Optiemus targets Rs 6,500 crore in FY28, Rs 8,500 crore FY29

Optiemus Infracom Limited targets revenue of about Rs 6,500 crore in FY28 and Rs 8,500 crore in FY29, after raising its FY28 growth expectation to 80% from 30% earlier. Management attributes the outlook to electronics manufacturing services expansion and a commercial screen-protector rollout planned from the next fiscal year.

Why did Optiemus raise its FY28 and FY29 revenue targets?

Optiemus raised its targets because management expects sustained electronics manufacturing services, or EMS, growth and a new screen-protector revenue stream from FY28. The presentation retains an FY27 revenue target of about Rs 3,600 crore, described as roughly double FY26 revenue, then sets FY28 revenue at about Rs 6,500 crore and FY29 revenue at about Rs 8,500 crore.

The FY28 target implies about 80% growth from the FY27 target, compared with 30% growth guided earlier, according to the financial-outlook slide. For FY29, management expects growth of more than 30% from the FY28 target. The same slide describes Rs 6,000 crore as the earlier target that has been revised to Rs 8,500 crore, while the chairman says the revised outlook is largely based on screen protectors and continuing EMS expansion.

These are management targets rather than reported revenue. Optiemus says its wholly owned drone subsidiary, Optiemus Unmanned Systems, is not included in the guidance. The company identifies smartphone visibility, other EMS wins and Unit 3 ramp-up as FY27 drivers, while the FY28 and FY29 outlook adds screen protectors to the planned growth mix.

What supports Optiemus's EMS growth outlook?

Optiemus's Q2 FY27 results provide the disclosed near-term basis for its FY27 target. Consolidated operating revenue reached Rs 983.17 crore in Q2 FY27, up 135% from Rs 418.27 crore in Q2 FY26 and 11% from Rs 882.99 crore in Q1 FY27. Management said smartphone manufacturing generated more than Rs 500 crore of revenue for a successive quarter.

The EMS platform spans smartphones, hearables and wearables, telecom, Internet of Things, or IoT, modules, automotive, fintech and cameras. Optiemus lists recent partnership wins or ramp-ups in smartphones with AI+, IoT modules with Quectel, power banks with Redlift, IoT products with Vivo, and point-of-sale devices with Pine Labs. It also says it exited volatile local-brand contracts and added premium customers to support consistent production volumes.

Profit growth was lower than revenue growth in the quarter. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 19% year on year to Rs 40.14 crore, while the EBITDA margin declined to 4.08% from 8.04%. Sequentially, EBITDA rose 32% from Rs 30.41 crore in Q1 FY27 and the margin increased by 64 basis points from 3.44%, with one basis point equal to one-hundredth of a percentage point.

How will screen protectors contribute to Optiemus's targets?

Screen protectors are the principal new business element in Optiemus's FY28 and FY29 plan, but the presentation does not report commercial sales from the category in Q2 FY27. Management is preparing production ahead of mandatory Bureau of Indian Standards, or BIS, certification and fog-marking compliance effective April 1, 2027. The company describes the current import-only market as Rs 20,000 crore at consumer prices and estimates a potential Rs 40,000 crore market by 2030.

Optiemus plans 2.5 crore screen-protector units of monthly capacity through brownfield and greenfield facilities. Its existing Noida site is to expand from 20 lakh units to 50 lakh units a month, with commissioning expected by January 2027. A leased, pre-constructed greenfield facility, stated to have 2 crore units of monthly capacity, is expected to become operational by March 2027.

The chairman disclosed capital expenditure of about Rs 250 crore to Rs 300 crore for the capacity build-out. About Rs 200 crore is planned to be raised through a further issue of securities, with the balance funded through debt and internal accruals. He also said the proposed fund infusion would increase promoters' overall stake, although the presentation gives no pricing, timetable or post-issue shareholding.

Optiemus has named SCREENlife, OPTIGUARD and RHINOTECH as screen-protector brands, while KAVACH is offered as a pack containing two tempered glasses and one display replacement over 365 days. The planned routes to market are online channels, offline mainline shops and organised retail. The presentation does not disclose category sales, prices, market share or profitability targets.

Which other milestones could affect Optiemus's revenue path?

Optiemus has proposed a joint venture with CMF at about 51:49 with Nothing, but the definitive agreement remains in progress and is subject to government guidelines and regulatory approvals. The proposed venture would handle research and development, design, sales and marketing for CMF, while manufacturing would be undertaken by Optiemus's EMS division.

The presentation cites a 5% baseline incentive on eligible domestic smartphone sales under the scheme it calls PLI 2.0, along with potential incentives of 3% for in-house research and development and 1.5% for domestic component sourcing. Those percentages are scheme features cited by management, not revenue assumptions for the proposed CMF venture. Optiemus also plans an unspecified second business-to-consumer category launch in Q4 FY27.

A 70:30 cover-glass joint venture with Corning International has a ready facility in Tamil Nadu, according to Optiemus. Original equipment manufacturer audits and technical trials are under way, with customer onboarding expected over the next three to four quarters; another presentation slide identifies likely onboarding in Q1 FY28. The company also cites possible incentives of 0.5% for enclosures and 0.3% for display modules, including cover glass.

Conclusion

Optiemus's revised plan sets a steep revenue path from its maintained FY27 target of about Rs 3,600 crore to Rs 6,500 crore in FY28 and Rs 8,500 crore in FY29. Q2 FY27 operating revenue of Rs 983.17 crore, up 135% year on year, supplies the reported EMS momentum, but the FY28 increase also depends on building and selling a new screen-protector portfolio.

The next disclosed milestones are the brownfield screen-protector expansion expected by January 2027, greenfield operations expected by March 2027, and the April 1, 2027 BIS compliance date. Management's Q4 FY27 second consumer-category launch, the CMF definitive agreement and regulatory approvals, and cover-glass customer onboarding over the next three to four quarters are additional events to watch.