Revenue fell 52.89% QoQ, but operating margin rose 2.05 points
The consolidated profit decline was amplified by an 85.63% fall in pre-tax profit, while other income and a negative tax rate shaped reported earnings.
Filed 06 Nov 2026, 11:50 IST · Virtuoso Optoelectronics Ltd (VOEPL)
Key takeaways
- Consolidated revenue fell 52.89% QoQ to Rs 177.08 cr, but costs fell faster at 53.95%, lifting operating margin by 2.05 percentage points.
- Net profit fell 70.28% QoQ to Rs 2.69 cr as pre-tax profit fell 85.63%, with other income contributing 58.29% of PBT and the tax rate at -43.75%.
- Operating margin recovered to 11.18% from 9.13% in Q1FY27 but remained 0.38 percentage points below the 11.56% median of 266 reported Consumer Discretionary peers.
Price around the results
A sharper revenue drop than in Q1, but costs fell faster
Virtuoso Optoelectronics' consolidated revenue declined 52.89% sequentially, while expenses declined 53.95%, so the cost base contracted faster than sales. That lifted operating margin by 2.05 percentage points to 11.18%, despite operating profit falling 42.32%. The margin was 0.38 percentage points below the 11.56% median among 266 Consumer Discretionary peers that had reported.
Reported profit was weak and reliant on below-the-line items
Pre-tax profit fell 85.63% QoQ even as interest declined 16.58% and depreciation declined 10.79%; the lower finance and depreciation charges were not enough to offset the drop in operating profit. Other income represented 58.29% of PBT, while the tax rate moved down 74.19 percentage points to -43.75%, both making net profit less representative of operating performance. Net profit consequently fell 70.28% to Rs 2.69 cr.
Margin recovered after two quarters near 9%, while management outlines diversification
Operating margin moved from 9.17% in Q4FY26 to 9.13% in Q1FY27 and 11.18% in Q2FY27, marking a recovery rather than a continued decline. Management said it is targeting sustained revenue growth of 35–40% CAGR and expects non-AC segments to contribute approximately 40% of FY27 revenue. The presentation also lists planned EMS capacity of 4,00,000, 8,00,000 and 12,00,000 cph, alongside air-conditioner capacity figures of 10,00,000 and 18,00,000 units; management said the company is reducing its dependence on ACs through adjacent categories and is manufacturing refrigeration compressors through a technology partnership with a Chinese group.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹177 cr | ₹376 cr | -52.89% |
| Other income | ₹1 cr | ₹1 cr | +39.74% |
| Expenses | ₹157 cr | ₹342 cr | -53.95% |
| Operating profit | ₹20 cr | ₹34 cr | -42.32% |
| Operating margin (%) | 11.18% | 9.13% | — |
| Interest | ₹10 cr | ₹12 cr | -16.58% |
| Depreciation | ₹9 cr | ₹10 cr | -10.79% |
| Profit before tax | ₹2 cr | ₹13 cr | -85.63% |
| Tax | ₹-1 cr | ₹4 cr | — |
| Net profit | ₹3 cr | ₹9 cr | -70.28% |
| EPS (₹) | ₹0.78 | ₹2.84 | -72.54% |
Operating margin of 11.18% compares with a Consumer Discretionary sector median of 11.56% across 266 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- VOEPL is targeting sustained revenue growth of 35–40% CAGR.
- Non-AC segments are expected to contribute approximately 40% of revenue in FY27.
Expansion
- The presentation lists planned EMS capacity figures of 4,00,000, 8,00,000 and 12,00,000 cph.
- Air-conditioner capacity figures are shown as 10,00,000 units and 18,00,000 units.
New initiatives
- VOEPL is manufacturing refrigeration compressors through a technology partnership with a Chinese group.
Competition
- VOEPL describes itself as among the first Indian small or medium companies manufacturing refrigeration compressors domestically.
Problems & risks
- VOEPL says its dependence on air conditioners is gradually reducing through diversification into adjacent categories.
What to watch
- Whether consolidated revenue recovers from Rs 177.08 cr in the next quarter.
- Whether operating margin holds above 11.18% after the 2.05-percentage-point sequential recovery.
- Whether other income remains a material contributor after accounting for 58.29% of Q2FY27 PBT.