Osel Devices Ltd

About Osel Devices

Osel Devices makes hearing aids and LED display systems at its manufacturing facility in Greater Noida, Uttar Pradesh. It began producing these products in 2019 after previously undertaking trading activities. In 2025, it acquired an exclusive Philips Mobile brand license in India and added feature phones to its business. The report describes three revenue segments: hearing aids, LED displays and mobile phones.

Investment Rationale

• Revenue and profitability growth: Revenue rose from INR 57.44 Cr in FY21 to INR 186.47 Cr in FY25. EBITDA margin increased from 5.2% to 18% over the same period.
• Multiple product segments: FY25 revenue mix was 55% hearing aids and 45% LED displays. In H1FY26, the mix was LED 48%, hearing aids 35% and mobile 15%.
• Hearing-aid tender access: The report cites MD-5 medical-device certification and BIS licensing as relevant to government tenders. ADIP, Rashtriya Vayoshri Yojana and NPPCD are described as sources of scheme-linked demand.
• Philips mobile launch: The pilot batch of 1,00,000 units was sold out, with a >3,00,000-unit follow-on order in progress. The report notes distribution through 120 distributors across 18 states and 600+ outlets.
• Manufacturing and service model: The company undertakes design, procurement, manufacturing, direct sales and AMC services. The report says AMC contracts can create recurring service revenue from installed projects.

Business and Capacity

Installed annual capacity at Greater Noida is 4,00,000 hearing-aid units and 15,000 Sq. Ft. of LED display systems. FY24 capacity utilisation was 42.48% for hearing aids and 47.50% for LED displays. The report says FY25 and H1FY26 unit-level production data were not disclosed in filings.

Management Guidance and Estimates

• FY26E revenue: INR 300–310 Cr, with revenue growth of 20%–25% YoY.
• Margins and orders: EBITDA margin guidance is 17%–18%; orders in hand as of Dec '25 are estimated at INR 70–80 Cr.
• Balance sheet estimates: The report gives net worth of ₹190–195 Cr for Mar '26, debt/equity below 0.5x and interest coverage of 7–8x.

Osel Devices Key Financials

Revenue and profit increased across the reported full financial years; H1FY26 figures cover six months.

Industry Context

The report points to infrastructure, airports, transit networks, smart-city projects and digital advertising as demand drivers for LED displays. It cites an India LED display market of $0.84B in 2025, with an estimate of $1.30B by 2034 (CAGR 5%). For hearing aids, it cites an India market of $247M in 2025 and an estimate of $389M by 2034 (CAGR 5.1%). These are industry figures cited in the report, not company revenue forecasts.

• LED display applications: The report identifies command centres, airports, transit infrastructure, malls and digital out-of-home advertising as potential sources of demand.
• Hearing-aid demand: Government schemes, ageing demographics and wider adoption of digital and Bluetooth-enabled devices are described as structural demand drivers.

Key Risks

• Customer concentration: Top-10 customers generated 90.76% of FY24 revenue. The report says losing the ALIMCO tender could materially affect hearing-aid revenue.
• Working capital: Gross current assets were 350 days in FY25 and receivable days were 128 days. The report highlights inventory and cash conversion as matters to monitor.
• Imported components: A large portion of LED display and hearing-aid components is imported from China and Taiwan; disruption, tariffs or currency movements could affect costs and margins.
• Philips mobile execution: Feature phones are described as a highly competitive, price-sensitive segment, and manufacturing is currently outsourced. The report highlights sell-through and distribution expansion as watchpoints.
• Related-party governance: Purchases from promoter-owned Osel Technology Pvt Ltd were INR 50.11 Cr (27% of FY25 revenue). The report also notes there is no non-compete agreement and group entities are authorised in identical business lines.
• Cash flow: The report shows H1FY26 reported CFO of 10.70 Cr and restated CFO of (39.96) Cr after adjusting for short-term borrowings classified within operations. It identifies cash generation as a key monitorable.

Our View

Osel Devices has grown its reported revenue and EBITDA while adding mobile phones to its hearing-aid and LED display businesses. The report provides FY26E estimates and describes the Philips distribution rollout as a growth initiative, but also highlights customer concentration, working-capital intensity, cash conversion and related-party governance. It does not state a share recommendation, CMP or target price.

Standard disclosures

• Research Analyst has served as an officer, director or employee of subject company(ies):: No
• We or our associates have received compensation from the subject company(ies) in the past 12 months:: No
• We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months:: No
• We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months: No
• We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report: No
• We or our associates or Research Analyst or his/her relative's financial interest in the subject company(ies): No
• Nature of financial interest in subject company, if any: Nil
• We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of R: No
• Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report: No
• We or our Associates or Research Analyst are engaged in market making of subject company: No
• By referring to any particular sector, Minerva Capital Research Solutions does not provide any promise or assurance of favorable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing. Such representations are not indicative of future results.
• There are either no material conflict of interests or all existing and potential conflict of interest are disclosed herein.

Regulatory disclosures

• Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).
• Registration granted by SEBI and certification from NISM in no way promise or guarantee that the research recommendation will provide any assured, minimum or risk-free return to the investors.
• The research report serves as general information and does not account for individual investment goals, financial situations, or needs. Minerva Capital Research Solutions strives to provide reliable and comprehensive information, sourced from what are believed to be trustworthy channels. However, this information has not been independently verified by Minerva Capital Research Solutions or its analysts, and no guarantees are made regarding its accuracy or completeness. The opinions expressed in this report reflect the views of the research analyst at the time of publication and may change over time. Minerva Capital Research Solutions and its affiliates as on date of publication of this report may or may not hold any positions in the securities discussed. The views presented are general and do not consider individual risk tolerance or investment objectives; therefore, readers should seek independent professional advice before making investment decisions. Minerva Capital Research Solutions does not guarantee a favorable outlook for any specific industry or sector and urges investors to consider all relevant risk factors, including their financial circumstances, before investing. The analyst certifies that their views accurately represent their personal opinions on the companies discussed and that no part of their compensation is tied to specific recommendations made in this report. This material should not be interpreted as an offer or solicitation to buy or sell securities in jurisdictions where such offers would be illegal. Consequently, brokerage and investment services described herein are not available to Canadian or U.S. persons. Distribution outside India requires prior written consent. This Research Report assumes that the recipient will assume all risks associated with its contents. If there are any disagreements or dissatisfaction with this report or its disclaimer, the only recourse is to cease using it. Minerva Capital Research Solutions and its affiliates will not be liable for any direct or indirect losses resulting from the use of this report. Recipients are required to adhere to these restrictions. The material is for the personal use of authorized individuals and does not constitute a solicitation or offer to buy or sell any securities in jurisdictions where such actions would be illegal.
• For any queries or grievances:: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in or guptanishant.iimi@gmail.com | Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In | Equity Research Analyst for this report: Mr. Shubham Upadhyay (shubham.upadhyay@mcapital.in)