Optiemus flags margin pressure as mobile manufacturing mix shifts
Management attributed the lower EBITDA margin to high-volume mobile manufacturing while pointing to new capacity and ambitious revenue targets.
Filed 04 Aug 2026, 17:17 IST · after market close · Optiemus Infracom Ltd (OPTIEMUS)
Key takeaways
- Optiemus's consolidated operating margin was 3.44%, 15.25 percentage points below the 18.69% median for seven telecom peers.
- Management said high-volume mobile manufacturing pulled EBITDA margin to 4.68% from 6.80%, while incubation expenses reduced PAT by Rs 245 lakhs.
- Management said FY27 revenue is expected to double and set an approximately Rs 6,000 cr revenue target for FY29.
Price around the results
Mobile mix kept operating profit modest
The consolidated revenue base of Rs 882.99 cr left operating profit at Rs 30.41 cr, as expenses reached Rs 852.58 cr and produced a 3.44% operating margin. Management said the AI+ EMS partnership contributed more than Rs 500 cr in Q1, while Noida Unit 3 came online with 6 million units of annual installed capacity.
High-volume manufacturing weighed on margins
Management said EBITDA margin fell to 4.68% from 6.80% in Q1FY26 because revenue shifted towards high-volume mobile manufacturing. It also said incubation expenses for the Drones and Cover Glass businesses reduced PAT by Rs 245 lakhs. Other income of Rs 10.69 cr was material relative to profit before tax of Rs 28.24 cr, so reported profit was not solely operating-led.
Optiemus ranked second from bottom among seven peers
The company's 3.44% operating margin was 15.25 percentage points below the 18.69% median for the seven telecom peers that had reported the quarter. Management said the new Noida capacity should support a further volume step-up and that it expects EBITDA margins to improve in coming quarters. The company also said the cover-glass facility is ready, with customer onboarding expected over the next three to four quarters, through a 70:30 joint venture with Corning.
Results were filed after market close
The consolidated results were filed after market close on 4 August 2026. The post-results stock reaction is therefore not covered in this note.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹883 cr |
| Other income | ₹11 cr |
| Expenses | ₹853 cr |
| Operating profit | ₹30 cr |
| Operating margin (%) | 3.44% |
| Interest | ₹6 cr |
| Depreciation | ₹7 cr |
| Profit before tax | ₹28 cr |
| Tax | ₹7 cr |
| Net profit | ₹21 cr |
| EPS (₹) | ₹2.39 |
Operating margin of 3.44% compares with a Telecommunication sector median of 18.69% across 7 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Noida Unit 3 came online in Q1 FY27 and is expected to support a further volume step-up.
Guidance & outlook
- The company expects FY27 revenue to double.
- The company targets approximately ₹6,000 crore of revenue by FY29.
- The company expects EBITDA margins to improve in the coming quarters.
Expansion
- Noida Unit 3 was commissioned in Q1 FY27, adding 6 million units of annual installed capacity.
- The cover-glass facility is ready, with customer onboarding expected over the next three to four quarters.
New initiatives
- The AI+ EMS partnership contributed more than ₹500 crore in Q1.
- The cover-glass business is being developed through a 70:30 JV with Corning.
Competition
- The company says it is well positioned to onboard other Indian brands under PLI 2.0.
Problems & risks
- EBITDA margin fell to 4.68% from 6.80%, primarily because revenue shifted toward high-volume mobile manufacturing.
- Incubation expenses for the Drones and Cover Glass businesses reduced overall PAT by ₹245 lakhs.
What to watch
- Whether operating margin improves from 3.44% as management said EBITDA margins would improve in coming quarters.
- Whether Noida Unit 3's 6 million units of annual capacity supports the stated volume step-up.
- Progress toward management's approximately Rs 6,000 cr FY29 revenue target.