Optiemus Infracom Q2 revenue rises 135%, margin falls to 4.08%

Optiemus Infracom Limited reported Q2 FY27 consolidated operating revenue of Rs 983.17 crore, up 135% year on year, while its earnings before interest, tax, depreciation and amortisation (EBITDA) margin declined 400 basis points to 4.08% from 8.04%. EBITDA increased 19% to Rs 40.14 crore, a slower rate than revenue.

Why did Optiemus Infracom’s Q2 FY27 revenue rise 135%?

Optiemus Infracom’s operating revenue increased by Rs 564.90 crore year on year to Rs 983.17 crore in Q2 FY27, from Rs 418.27 crore in Q2 FY26. Management described the quarter as its highest-ever quarterly revenue performance, following a strong Q1 FY27, although the presentation does not provide a revenue split by product or customer.

Sequentially, revenue rose Rs 100.18 crore, or 11%, from Rs 882.99 crore in Q1 FY27. For the first half of FY27, operating revenue reached Rs 1,866.16 crore, compared with Rs 853.63 crore in H1 FY26, an increase of 119%. The company said its FY27 revenue target of about Rs 3,600 crore remains maintained and is anchored by smartphone visibility, other electronics manufacturing services (EMS) wins and the ramp-up of Unit 3.

How did Optiemus Infracom’s Q2 FY27 profitability compare with last year?

Optiemus Infracom’s Q2 FY27 EBITDA rose Rs 6.52 crore, or 19%, to Rs 40.14 crore, while the EBITDA margin fell to 4.08% from 8.04% in Q2 FY26. The 400-basis-point decline means that EBITDA did not grow in line with the 135% expansion in operating revenue. One basis point equals one-hundredth of a percentage point.

Profit before tax, or PBT, increased 16% year on year to Rs 28.90 crore from Rs 24.90 crore. PAT rose 25% to Rs 21.01 crore from Rs 16.78 crore, despite depreciation increasing 44% to Rs 8.67 crore. PAT margin nevertheless declined 188 basis points to 2.14% from 4.01%, another indication that reported profit growth was below revenue growth on a margin basis.

For H1 FY27, EBITDA was Rs 70.55 crore, up 17% from Rs 60.37 crore in H1 FY26, while the margin was 3.78%, down 329 basis points from 7.07%. H1 PAT increased 35% to Rs 42.19 crore, but its margin fell 141 basis points to 2.26%. The half-year comparison shows the same pattern as Q2: larger revenue and profit in rupee terms alongside lower reported margins.

What improved from Q1 FY27 to Q2 FY27?

Optiemus Infracom’s EBITDA margin improved 64 basis points sequentially to 4.08% in Q2 FY27 from 3.44% in Q1 FY27. Management attributed the improvement primarily to a better product mix and operating leverage from the ramp-up of recently commissioned Unit 3 in Noida. EBITDA rose 32% sequentially, or Rs 9.73 crore, from Rs 30.41 crore.

PBT increased only 2% sequentially, to Rs 28.90 crore from Rs 28.24 crore, despite the EBITDA rise. The presentation identifies two offsets: other income declined to Rs 3.06 crore from Rs 10.91 crore in Q1 FY27, and depreciation increased 31% to Rs 8.67 crore from Rs 6.63 crore. Interest expense decreased 7% sequentially to Rs 5.81 crore from Rs 6.23 crore.

PAT declined 1% quarter on quarter to Rs 21.01 crore from Rs 21.18 crore. Tax rose 12% to Rs 7.89 crore from Rs 7.06 crore, while Optiemus Infracom’s share of profit or loss from an associate or joint venture changed to a Rs 19 lakh profit from a Rs 21 lakh loss. The sequential result therefore combined better core EBITDA with lower other income and higher depreciation.

How did drones and cover glass affect Optiemus Infracom’s earnings?

Optiemus Infracom said incubation expenses for its drones and cover-glass businesses reduced reported Q2 FY27 EBITDA by Rs 3.57 crore and PAT by Rs 4.11 crore. These expenses form part of the reported consolidated figures, including the Rs 40.14 crore EBITDA and Rs 21.01 crore PAT disclosed for the quarter.

Excluding the losses attributed to drones and cover glass, management calculated core operating EBITDA of Rs 43.71 crore and core PAT of Rs 25.12 crore for Q2 FY27. On that adjusted basis, management put the EBITDA margin at 4.45%, compared with the reported 4.08%. The adjustment lifts the stated margin by 37 basis points, but the presentation does not provide comparable adjusted figures for Q1 FY27 or Q2 FY26.

The disclosed effect also shows that reported PAT was Rs 4.11 crore below the adjusted figure, compared with a Rs 3.57 crore EBITDA impact. The presentation labels these as incubation expenses and does not specify the individual cost categories, revenue contribution or timing for the drones and cover-glass businesses.

What revenue targets has Optiemus Infracom set through FY29?

Optiemus Infracom has maintained its FY27 revenue target at about Rs 3,600 crore and revised its FY28 and FY29 targets upward to about Rs 6,500 crore and Rs 8,500 crore, respectively. The FY29 target was previously Rs 6,000 crore, according to the presentation. These are management targets and forward-looking statements rather than reported results.

Management’s FY28 target implies 80% growth, versus its earlier guidance of 30%, and its FY29 target implies growth of more than 30%. The identified drivers for FY28 and FY29 are screen protectors and EMS scale-up, while FY27 is linked to smartphone visibility, other EMS wins and Unit 3. The Rs 1,866.16 crore reported in H1 FY27 represents slightly more than half of the stated Rs 3,600 crore FY27 target.

Conclusion

Optiemus Infracom delivered record quarterly revenue of Rs 983.17 crore and record EBITDA of Rs 40.14 crore in Q2 FY27, with sequential EBITDA margin recovery to 4.08%. However, the year-on-year comparison shows revenue rising 135% while EBITDA rose 19%, causing the reported EBITDA margin to decline from 8.04% in Q2 FY26.

The next disclosed milestones are management’s FY27 revenue target of about Rs 3,600 crore and the Unit 3 ramp-up cited as a source of operating leverage. Readers can also track whether the planned scale-up in screen protectors and EMS supports the revised FY28 target of about Rs 6,500 crore, and whether drones and cover-glass incubation expenses continue to affect reported earnings.