Virtuoso Optoelectronics Q2 FY27 results: net profit up 5.9% to ₹2.69 crore, revenue down 41.2%

How did Virtuoso Optoelectronics perform in Q2 FY27?

Virtuoso Optoelectronics reported consolidated revenue of ₹177.08 crore for Q2 FY27, down ₹123.94 crore or 41.2% from ₹301.02 crore in Q2 FY26 and down ₹198.80 crore or 52.9% from ₹375.88 crore in Q1 FY27. EBITDA was ₹19.80 crore, down 34.4% year on year and 42.3% sequentially, while the margin increased to 11.2% from 10.0% and 9.1%, respectively.

Consolidated profit before tax was ₹1.87 crore, down 73.6% from ₹7.08 crore in Q2 FY26 and 85.6% from ₹13.01 crore in Q1 FY27. Net profit was ₹2.69 crore, compared with ₹2.54 crore a year earlier and ₹9.05 crore in the previous quarter; basic EPS was ₹0.78 against ₹2.20 and ₹2.84, respectively. On a standalone basis, revenue was ₹156.62 crore and profit after tax was ₹1.83 crore, with profit before tax of ₹3.27 crore.

What changed in Virtuoso Optoelectronics' costs and profit?

Total expenses fell ₹119.17 crore or 40.3% to ₹176.31 crore from ₹295.48 crore in Q2 FY26. Cost of materials declined ₹103.60 crore to ₹150.54 crore, employee cost fell ₹4.42 crore to ₹7.46 crore, finance costs were lower by ₹5.52 crore at ₹10.01 crore and depreciation declined ₹0.08 crore to ₹9.01 crore; other expenses increased ₹0.69 crore to ₹7.60 crore. Other income fell ₹0.44 crore to ₹1.09 crore, and there was no exceptional item.

The tax line moved from an expense of ₹4.54 crore in Q2 FY26 to tax credit of ₹0.82 crore in Q2 FY27, a ₹5.36 crore reduction, while profit before tax declined ₹5.21 crore to ₹1.87 crore. Net profit consequently rose ₹0.15 crore to ₹2.69 crore. The filing did not state a further reason for the movement in other expenses or tax.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹1,197.53 crore, up from ₹969.16 crore at 31 March 2026, while total equity was ₹515.85 crore against ₹412.37 crore. Borrowings rose to ₹471.51 crore from ₹276.53 crore, and cash was ₹33.88 crore compared with no cash at the previous balance sheet date; inventories increased to ₹314.82 crore from ₹227.39 crore.

Trade receivables fell to ₹61.88 crore from ₹72.22 crore, while trade payables declined to ₹114.83 crore from ₹150.69 crore. For the first half of FY27, operating cash flow was negative ₹105.84 crore, compared with negative ₹49.82 crore in H1 FY26; investing cash flow was negative ₹121.21 crore against ₹12.62 crore, while financing cash flow was ₹259.92 crore against ₹35.0 crore. Capital expenditure was ₹73.69 crore, against negative ₹12.62 crore in the earlier period.

How has Virtuoso Optoelectronics done over the last 8 quarters?

Revenue reached its highest level in the listed series at ₹375.88 crore in Q1 FY27 and fell to ₹177.08 crore in Q2 FY27, the lowest quarterly figure shown after ₹203.19 crore in Q1 FY26. EBITDA margin peaked at 11.8% in Q3 FY26, bottomed at 6.4% in Q4 FY25 and rose to 11.2% in Q2 FY27.

Net profit was highest in the listed series at ₹9.05 crore in Q1 FY27 and fell to ₹2.69 crore in Q2 FY27; the lowest reported profit was ₹2.54 crore in Q2 FY26. Profit rose year on year in each of the last two quarters, while the latest quarter showed a sequential decline in revenue, EBITDA and profit.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review report, on 6 November 2026. The results were also approved for publication in one English and one vernacular newspaper. No dividend or fund-raising announcement was included in the same-day filings provided.

The board approved the appointment of J Vishnuvardhan as an Additional Director and Non-Executive Independent Director effective from 1 December 2026. His appointment as an Independent Director for five years, ending on 30 November 2031, is subject to shareholder approval.

What did Virtuoso Optoelectronics' management say?

Management said new facilities at Nashik, Sanand, Chennai and VPPL were ramping up, with the stated objective of increasing utilisation above 75%. It said FY27 revenue growth would be significantly driven by filling existing capacity, described as a high-margin, low-incremental-capex growth path, and that compressor production was running at more than 50% utilisation, three months ahead of schedule.

Management set out an expected FY27 revenue mix of approximately 60% from air conditioners, 15% from compressors, 10% from EMS, 10% from commercial refrigeration and 5% from components, washing machines and others. It also aimed to raise the in-house component mix from 60% toward 75%+ and described the FY27 EMS capacity target as 8L cph, with planned Phase 2 capacity of 12,00,000 cph.

Management said the air-conditioner segment had a strong order book for the upcoming season and that the company had launched an ODM range in air conditioners while working with additional customers. It identified higher depreciation as reflecting the commissioning of new manufacturing capacity and ongoing expansion investments, while interest expense also rose; the presentation said the customer base had broadened to 8–10 customers.