Osel Devices FY26: Growth across hearing aids, LED displays, and Philips mobile

Osel Devices Limited closed FY26 with broad-based growth across its three operating verticals: hearing aids, LED displays, and Philips-branded mobile devices. On a consolidated basis, revenue from operations rose to INR 292.7 crore, up 56.9% year on year. EBITDA increased to INR 53.3 crore, with an 18.2% margin, and profit after tax grew to INR 29.2 crore, translating to a 10.0% PAT margin.

The business mix remained balanced. Hearing aids contributed around 42% of revenue, LED displays around 41%, and mobile phones around 17%. Exports were reported at around INR 23 crore for FY26. The presentation positions this operating model as an integrated platform that combines regulated medical device manufacturing, electronics manufacturing, and forward integration into services and software.

A three-vertical model with different growth levers

In hearing aids, the company highlights a strategy to move beyond manufacturing into diagnosis, fitting, and aftercare through SFL Hearing Solutions. The presentation notes around 40 clinics are operating today, with a stated intent to expand pan-India. The company also frames the Indian hearing-aid market as structurally under-penetrated, citing low treatment and adoption rates, and points to the shortage of audiologists as a constraint that can become a competitive advantage for a player operating audiologist-staffed clinics.

In LED displays, Osel positions itself as a full-range provider across indoor, outdoor, transparent, custom and rental applications. A key differentiator described is a proprietary digital signage CMS, which is stated to be hardware-agnostic and billed monthly per display or location. The presentation reports 300+ locations live, pricing of INR 700 to 800 per display per month, and a long-term target of 1 lakh+ locations.

In mobile phones and accessories, the company operates under a Philips brand license and describes a phased portfolio approach. Feature phones were launched in 2025, smartphones were commercialized in March 2026, and tablets are expected in December 2026. The distribution footprint described includes 268 distributors and 13,800+ touchpoints, and the company reports 4.55 lakh unit sales in H2 FY26.

Cash flow and balance sheet signals behind the growth

FY26 profitability expanded, but the cash flow statement shows operating cash flow remained negative. Net cash from operating activities was negative INR 22.72 crore in FY26, compared with negative INR 68.65 crore in FY25. The presentation attributes FY26 financing inflows to funding an aggressive investing program and working-capital build-up, reflecting mobile scale-up, the SFL acquisition, and technology investment.

Investing cash flow was negative INR 91.24 crore in FY26, while financing cash flow was positive INR 106.85 crore. Cash and cash equivalents at year-end declined to INR 1.64 crore.

The balance sheet indicates a material rise in short-term borrowings to INR 93.17 crore as of 31 March 2026, up from INR 47.95 crore a year earlier. Trade receivables increased to INR 107.24 crore from INR 65.62 crore, and inventories increased to INR 57.96 crore from INR 40.77 crore. These movements are consistent with a scale-up phase, but they also highlight the importance of working-capital control as the business expands.

Strategy focus: forward integration, recurring revenue, and export readiness

The presentation outlines six reinforcing growth pillars: forward integration through SFL clinics, scaling the Philips mobile portfolio and distribution, expanding LED installations while scaling CMS subscriptions, building the JNPA SEZ hub as an export-grade manufacturing and EMS base, developing OEM supply relationships, and leveraging certifications to access regulated export markets.

A central strategic project described is the JNPA SEZ facility, positioned as the next growth engine. The presentation states commercialization is expected from April 2027. The company highlights the SEZ structure as export-oriented, with duty-free benefits and export incentives, and emphasizes port logistics advantages given proximity to India’s busiest port. This initiative is also linked to the ambition to supply international customers and OEMs.

Another lever described is Proxima Leasing, a proposed subsidiary intended to offer LED screens on an OPEX or leasing basis. The presentation indicates an approximate 2-year recovery period to recover screen cost via lease income, with 7 to 8 years of residual revenue across product life. If executed as described, the model could lower adoption barriers for customers who prefer operating expenditure over capex.

Takeaways from FY26

Osel Devices reported strong consolidated growth in FY26, with revenue, EBITDA, and PAT all rising sharply year on year. The company’s narrative centers on building moats through certifications, vertical integration, and forward integration into clinics and recurring software. At the same time, the reported cash flow and balance sheet data show that growth has been working-capital and investment intensive, supported by higher financing inflows.

The next set of milestones described in the presentation are operational and timeline-based: scaling the CMS subscriber base from 300+ live locations toward the longer-term target, expanding the SFL clinic footprint beyond the current base of around 40 clinics, continuing the Philips portfolio rollout with tablets expected in December 2026, and progressing toward JNPA SEZ commercialization from April 2027.