Optiemus (OPTIEMUS) Q2 FY27 Revenue Doubles as Profit Margin Shrinks to 2.1%
The electronics manufacturer posted its highest-ever quarterly revenue of ₹983 crore but saw profitability squeezed by a shift to high-volume smartphone assembly and new business incubation.
Optiemus Infracom's Q2 FY27 revenue surged 135% year-on-year to ₹983 crore. However, net profit grew a slower 25% as margins contracted sharply, highlighting the cost of rapid scale-up in a competitive manufacturing landscape.
For Optiemus Infracom, the September quarter was about trading margin for massive scale. The electronics manufacturer delivered its highest-ever revenue, powered by smartphone assembly, but the profit that reached shareholders told a different story.
Revenue hit ₹983 crore, more than double the year-ago figure and up 11% sequentially. Net profit, however, was nearly flat at ₹21 crore, as the net profit margin compressed to 2.1% from 4.0% a year ago.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 983.17YoY +135% | 882.99 | 418.27 |
| Profit (₹ Cr) | 21.01YoY +25% | 21.18 | 16.78 |
| Net Profit Margin (%) | 2.1YoY -47% | 2.4 | 4.0 |
The High-Volume, Low-Margin Engine
The explosive growth came from the core Electronics Manufacturing Services (EMS) vertical. According to a scanx.trade report, smartphone manufacturing alone generated over ₹500 crore in revenue for the second straight quarter. This rapid scale-up in high-volume, lower-margin segments diluted overall profitability.
Employee costs surged 81% year-on-year, reflecting the manpower needed for this ramp-up. Management, cited by Multibagg.ai, also noted that incubation expenses for new ventures in drones and cover glass reduced quarterly EBITDA by ₹3.57 crore and PAT by ₹4.11 crore.
A Sequential Glimmer and a Funding Push
Operationally, there was a slight improvement. The EBITDA margin recovered 64 basis points from the previous quarter to 4.08%, which management attributed to better product mix and operating leverage from a new Noida unit. Yet, profit was held back by a 72% sequential drop in other income, which Multibagg.ai noted was unusually high in the base quarter.
Looking ahead, the company is betting big on a new screen protector business ahead of a mandatory BIS certification deadline in April 2027. It plans to raise ₹200 crore through a securities issue, as reported by Investywise.com, to fund a ₹250-300 crore capex for this segment.
Key Points
- Revenue more than doubled year-on-year to a record ₹983 crore, driven primarily by high-volume smartphone manufacturing contracts.
- Profitability was severely squeezed, with the net profit margin halving to 2.1% due to the lower-margin revenue mix and costs from incubating new businesses.
- Management has sharply raised long-term targets, now aiming for ₹8,500 crore in revenue by FY29, with the new screen protector business as a key pillar.
- The stock fell nearly 10% following the results, according to MarketsMojo, as the market weighed the margin compression against the ambitious growth outlook.
Hexa Perspective
The quarter underscores the classic growth-versus-margin tension in contract manufacturing. Optiemus is successfully capturing volume, but the path to translating that into higher shareholder returns runs through improving mix and achieving operating leverage.
The sharply raised FY29 target of ₹8,500 crore shows high conviction, but it is a projection, not a result. Investors are effectively funding this belief through the planned equity raise. The next few quarters will test whether the margin recovery that began sequentially can be sustained and accelerated as new, potentially higher-margin segments like screen protectors come online.
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