Virtuoso Optoelectronics Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Virtuoso Optoelectronics Ltd filed with BSE on 03 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Virtuoso Optoelectronics reported FY26 consolidated revenue of INR823 crore, up about 18% year-on-year, with EBITDA rising to about INR86 crore and EBITDA margin improving to 10.4% from 8.6%. Q4 FY26 revenue rose to about INR317 crore from INR240 crore in Q4 FY25. Management discussed capacity expansion plans across EMS, AC, refrigeration and compressor segments, and described margin pressure from raw material costs that was offset through price hikes, product mix and government support.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue: INR823 crores (FY26)
p. 3
“I think we have closed the year at INR823 crores, which is roughly 18% of top line growth, vis-à-vis what we did last year.”
Sajid Shaikh, page 3 of the filed PDF · View the filing
EBITDA: INR86 crores (FY26)
p. 3
“If you see the overall absolute numbers from a 60-odd crores of EBITDA, we have moved to about INR86 crores EBITDA.”
Sajid Shaikh, page 3 of the filed PDF · View the filing
EBITDA margin: 10.4% (FY26)
p. 3
“From an 8.6%, it has moved to 10.4%.”
Sajid Shaikh, page 3 of the filed PDF · View the filing
PAT margin: 1.8% (FY26)
p. 4
“Profit after tax has also shown a slight improvement from a 1.7%, it has moved to 1.8%.”
Sajid Shaikh, page 4 of the filed PDF · View the filing
PAT: INR15 crore (FY26)
p. 4
“On an absolute terms, I think from a INR12 crore ballpark PAT margin that we had in the last year, we have moved to a INR15 crore PAT margin this year.”
Sajid Shaikh, page 4 of the filed PDF · View the filing
Q4 revenue: INR317 crore (Q4 FY26)
p. 4
“From a INR240 crores, we have done INR317 odd crores, kind of a number in Q4.”
Sajid Shaikh, page 4 of the filed PDF · View the filing
Revenue CAGR (FY21 onwards): 49% (FY21-FY26)
p. 4
“The overall from '21 onwards, the CAGR has been 49% as far as revenue is concerned.”
Sajid Shaikh, page 4 of the filed PDF · View the filing
AC customers: 4 (current)
p. 9
“We are currently catering to 4.”
Sajid Shaikh, page 9 of the filed PDF · View the filing
ODM revenue share of AC: between 40% and 50% (FY26)
p. 11
“I believe this year, revenue from ODM was between 40% and 50% out of the AC revenue.”
Sukrit Bharati, page 11 of the filed PDF · View the filing
Average AC realization: about 20-odd thousand
p. 17
“The average realization at a CBO still stays about 20 odd, 20-odd thousand.”
Sajid Shaikh, page 17 of the filed PDF · View the filing
Average compressor realization: INR1,400 to INR1,500
p. 23
“Average realization for compressor is about INR1,400 to INR1,500.”
Sajid Shaikh, page 23 of the filed PDF · View the filing
Cost of borrowing: 8% to 8.25%
p. 24
“Cost of borrowing remains at around 8%, 8% to 8.25%.”
Sajid Shaikh, page 24 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 35%-40% CAGR · next three to five years
stated as an aspiration by Sajid Shaikh
p. 7
“I think we are looking at a 35%, 40% kind of a CAGR going forward in the next three to five years that we have been seeing and we continue to stand with that.”
Sajid Shaikh, page 7 of the filed PDF · View the filing
Compressor capacity — 6 million units · before the end of this financial year
stated firmly by Sajid Shaikh
p. 5
“We want to take it to 6 million before the end of this financial year.”
Sajid Shaikh, page 5 of the filed PDF · View the filing
EMS capacity — 8 lakh CPH in first phase, 12 lakh in second phase
stated firmly by Sajid Shaikh
p. 5
“EMS, from the current 4 lakh CPH, we are moving to 8 lakh in the first phase and 12 lakh in the second phase.”
Sajid Shaikh, page 5 of the filed PDF · View the filing
AC capacity — 1.8 million units · by end of this year
stated firmly by Sajid Shaikh
p. 5
“AC as a set, we are currently sitting on a capacity of about a million. And we look to take it to about 1.8 million by the end of this year.”
Sajid Shaikh, page 5 of the filed PDF · View the filing
EBITDA margin — 9% to 10% · FY27
stated conditionally by Sajid Shaikh
p. 12
“Well, this is a very wishful number. I think we will try and keep it closer to double digits. So, between 9% and 10% is what we expect.”
Sajid Shaikh, page 12 of the filed PDF · View the filing
PAT margin improvement — 50 to 100 basis points improvement · next two years
stated as an aspiration by Sajid Shaikh
p. 18
“But I think a 50 to 100 basis points improvement is expected over the next two years.”
Sajid Shaikh, page 18 of the filed PDF · View the filing
Compressor margin — 6% to 7%, moving toward double digits · next 2 years
stated conditionally by Sajid Shaikh
p. 14
“And with the complete -- hopefully the complete stoppage of import from China, this can move closer to double digits in the next 2 years.”
Sajid Shaikh, page 14 of the filed PDF · View the filing
RAC volume growth — 30% to 40% · FY27
stated as an aspiration by Sajid Shaikh
p. 14
“And growth is going to be around 30%-odd, 30% to 40% growth.”
Sajid Shaikh, page 14 of the filed PDF · View the filing
AC revenue mix — 50% to 60%
stated as an aspiration by Sukrit Bharati
p. 22
“But in general, ballpark figure that we expect is 50% to 60%, yes.”
Sukrit Bharati, page 22 of the filed PDF · View the filing
Net debt addition — INR50 crores to INR60 crores · this year
stated firmly by Sajid Shaikh
p. 17
“But I think in the listed company or the HoldCo if I am talking about there will be a net addition of about INR50 crores, INR60 crores of debt this year.”
Sajid Shaikh, page 17 of the filed PDF · View the filing
Compressor backward integration — about 60% odd value addition · next five years
stated as an aspiration by Sukrit Bharati
p. 14
“The idea is to take it to maybe about 60% odd in the next five years.”
Sukrit Bharati, page 14 of the filed PDF · View the filing
Mainboard migration listing — four to six weeks after NSE in-principle approval
stated conditionally by Sajid Shaikh
p. 10
“Beyond which we are told that there is another four to six weeks that we require for the actual migration to happen.”
Sajid Shaikh, page 10 of the filed PDF · View the filing
Compressor capacity expansion beyond 6 million — 9 million or 10 million · next financial year
stated conditionally by Sukrit Bharati
p. 20
“If we continue to see demand and we are able to sign long term contracts, then we will further look at increasing to maybe a 9 million or 10 million number.”
Sukrit Bharati, page 20 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said price hikes have compensated for raw material cost pressure and expects margins to remain stable barring further macro shocks.
Answered by Sajid Shaikh
Asked by Dhruv Jain: Whether AC margins will hold given raw material price increases and price hikes taken.
p. 7
“Going forward in this year also, we expect the margins to remain where they are, unless of course there are any other macroeconomic jolts.”
Sajid Shaikh, page 7 of the filed PDF · View the filing
Management gave phase-wise timelines for EMS, AC, freezers and compressors.
Answered by Sajid Shaikh
Asked by Siddharth Jain: Timeline for capacity expansions across segments.
p. 8
“EMS is expected to be online, I think, in the next three months time.”
Sajid Shaikh, page 8 of the filed PDF · View the filing
Management said BSE in-principle approval was received, NSE approval expected soon, with listing to follow in four to six weeks.
Answered by Sajid Shaikh
Asked by Raghav Maheshwari: Status of mainboard migration approval and timeline.
p. 10
“So, we have received the in-principle from BSE. We are expecting the in-principle to come from NSE in the next maybe week or so.”
Sajid Shaikh, page 10 of the filed PDF · View the filing
Management attributed margin resilience to product mix shift toward components and the OEM-to-ODM transition.
Answered by Sajid Shaikh
Asked by Shreyansh Jain: How margins were protected despite energy crisis, commodity inflation and BEE norm changes.
p. 11
“I think that was one major factor that helped us keep our margins to that level. Because AC in general is a low margin product, even with the entire series.”
Sajid Shaikh, page 11 of the filed PDF · View the filing
Management said 12% was optimistic and guided to 9-10%.
Answered by Sajid Shaikh
Asked by Bala Murali Krishna: Whether overall margins could reach 12% in FY27 given expansion into compressors, freezers and EMS.
p. 12
“Well, this is a very wishful number. I think we will try and keep it closer to double digits. So, between 9% and 10% is what we expect.”
Sajid Shaikh, page 12 of the filed PDF · View the filing
Management said margins depend on the extent of Chinese import restrictions and expects 6-7% this year, potentially improving over two years.
Answered by Sajid Shaikh
Asked by Kunal Tokas: Revenue contribution and margin outlook for the compressor business in FY27 and beyond.
p. 14
“So, from 100% kind of a situation that we had when we started to a 40% that I spoke about earlier, the margins are going to stay between 6% and 7% this year.”
Sajid Shaikh, page 14 of the filed PDF · View the filing
Management described the restriction as a positive signal since it still forces most demand to be sourced locally.
Answered by Sajid Shaikh
Asked by Garvit Goyal: Impact of import restriction extension on the compressor business.
p. 19
“It's a very positive signal for us. Positive because the restrictions have not been completely lifted, but the allowance that has been given is only up to 40% of the import that any manufacturer would have done in the base year, which is '24-'25, which eventually means that almost 50%, 60% of their requirement, they have to currently buy from us.”
Sajid Shaikh, page 19 of the filed PDF · View the filing
Management said the 6 million target for this year remains, with further expansion to 7.5-9.5 million dependent on demand and contracts.
Answered by Sukrit Bharati
Asked by Hitaindra Pradhan: Whether the QCO order and competitor capacity additions changed compressor expansion timelines.
p. 20
“But we still believe that 6 million is a number that we will be able to fill. If there is opportunity, we will look at growing further to 7.5 million or maybe 9.5 million, 6 million was more to optimize the line productivity.”
Sukrit Bharati, page 20 of the filed PDF · View the filing
Management estimated a 10-15% pass-through of raw material cost increases across the industry.
Answered by Sukrit Bharati
Asked by Shrey Patel: How much of raw material cost increases have been passed through to customers.
p. 21
“But general thumb rule, like I mentioned is about 10% to 15% pass through that has happened overall across the industry so far.”
Sukrit Bharati, page 21 of the filed PDF · View the filing
Management reiterated the 35-40% CAGR guidance on the INR825 crore base rather than a fixed absolute number.
Answered by Sajid Shaikh
Asked by Garvit Goyal: Why FY27 revenue guidance appears lower than the earlier INR1,200 crore target.
p. 24
“FY27, I think we have said that we are going to have a 35%, 40% CAGR, on an INR825 crore base, 35%, 40% is closer to the number that you are saying.”
Sajid Shaikh, page 24 of the filed PDF · View the filing
Management said the jump from INR800 crore to INR2,500 crore in two years was ambitious and would take longer.
Answered by Sajid Shaikh
Asked by Bala Murali Krishna: Whether the INR2,500 crore revenue potential after capex completion could be reached by FY28.
p. 23
“I think a jump from INR800 crores to INR2,500 crores in two years is a big ask. I think it probably will come, but it will take a little more time.”
Sajid Shaikh, page 23 of the filed PDF · View the filing
Risks flagged
Raw material price volatility affecting margins until prices stabilize
p. 8
“But till the final RM price is derived or the market price is established, our pricing is difficult to completely become immune to the fluctuation.”
Sukrit Bharati, page 8 of the filed PDF · View the filing
Margin pressure from being an OEM/ODM segment newly introduced with lower relative margins
p. 8
“Just to add to that, the reason why, I mean, our margins were already below or lower because we were an OEM and ODM range has recently been introduced.”
Sukrit Bharati, page 8 of the filed PDF · View the filing
Execution risk on capacity expansion plans not always fully materializing as planned
p. 12
“So see, plans are definitely plans. I mean, 100% execution of plans is not always in our control.”
Sukrit Bharati, page 12 of the filed PDF · View the filing
Uncertainty over future PLI scheme renewal
p. 22
“There is no concrete roadmap as of now that we know of.”
Sukrit Bharati, page 22 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.