Financial Performance FY 2025-26

Omax Autos Limited reported strong financial results with revenue from operations growing 31% to ₹484.50 crore (FY25: ₹369.26 crore) and profit after tax surging 72% to ₹37.04 crore (FY25: ₹21.55 crore). EPS increased to ₹17.32 from ₹10.07. The company achieved significant operating leverage with EBITDA margin expanding to 17.6% from 15%.

Balance Sheet & Capital Management

The company reduced total borrowings by approximately one-third to ₹47.00 crore (FY25: ₹70.00 crore) and cleared residual term loans post-year-end. Net cash & investments stood at ₹110.00 crore, resulting in net-cash positive status. Debt-equity ratio improved to 0.18 from 0.27, while ROCE doubled to 16% from 8%. Gearing ratio improved to 17.47% from 28.58%.

Dividend Declaration & Capital Allocation

The Board declared an interim dividend of 25% (₹2.50 per share) paid on May 15, 2026, and recommended a final dividend of 25%, resulting in total dividend payout of 50% for FY26 (FY25: 25%). Cash generation was deployed across debt reduction (~₹24 crore), dividend distribution (~₹5.4 crore), disciplined capex (~₹4 crore), and treasury investments.

Operational Highlights & Customer Concentration

The company operates three manufacturing plants in Uttar Pradesh with twelve process capabilities, serving anchor customer Tata Motors for CV chassis frames and long members, Indian Railways for coach components, and emerging electric vehicle segments. Revenue concentration remains high with one major customer contributing ₹46,111.30 lakhs (46% of total revenue).

Corporate Governance & Management Changes

The Board comprises nine directors with key appointments including Mr. Sanjeev Kumar as CFO (July 2025) and Ms. Kannu Sharma as Company Secretary (July 2025). The Board approved reappointments of directors and revised remuneration for MD Devashish Mehta to ₹2 crore annually. The 43rd AGM is scheduled for August 29, 2026.

Risk Management & Financial Ratios

The company maintains strong liquidity with current ratio improving to 1.71 times. Foreign currency risk is minimal, while interest rate risk exposure is manageable. Key ratios showed improvement: return on equity increased to 11.2% from 7.0%, inventory turnover improved to 44.01 times, and net profit ratio increased to 7.65% from 5.84%.

Related Party Transactions & Compliance

All related party transactions were conducted at arm's length basis, including payments to Automax Constructions Limited (₹28.70 lakh) and rent paid to Kiran Mehta (₹59.25 lakh). The company maintained full regulatory compliance with SEBI LODR regulations, secretarial audit with no adverse remarks, and statutory audit without qualifications.

Outlook

The macro environment for FY26-27 remains constructive with Indian CV industry in double-digit growth. The company expects modest capex funded from internal accruals and intends to sustain meaningful dividend distribution while maintaining net-cash status and deepening existing customer relationships.