OPTIEMUS - Optiemus Infra.

📊 NSE: OPTIEMUS 🏢 Trading 📅 Last Updated: 12/14/2025 10:43

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue grew 148% YoY in Q2 FY26 to INR 251.36 Cr, driven by higher production volumes. Consolidated revenue for Q2 FY26 was INR 418.27 Cr, a 12% decline YoY due to shipment timing and product-mix changes. Standalone revenue for FY25 was INR 591.53 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company operates 27 regional branches and has a pan-India distribution network with over 10,000 retail partners.

Profitability Margins

Standalone Net Profit Margin was 5.53% in FY25, down from 6.62% in FY24. Consolidated PAT for Q2 FY26 grew 33% YoY to INR 3.63 Cr, reflecting improved cost discipline despite lower revenue.

EBITDA Margin

Consolidated EBITDA margin expanded to 8.01% in Q2 FY26. Standalone EBITDA for Q2 FY26 grew 117% YoY to INR 8.82 Cr (3.51% margin). FY25 standalone operating profit margin was 4.58%, a 46.95% decrease from 8.64% in FY24 due to revenue shifts.

Capital Expenditure

The company is raising ~INR 434 Cr through preferential equity and warrants to fund equity investment in BIGTECH, partial debt repayment, and working capital for FY26-FY27. INR 145 Cr was already raised as of March 2025.

Credit Rating & Borrowing

Ratings reaffirmed at [ICRA]BBB- (Stable) / [ICRA]A3 in March 2025. The company previously withdrew CARE ratings in 2022 after repaying bank facilities. A corporate guarantee of INR 45 Cr was issued for subsidiary OEL to secure import credit.

⚙️ Operational Drivers

Raw Materials

Electronic components for assembly, mobile handset parts, and raw materials for cover glass manufacturing (70% of total cost estimated for EMS operations).

Import Sources

China (primary source), with active strategic efforts to identify alternate sourcing markets to reduce dependency.

Key Suppliers

Lianzhou Technologies Co., Ltd (for raw material imports under a USD 45 Cr credit arrangement), Nokia, and Samsung (historical distribution partners).

Capacity Expansion

Setting up a new cover glass manufacturing facility in Tamil Nadu via Bharat Innovative Glass Technologies (BIGTECH). Standalone growth of 148% in Q2 FY26 was driven by recent capacity ramp-ups and new customer wins.

Raw Material Costs

Raw material costs are a significant portion of the INR 571.99 Cr total standalone expenditure in FY25. Procurement strategies include monthly physical stock checks and establishing alternate supplier relationships.

Manufacturing Efficiency

Inventory turnover ratio improved 84.47% to 1151.78 times in FY25 due to a substantial decrease in average inventories, indicating high throughput efficiency.

Logistics & Distribution

Distribution network includes 650+ micro/macro distributors and 10,000+ retail partners. Logistics costs are managed through a pan-India network to support the EMS and distribution segments.

📈 Strategic Growth

Expected Growth Rate

148%

Growth Strategy

Growth is targeted through the expansion of the Electronics Manufacturing Services (EMS) segment, the launch of the BIGTECH cover glass facility in Tamil Nadu, and scaling the Unmanned Systems (drones) division incorporated in June 2024.

Products & Services

Mobile handsets, hearables, wearables, IoT technologies, drones (unmanned systems), and cover glass for electronic devices.

Brand Portfolio

Blackberry (brand rights for 4 countries), Optiemus, and distribution partnerships with Nokia and Samsung.

New Products/Services

Entry into the Unmanned Systems (drones) market via Optiemus Unmanned Systems Private Limited and cover glass manufacturing via BIGTECH JV with Corning.

Market Expansion

Expanding manufacturing footprint in Tamil Nadu and targeting emerging markets where smartphone and 5G adoption remains strong.

Market Share & Ranking

Established position as a leading contract manufacturer in India for electronics, though specific market share percentage is not disclosed.

Strategic Alliances

Joint Venture with Corning International Corporation (30% stake in BIGTECH) for cover glass manufacturing. Partnership with Lianzhou Technologies for raw material sourcing.

🌍 External Factors

Industry Trends

The EMS industry is growing due to the 'Make in India' initiative and 5G rollout, but remains characterized by low margins and high competition. The shift toward 'job-work' models is helping improve margins slightly.

Competitive Landscape

Intense competition from other EMS players and OEMs who may shift business; margins are constrained by the presence of numerous players with similar capabilities.

Competitive Moat

Moat is built on a 25-year distribution history, a pan-India service network of 700+ centers, and a strategic JV with Corning for specialized cover glass, which is a higher value-add than simple assembly.

Macro Economic Sensitivity

Highly sensitive to 5G network expansion and consumer demand for high-speed data, which fueled growth in the mobile services segment in FY25.

Consumer Behavior

Increased consumer demand for hearables, wearables, and high-speed 5G-enabled devices is driving the shift in product mix toward IoT technologies.

Geopolitical Risks

Significant risk from dependency on Chinese suppliers; the company is actively developing alternate sourcing markets to mitigate potential trade barriers.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to government regulations on import duties, PLI scheme compliance, and EHS rules. Failure to meet these can lead to operational restrictions.

Environmental Compliance

Strictly follows EHS (Environment, Health, and Safety) benchmarks across all processes; initiatives extend to communities around facility locations.

Taxation Policy Impact

The company adheres to local statutory requirements and evolving regulations related to import duties and taxation, which significantly impact the cost of imported components.

Legal Contingencies

The company maintains a centralized compliance calendar to track regulatory obligations. Specific values for pending court cases are not disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Potential time or cost overruns in the BIGTECH project could weaken the liquidity profile. Revenue concentration in a few OEMs poses a risk of significant revenue volatility.

Geographic Concentration Risk

Heavy reliance on the Indian market for sales and China for procurement; 100% of manufacturing capacity is currently concentrated in India (Noida and Tamil Nadu).