Virtuoso Optoelectronics Ltd

Financial Performance

• Q1 FY27 consolidated revenue INR 376.6 crores; up 85% YoY vs Q1 FY26.
• PAT INR 9 crores; up ~103% YoY from INR 6.4 crores in Q1 FY26.
• EBITDA margin ~9.3%; stable vs Q4 FY26.
• Q4 FY26 revenue up ~18.7% YoY; margins in line with recent quarter.
• FY27 revenue mix: AC ~60%; EMS ~10%; Commercial refrigeration ~10%; Components ~5%; Compressors ~15%.

Operating Update

• EMS capacity to 12 lakh cph in two phases; Phase 1 8 lakh by Sep.
• AC capacity to 1.8 million units; two phases over 12–15 months.
• Deep freezers capacity to 2.5 lakh by Q3; phase 2 to 4 lakh next year.
• Compressor capacity to 6 million; likely by Dec/Jan; commercial production in Q4 FY27.
• Revenue mix guidance: AC ~60%; EMS ~10%; Commercial refrigeration ~10%; Components ~5%; Compressors ~15%.

Capex and Projects

• VOEPL capex this year guided at INR 80–100 crores.
• Compressor program: ~INR 500 crore total; Phase 1 funded by equity + INR 150 crore OCD.
• Next phase funding to be debt or equity; decision within 12 months.
• Commercial refrigeration capex: INR 20–25 crores this year; similar next year for 4 lakh capacity.
• 22-acre land acquired for compressor consolidation; future expansion at a single site.

Guidance and Outlook

• Maintain FY27 guidance: 35–40% revenue growth; EBITDA margin 9–10%.
• Upward revision possible after Q3 based on H1 and Q3 execution.
• Net margin target for FY27: 2–3% (tax/other factors may blur exact outcome).

Q&A Highlights

• Top AC customer Voltas ~40–45% of AC revenue; diversification with additional customers planned.
• AC margins: ODM vs OEM impact ~1–1.5%; overall EBITDA guidance unchanged.
• Peak revenue with expansion: INR 3,500–4,000 crores at full capacity.
• OCD debt cost is mid-teens; working-capital days around 85.

Meeting Details

• Date: August 17, 2026; time not disclosed.
• Type/Mode: Virtual investor conference call.
• Event/Organizer: Investors Conference Call for unaudited results for quarter ended June 30, 2026.

Participants

• Key participant: Company Secretary and Compliance Officer.

Purpose

• Purpose: Discuss unaudited results for the quarter ended June 30, 2026.

Additional Notes

• Recording of the conference call is available on the company website and on YouTube.

Meeting Details

• Date: August 17, 2026.
• Type: Investors conference call.
• Organiser: Virtuoso Optoelectronics Limited.

Participants

• Company Secretary and Compliance Officer as company representative.

Purpose

• Discuss unaudited financial results for quarter ended March 31, 2026.

Availability

• Recording available on company website; YouTube link provided.

Business overview

• Integrated OEM/ODM player in consumer durables: ACs, refrigeration, EMS, compressors.
• Backward integration across polymers/EPS, heat exchangers; multi-category expansion.

Operational highlights

• Q1FY27 net sales ₹3,758.8 Mn; YoY growth 85%, QoQ 18.6%.
• EBITDA ₹351.1 Mn; margin 9.3%.
• Compressor production started; >50% utilization; 3 months ahead of schedule.
• ODM range launched in ACs; new marquee customers added.
• New facilities ramping: Nashik Phase 2, Sanand, Chennai; utilization >75%.
• Non-AC segments contribute ~40% of revenue; diversification ongoing.
• EMS capacity expansion; Deep Freezers and ACs/compressors capacity ramp detailed in plan.

Financial performance

• Revenue ₹3,758.8 Mn; YoY growth 85%; QoQ 18.6%.
• EBITDA ₹351.1 Mn; margin 9.3%.
• PBT ₹130.1 Mn; margin 3.5%.
• PAT ₹90.5 Mn; margin 2.4%.
• Depreciation rising due to capacity expansion; EPS ₹2.84.

Strategic priorities & outlook

• Capex-driven capacity ramp at Nashik, Sanand, Chennai; target utilization >75%.
• Deepen backward integration; expand EPS, plastics, CFF; scale-up tool room.
• Expand ODM/OEM relationships; continue product development for higher-margin offerings.
• Growth drivers include strong domestic demand, policy incentives (PLI), and localization.

Governance & leadership

• Managing Director: Sukrit Bharati; CFO: Sajid Shaikh.
• Acquired 51% stake in subsidiary YLP Solutions Pvt Ltd.
• 22-acre land acquired for compressor expansion under VCPL; formation of Virtuoso Compressors.

Transaction summary

• Target: Virtuoso Optoelectronics Limited.
• Acquirer and PAC: Malabar India Fund Limited.
• Acquirer not part of promoter/promoter group.
• Stock exchanges: BSE and NSE.
• Mode: preferential allotment.
• Date of acquisition: 12 Aug 2026.

Holding changes

• Pre-acquisition voting rights: 32,51,923.
• Encumbrances/VRs/Warrants: Nil.
• Total pre-acquisition: 32,51,923 (9.98%).
• Acquired voting rights: 14,04,494.
• Post-acquisition voting rights: 46,56,417 (13.32%).
• Equity share capital before: 3,25,65,679.
• Equity share capital after: 3,42,51,071.
• Total diluted capital after: 3,49,53,317.

Meeting Details

• Date and time: Monday, August 17, 2026 at 12:00 IST
• Mode: Virtual conference call via Zoom
• Type: Group investor conference call
• Event: Q1 FY27 Post Earnings Conference Call
• Re-scheduled from Aug 11, 2026 to Aug 17, 2026

Participants

• Key company participants: Managing Director and Chief Financial Officer

Purpose

• Purpose: post-earnings results discussion with investors

Additional Notes

• Call will be recorded (in line with SEBI regulation)
• Joining details to be emailed post-registration

Issue Overview

• Type of issue: Preferential issue of fully convertible share warrants.
• Issue size and net proceeds: Rs 140 crore; fully subscribed with no undersubscription.
• Main objectives: Acquisition of fixed assets, long-term working capital, and general corporate purposes.

Utilisation of Proceeds

• Utilisation as per offer document: Yes; no non-compliance reported.
• Deviations or changes: Nil.
• Acquisition of Fixed Assets: 13.77 utilised; ongoing.
• Long-term Working Capital: 66.75 utilised; ongoing.
• General Corporate Purpose: 34.48 utilised; ongoing.
• Unutilised funds: Nil.
• Funds raised till Jun 30, 2026: Rs 115 crore.
• Means of finance: No change from disclosed objects.
• Approvals obtained: Principal approval from BSE.
• No material deviations observed vs earlier MA reports.

Governance and Compliance

• Approvals obtained: Yes; principal approval from BSE documented.
• Deviation from disclosures: Nil.
• Material events affecting viability: None reported.
• Shareholder approvals: Not required as there are no deviations.
• Regulatory filings and monitoring arrangements: Ongoing as per MA agreement.

GCP

• GCP utilisation: 34.48 crores for salaries, new projects, and other general purposes.
• Board approval for allocation: not explicitly indicated.
• GCP cap: Not more than 25% of proceeds allocated to GCP as per offer document.
• Unspent GCP: 0.00 as of quarter end.

Fundraising and deviation status

• Purpose: Statement of deviation/variation in utilization under Reg 32 for the quarter.
• Mode of fund raising: Preferential Issue.
• Amount raised: NIL.
• Date of raising funds: NIL.
• Report filed for the quarter.
• Monitoring agency involvement: Applicable; agency details provided.
• Deviation: No deviation reported.
• Status of fund utilisation: NIL as no funds were raised.