Virtuoso OptoElectronics reports an 85% rise in revenue in the June quarter, with plans to expand capacity across its diversified product portfolio, despite margin pressures and supply chain hurdles.
Virtuoso OptoElectronics has started the new fiscal year with a sharp rise in earnings, as the maker of consumer durables and electronic components reported consolidated revenue of INR 376.6 crore in the June quarter, up 85% from a year earlier. Profit after tax more than doubled to INR 9 crore, according to the company’s earnings call summary, while management stuck to its full-year targets of 35% to 40% revenue growth and EBITDA margins of 9% to 10%.
The growth story rests on a broader push beyond its core air conditioner business. Managing Director Sukrit Bharti said the company is building a more diversified portfolio across air conditioners, compressors, components, electronic manufacturing services and refrigeration products, with a particular emphasis on higher-margin lines. He said the compressor business has already begun dispatching production lots and should benefit from import restrictions, while the air conditioner business can outpace an industry growing at 10% to 15% by offering better pricing, features and service.
Capacity expansion is central to that plan. The company says compressor output is running at more than half of existing capacity ahead of schedule, and output is set to rise from 2.8 million units to 6 million by early next year. Other projects include expanding electronic manufacturing services from 4 lakh to 12 lakh components per hour in two phases, increasing air conditioner capacity to 1.8 million units over the next 12 to 15 months, and lifting deep freezer capacity to 4 lakh units in the next fiscal year. Bharti said the current and planned facilities could support peak annual revenue of about INR 3,500 crore to INR 4,000 crore once fully utilised.
Even so, the quarter also showed the strain of expansion. EBITDA margin stayed flat at 9.3% because of higher raw material costs, especially for imported copper, aluminium and compressors, and the company said the benefit from production-linked incentives will fade in fiscal 2027, trimming EBITDA by about 1%. Working capital days rose to about 85 as the company stocked inventory amid supply concerns and import limits. Virtuoso is also trying to reduce dependence on one large air conditioner customer, whose share of that segment’s sales has fallen to 40% to 45% and is expected to decline further as the company adds more accounts.
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