Optiemus revenue climbed 135% as margin fell year on year

Optiemus Infracom Ltd. reported Q2 FY27 operating revenue of ₹983.17 crore, up 135% year on year, while EBITDA margin declined 400 basis points to 4.08% from 8.04%. Management said incubation of its drones and cover-glass businesses reduced quarterly EBITDA by ₹3.57 crore, although the reported margin improved from 3.44% in Q1 FY27.

How did Optiemus perform in Q2 FY27?

Optiemus recorded operating revenue of ₹983.17 crore and EBITDA, or earnings before interest, tax, depreciation and amortisation, of ₹40.14 crore in Q2 FY27. Management described both as its highest-ever quarterly revenue and EBITDA. Revenue rose from ₹418.27 crore in Q2 FY26 and ₹882.99 crore in Q1 FY27, representing year-on-year growth of 135% and quarter-on-quarter growth of 11%.

EBITDA increased 19% from ₹33.62 crore in Q2 FY26 and 32% from ₹30.41 crore in Q1 FY27. As EBITDA grew faster than revenue sequentially, the EBITDA margin increased by 64 basis points to 4.08% from 3.44% in Q1 FY27. A basis point is one-hundredth of a percentage point. Management attributed the sequential improvement primarily to product mix, operating leverage and the ramp-up of the recently commissioned Unit 3 in Noida.

Profit before tax, or PBT, was ₹28.90 crore, up 16% from ₹24.90 crore a year earlier and 2% from ₹28.24 crore in Q1 FY27. Profit after tax, or PAT, rose 25% year on year to ₹21.01 crore from ₹16.78 crore, but declined 1% sequentially from ₹21.18 crore. The result therefore combined substantial revenue growth with a smaller rise in EBITDA and a marginal sequential reduction in PAT.

Why was Optiemus’s EBITDA margin lower than last year?

Optiemus’s EBITDA margin was lower year on year because revenue expanded 135% while EBITDA increased 19%, taking the reported margin to 4.08% from 8.04% in Q2 FY26. The 400-basis-point decline occurred despite EBITDA increasing by ₹6.52 crore, because operating revenue increased by ₹564.90 crore over the same comparison.

Management said incubation expenses for its drones and cover-glass businesses affected Q2 FY27 EBITDA by ₹3.57 crore and PAT by ₹4.11 crore. Excluding losses in those businesses, management calculated core operating EBITDA at ₹43.71 crore and core PAT at ₹25.12 crore. Its adjusted EBITDA margin was 4.45%, which was 37 basis points above the reported 4.08% margin but below the Q2 FY26 reported margin of 8.04%.

The sequential and annual margin comparisons moved in different directions. EBITDA margin rose from 3.44% in Q1 FY27 to 4.08% in Q2 FY27, while PAT margin declined from 2.40% to 2.14%, or by 26 basis points. Management linked the EBITDA-margin recovery to Unit 3, product mix and operating leverage, while identifying other income and depreciation as factors affecting the movement in net profit.

What affected Optiemus profit after tax in Q2 FY27?

Optiemus’s PAT declined by ₹0.17 crore sequentially because other income fell and depreciation increased, even as EBITDA rose by ₹9.73 crore. Other income was ₹3.06 crore in Q2 FY27, compared with ₹10.91 crore in Q1 FY27, a 72% sequential decline. Management said the higher other income in the base quarter was a reason PAT remained broadly flat quarter on quarter.

Depreciation was ₹8.67 crore, up 44% from ₹6.01 crore in Q2 FY26 and 31% from ₹6.63 crore in Q1 FY27. Interest expense was ₹5.81 crore, 21% above ₹4.82 crore a year earlier but 7% below ₹6.23 crore in Q1 FY27. Tax was ₹7.89 crore, down 3% from ₹8.12 crore in Q2 FY26 and up 12% from ₹7.06 crore in the preceding quarter.

For H1 FY27, operating revenue rose 119% to ₹1,866.16 crore from ₹853.63 crore in H1 FY26, while EBITDA increased 17% to ₹70.55 crore from ₹60.37 crore. The H1 EBITDA margin fell 329 basis points to 3.78% from 7.07%. PAT increased 35% to ₹42.19 crore, but the PAT margin decreased 141 basis points to 2.26% from 3.67%.

What revenue targets has Optiemus set through FY29?

Optiemus has maintained management’s FY27 revenue target of about ₹3,600 crore and raised its FY28 and FY29 targets to about ₹6,500 crore and ₹8,500 crore, respectively. Management said the FY27 target was about twice FY26 revenue and was anchored by strong H1 execution and forward visibility. It cited smartphone visibility, other electronics manufacturing services, or EMS, wins, and the Unit 3 ramp-up as stated drivers.

Management described the FY28 target of about ₹6,500 crore as implying 80% growth, compared with 30% guided earlier. It cited screen protectors and EMS scale-up as the drivers. For FY29, management set a target of about ₹8,500 crore, implying growth of more than 30%, with screen protectors and EMS scale-up again identified as the drivers.

These targets are management objectives rather than reported outcomes. H1 FY27 operating revenue of ₹1,866.16 crore is the disclosed reported base against the FY27 target of about ₹3,600 crore. The presentation does not provide segment-level quarterly revenue, costs or margins for smartphones, EMS, screen protectors, drones or cover glass, so their individual financial contributions cannot be determined from the disclosed results.

Conclusion

Optiemus delivered record quarterly revenue of ₹983.17 crore and record EBITDA of ₹40.14 crore in Q2 FY27, with EBITDA margin recovering sequentially to 4.08%. Yet the annual comparison showed a 400-basis-point margin decline as revenue growth substantially outpaced EBITDA growth, while drone and cover-glass incubation reduced EBITDA by ₹3.57 crore. Management’s adjusted EBITDA margin was 4.45%.

The next reported developments to watch are progress toward management’s FY27 revenue target of about ₹3,600 crore, the continuing ramp-up of Unit 3 in Noida, and the stated EMS and screen-protector scale-up. The disclosed Q2 impact of ₹3.57 crore on EBITDA and ₹4.11 crore on PAT also leaves the future effect of drones and cover-glass incubation unresolved.