OSEL Devices Limited: A Half-Year of Stellar Growth and Strategic Expansion

OSEL Devices Limited, a technology company headquartered in Delhi, has reported an exceptional financial performance for the first half of fiscal year 2026 (H1 FY26). The company, an end-to-end manufacturer of LED Displays and Hearing Aids, has successfully diversified its portfolio by entering the mobile phone segment under the Philips brand. This strategic expansion, coupled with robust growth across its core businesses, has positioned OSEL for continued momentum.

For H1 FY26, OSEL's revenue from operations surged by an impressive 68.13% year-on-year, reaching INR 146.86 crore. This significant top-line growth was accompanied by even stronger profitability metrics: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 83.86% to INR 24.68 crore, while Profit After Tax (PAT) soared by 89.51% to INR 15.19 crore. The Net Margin improved to 10.34% from 9.17% in H1 FY25, and Earnings Per Share (EPS) rose to INR 9.27 from INR 4.97, reflecting enhanced operational efficiency and effective cost management.

Segmental Performance and Growth Drivers

OSEL's diversified business model, encompassing Hearing Aids, LED Displays, and Mobile Phones & Tablets, has been a key driver of its H1 FY26 success. The LED Display segment emerged as the largest contributor, accounting for 48.90% of total sales, with a remarkable year-on-year growth of 99.41%. This growth is fueled by increasing demand for visually impactful advertising solutions across retail, sports, transportation, and hospitality sectors, alongside the rise of digital out-of-home (DOOH) advertising. OSEL's strategy in this segment includes entering international markets through collaborations with leading OEMs and establishing national tie-ups with prominent banks for widespread installations across India.

The Hearing Aid segment contributed 35.21% to the total revenue, experiencing a modest but steady growth of 0.73%. OSEL's commitment to this segment is evident in its tiered product portfolio, catering to diverse customer needs across various price points and technologies. The company is also building a strong clinical network supported by trained audiologists in India and has initiated pilot export orders, planning to expand into private market channels like retail, wholesale, and digital platforms. Collaborations with international partners such as Frye Electronics Inc. further strengthen its technological capabilities and market credibility.

Entry into the Mobile Phone Market with Philips

One of OSEL's most significant strategic moves has been its entry into the mobile phone and tablet segment under the Philips brand, which contributed 15.89% to H1 FY26 sales. This initiative aims to disrupt the Indian mobile market, with OSEL leading product manufacturing, marketing, and distribution. The company has adopted a phased approach, starting with the feature phone market (Phase 1), which is expected to generate INR 10,000 crore annually with a demand for approximately 90 million units. Phase 2 targets the smartphone market, with an estimated potential of INR 4 lakh crore in revenue and a demand for 170 million units annually.

Management highlighted that the mobile division has shown steady progress, evolving from an initial pilot order of 1 lakh units to follow-up orders exceeding 3 lakh units, supported by encouraging market feedback. The company anticipates continued momentum, targeting orders exceeding 5 lakh units by December. This strategic entry leverages the strong brand recall of Philips, enabling easier market penetration in the price-driven feature phone segment. OSEL is also establishing a manufacturing and warehousing facility at JNPT, which will support both domestic and international business, including re-exports to the Middle East, further solidifying its manufacturing capabilities.

Financial Summary Table (INR Crore)

Outlook and Strategic Vision

OSEL's management expressed confidence in sustaining this growth trajectory, targeting an overall growth rate of 20-25%. The company's focus on in-house R&D, strategic partnerships, and a balanced India-export sales strategy underpins its long-term vision. While acknowledging the need for increased working capital to support higher business volumes, management is actively managing liquidity, including utilizing bank limits and short-term investments in mutual funds to balance debt. The company's commitment to quality, evidenced by its ISO and BIS certifications, further strengthens its market position.

OSEL Devices Limited is clearly on a path of aggressive expansion and innovation. By strategically diversifying its revenue streams and strengthening its manufacturing and distribution capabilities, the company is well-positioned to capitalize on the significant opportunities in India's rapidly evolving technology markets. The focus on sustainable growth, innovation, and long-term value creation for all stakeholders remains at the core of its strategy.