Osel Devices targets ₹500+ cr revenue in FY27, betting on hearing-aid retail and SaaS
A 3-4x hearing-aid margin uplift via retail, a 1,800-branch bank SaaS deal and an export doubling define the triple-engine growth thesis.
What's new
- FY26 revenue hit ₹292.7 cr (+56.9% YoY), EBITDA ₹53.3 cr at 18.2% margin.
- SFL acquisition enables 3-4x hearing-aid margin uplift, moving from ₹2,500-3,000 government ASP to ₹35,000-40,000 retail.
- LED CMS SaaS platform live at 300 locations; long-term contract signed with a national bank for 1,800-2,000 branches.
- FY27 export target: ₹50 cr, up 117% from ₹23 cr in FY26.
Themes from the call
Demand
All three verticals contributed to FY26 growth; mobile phones reached a 60,000-70,000 unit monthly run rate, and hearing aids serve a domestic TAM of 88 million people with sub-3% penetration.
Margins
The SFL retail shift is the core margin story, lifting hearing-aid ASPs from ₹2,500-3,000 to ₹35,000-40,000 per unit, a 3-4x uplift that should improve EBITDA mix over 4-5 years.
Capital allocation
The JNPA SEZ hub, targeted for April 2027 commercialization, is the main capex commitment, but the total amount is yet to be disclosed pending a finalized project plan.
Guidance watch
- CEO Dipankar Goshal implied FY27 revenue could exceed ₹500 cr ('if the math suggests so, we should be able to achieve that'), pointing to ~70% growth.
- Management expects EBITDA margins to remain similar or improve versus 18.2% in FY26 as the SFL retail mix expands.
- Specific smartphone revenue trajectory and segment-level margin breakups were refused during the call.
Risk flags
- H2 FY26 revenue was flattish sequentially, partly due to ₹25-30 cr of logistics delays from global conflicts, raising questions about the consistency of underlying demand.
- The ₹500+ cr revenue target is directionally implied, not formally guided, and key metrics like smartphone revenue and segment margins remain unquantified.
- JNPA capex magnitude is still to be disclosed, creating a gap in the capital expenditure roadmap.
Key quotes
-
"If the math suggests so, we should be able to achieve that"
— CEO Dipankar Goshal, on a ₹500+ cr FY27 revenue target -
"We are not just a manufacturer supplying someone else's brand; we are moving into the highest value endpoint in each vertical"
— CEO Dipankar Goshal, prepared remarks
The brief
Osel Devices is pitching three growth engines simultaneously: hearing-aid retail via the SFL acquisition, a Philips mobile phone ramp in rural India, and an LED SaaS platform signed to a major bank. The numbers are bold. FY26 delivered ₹292.7 cr in revenue and ₹53.3 cr in EBITDA, and management implied FY27 could cross ₹500 cr. The margin story hinges almost entirely on hearing aids, where moving from government tenders (₹2,500-3,000 ASP) to retail clinics (₹35,000-40,000 ASP) should deliver a 3-4x uplift, but this shift will take 4-5 years to fully materialize.
The SaaS part of the thesis is more embryonic. The CMS platform is live at 300 locations with a long-term contract to digitize 1,800-2,000 bank branches, but SaaS revenue is currently immaterial. The 100,000-unit target is two to three years away from generating meaningful monthly recurring revenue. In the near term, the business is still hardware-driven.
The biggest operational flag is H2 FY26's flat sequential revenue, which management attributed to logistics delays from geopolitical conflicts. That explains one quarter, but it also means the underlying demand momentum is not yet proven beyond the SFL consolidation. The JNPA SEZ hub for exports is another open question: the ₹50 cr FY27 export target (up 117%) depends on an April 2027 commercialization whose capex commitment is still undetermined. For a company at this scale, the number of unquantified moving parts is high.
Osel's triple-engine pitch has the right structure but too many unquantified parts to underwrite the 70% growth it implies.