to develop and commercialise photonic integrated circuits for telecom, datacom, aerospace and sensing markets, targeting the rapidly growing silicon photonics industry.

During Monday’s trading session, shares of a world leader in Automotive Interactive Marketing Solutions recovered nearly 10 percent from the day’s low on BSE, after the company’s semiconductor arm partnered with  European photonics firms to accelerate next-generation silicon photonics solutions.

With a market cap of Rs. 1,097 crores, shares of IZMO Limited were trading in the green at Rs. 733 on BSE, up by over 3 percent, compared to its previous closing price of Rs. 709.65. The stock has delivered multibagger returns of over 173 percent in one year, but has fallen by around 6 percent in the last one month.

What’s the News:

According to the latest disclosure filed with the stock exchanges, the advanced semiconductor packaging subsidiary of IZMO Limited, izmo Microsystems Pvt. Ltd., has entered into a Memorandum of Understanding (MoU) with CCRAFT SA, a Swiss thin-film lithium niobate (TFLN) photonic chip foundry, and Alcyon Photonics SL, a Madrid-based leader in integrated photonics IP design.

The three-party collaboration aims to create a framework for jointly designing, producing, and commercialising advanced photonic integrated circuit (PIC) solutions for the datacom, telecom, aerospace, and sensor markets.

The partnership brings 3 specialised players across the photonics value chain. CCRAFT, a spin-off from CSEM (the Swiss Centre for Electronics and Microtechnology), operates an ISO-certified 150 mm wafer foundry and is among a select few companies globally capable of manufacturing TFLN photonic chips at scale. These chips enable high-performance electro-optic modulators capable of speeds exceeding 400 Gbit/s. Meanwhile, Alcyon Photonics contributes proven photonic IP design capabilities, offering validated, fabrication-ready architectures that help accelerate the transition from prototype development to large-scale production.

Under the terms of the MoU, the three companies will work together to deliver Alcyon’s photonic IP libraries to customers, collaborate on the joint design and production of photonic systems, and commercialise newly developed solutions. As part of the arrangement, izmo Microsystems will serve as the preferred packaging partner, providing specialised design guidelines to ensure that photonic integrated circuits are optimised for advanced semiconductor packaging from the early stages of development.

The collaboration also aligns with the growing importance of silicon photonics in the AI-driven digital economy. Industry estimates suggest that the global silicon photonics market, valued at around $2-3 billion in 2025, could expand at a CAGR of 25-30 percent. The addressable market is projected to reach $10-22 billion by the early 2030s, potentially exceeding $28 billion by 2034. A large share of this demand comes from data centres and high-performance computing, which account for more than 70 percent of market demand, as optical transceivers operating at 400G, 800G, and 1.6T speeds gradually replace copper-based interconnects.

Financials & More:

IZMO reported a marginal decline in revenue from operations, experiencing a quarter-on-quarter decrease of around 2 percent, from Rs. 60 crores in Q2 FY26 to Rs. 59 crores in Q3 FY26. Similarly, its net profit fell by around 8 percent QoQ from Rs. 13 crores to Rs. 12 crores over the same period.

For Q3 FY26, IZMO’s revenue was distributed across multiple business divisions. The Izmo Studio segment contributed the largest share, accounting for 42 percent of the company’s total revenue. This was followed by Izmo Cars and Frog Data, which each contributed 26 percent to overall revenue. Meanwhile, Izmo Micro accounted for the remaining 6 percent of the company’s revenue during the quarter.

IZMO Limited is engaged in interactive marketing solutions and offers hi-tech automotive e-retailing solutions. Its Automotive Solutions division provides enterprise platforms for digital retail and customer relationship management (CRM) for automotive after-sales, and performance consulting. The Interactive Media Solutions segment offers one of the world’s largest libraries of automotive stock images and develops 3D interactive virtual showrooms for vehicle manufacturers and dealers. 

In addition, the company provides Data Analytics solutions, delivering an integrated platform for decision analytics and AI applications tailored for the automotive industry. It is also involved in Semiconductor Packaging, focusing on advanced packaging technologies and silicon photonics manufacturing.

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