The company’s executive chairman Ashok Kumar Gupta told CNBC-TV18 that it expects the new new Bureau of Indian Standards (BIS) regulations to generate around ₹2,000 crore in billing revenue in 2027-28 (FY28), with the company targeting 20-25% margins in the segment,
The stock has been trading with gains for three consecutive sessions. It was up 20% on Tuesday, September 22 as well.
The surge follows after screen protectors for smartphones have been brought under compulsory BIS registration, block deals and a JV proposal with Nothing Electronics.
Screen protectors for smartphones
MeitY has amended the Electronics and Information Technology Goods (Requirement of Compulsory Registration) Order, 2021, adding “screen protectors for smartphones”, which is expected to make it difficult to import substandard products. Gupta said Optiemus has established a factory to cater to the market and plans to supply products across the economy and premium segments.
The CRO provisions apply for conformity with that standard, with effect from April 1, 2027, which is from the date screen protectors can be manufactured, imported, stored or sold in India, only from a BIS-registered factory carrying the standard mark.
“Screen protector is the lifeline for every Indian mobile user,” Gupta said, highlighting the scale of the opportunity. He estimates the Indian screen protector market at ₹18,000-20,000 crore at customer prices, with around 4.5 crore screen protectors sold every month.
Optiemus expects to capture around ₹2,000 crore in billing revenue from the segment in its first year FY28. He said this would be revenue billed to distributors and dealers, rather than the final consumer price, which could be four to five times higher.
The new business could also significantly improve margins. Optiemus currently operates largely as electronics manufacturing services (EMS) company, where margins are around 3%. In contrast, Gupta expects the screen protector business to generate margins of 20-25%.
“The EBITDA margin is around 3%… because in EMS, the margins are a challenging job. But this is our own product,” he said.
Despite the new opportunity, the company is not yet raising its ₹6,000 crore 2028-29 (FY29) revenue guidance. Gupta said Optiemus wants to first assess market traction, customer interest and the strength of its distribution network before giving a revised outlook.
CMF JV proposal
The stock’s 20% surge a day prior was after it announced that it had entered a binding term sheet with Nothing Electronics for a joint venture for the commercialisation and sale of CMF products such as mobile phones and their sub-assemblies and components.
The proposed joint venture with Nothing’s colour material and finishing (CMF) brand remains at an early stage. Optiemus told CNBC-TV18 it is awaiting the definitive agreement and clarity on the government’s mobile manufacturing scheme before finalising its plans and assessing the revenue potential from the partnership.
As per the proposed arrangement, Optiemus Infracom will acquire 51.1% stake in the JV initially, subject to conditions precedent, necessary approvals and execution of definitive agreements.
The expanded partnership will also see the company participate in Nothing’s upcoming Series A investment round for CMF. The firms said the partnership’s aim is to build end-to-end smartphone R&D capabilities in India, which spans industrial design, mechanical, camera, software, connectivity and component engineering.
Gupta said the company would formulate its FY28 plans for the CMF business once the government guidelines and the final agreement are in place.
Block deals
On Wednesday, Optiemus Infracom also witnessed around 15.85 lakh shares, or 1.82% of its equity change hands in block deals at an average price of ₹845 per share for ₹136 crore.
At the end of the June quarter, Optiemus Infracom’s promoters held 71.4% of the company’s equity, while public shareholders comprised 28.6%, as per data available on the stock exchanges.
Stock reaction
Optiemus Infracom shares gained 19.99% to hit an intraday and fresh 52-week high of ₹850.65 per share. The stock was up 14.7% at ₹812.65 apiece at 1.56 pm. It has gained 38.8% in the past month and is up 64.9% this year, so far.
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