Financial Performance Highlights (Consolidated)

Q2 FY27 Performance (Year-on-Year):

  • Revenue: ₹175.56 crores, increased by 40.5%
  • EBITDA: ₹51.25 crores, increased by 17.7%
  • Profit Before Tax: ₹40.33 crores, increased by 37.8%
  • Profit After Tax: ₹30.57 crores, increased by 35.5%

H1 FY27 Performance (Year-on-Year):

  • Revenue: ₹342.22 crores, increased by 50%
  • EBITDA: ₹101.87 crores, increased by 45.4%
  • Profit Before Tax: ₹80.01 crores, increased by 117.3%
  • Profit After Tax: ₹60.29 crores, increased by 117%

Key Financial Ratios:

  • Net Debt-to-Equity Ratio: 0.37 times (compared to 0.34 times in FY26)
  • Return on Equity (annualized): 16.4% (compared to 11.7% for FY26)
  • Return on Capital Employed (annualized): 16.7% (compared to 13.7% for FY26)
  • Net Working Capital Days: 259 days (improved from 294 days at FY26 end)
  • Inventory Days: Improved by 24 days compared to FY26
  • Receivable Days: Improved by 13 days compared to FY26

Business Updates and Operational Metrics

Capacity Utilization:

  • 3 manufacturing facilities with annualized machine capacity of 3.34 million hours as of September 30, 2026
  • Capacity increased by 26.2% compared to 2.65 million hours in FY26
  • Current utilization rate: 68-70%
  • Maximum utilization potential: 80-85%

Revenue Mix (Q2 FY27):

By Industry Segment:

  • Energy: 53.5%
  • Motion Control and Automation: 22.9%
  • Industrial Equipment Systems: 19.4%
  • Other Diversified Applications: 4.2%

By Geography:

  • North America: 65.5%
  • Asia: 20.9%
  • India: 10.8%
  • Europe and United Kingdom: 2.8%
  • Export Revenue: 89% of total revenue

Order Book Position:

  • Total order book as of October 31, 2026: ₹3,178 crores
  • Segment breakdown:
  • Energy: 76%
  • Motion Control and Automation: ~12%
  • Industrial Equipment Systems: ~11.5%
  • Order execution timeline: Programs are long-term, spanning up to 5 years with gradual ramp-up

Strategic Developments and Diversification

New Business Segments:

Defense and Aerospace:

  • First article development orders underway
  • Received certain approvals with additional commercial opportunities in pipeline
  • Supplying machine components and in process for subsystem awards
  • Qualification time: 8-14 months depending on component criticality

Data Center Infrastructure:

  • Successful first article approval completed
  • Commercial orders commenced
  • Components include machine parts and assemblies for cooling systems
  • Margins expected to be consistent with existing business (30-32% range)

Quality and Certification:

  • NADCAP certification program underway and progressing as per schedule
  • NABL accreditation obtained for in-house metallurgical lab in accordance with ISO 17025
  • Strengthened testing credentials and customer qualification requirements

Capacity Expansion and Capital Allocation

Chhapara Facility Expansion:

  • Expansion project underway at Chhapara, Rajkot campus
  • Behind schedule by 1-2 months due to delayed IPO proceeds
  • Expected completion: Next 10-11 months (approximately Q3 FY28)
  • Purpose: Enhance manufacturing capacities and strengthen integrated engineering capabilities

IPO Proceeds Utilization:

  • Total IPO object: ₹418 crores
  • ₹50 crores utilized for debt repayment
  • ₹208 crores utilized for projects overall
  • ₹210 crores unutilized, to be utilized as per schedules

Future Capex Plans:

  • Additional capex planned using debt and internal accruals over next 2-3 years
  • Evaluating Gujarat Viksit Scheme for government support
  • Maintaining asset turnover ratio target of approximately 2x

Financial Management and Guidance

Borrowing and Cost Structure:

  • Average borrowing cost: 8% to 8.25%
  • Finance cost in Q2 FY27: ₹11.73 crores (up 18.5% YoY, 12.2% QoQ)
  • Focus on maintaining prudent capital structure and active borrowing mix management

Margin Guidance:

  • Historical EBITDA margin range: 32-33%
  • Q2 margin compression due to operational leverage from new segment investments
  • Full-year FY27 EBITDA margin guidance: 30-32%
  • Long-term target: Maintain sustainable profitable profile in line with historical range

Growth Outlook:

  • Historical CAGR growth: 30-35% year-on-year
  • FY27 revenue growth expectation: 30-35%
  • Next 2-year growth outlook: 30-35% CAGR
  • Peak revenue potential with expanded capacity: ₹1,100-1,200 crores

Customer and Market Position

Customer Base:

  • 19 years of operation
  • Serves 270+ global customers across 24 countries
  • Focus on large OEM relationships
  • Discussions ongoing for dedicated facilities with customers (preliminary stage)

Market Focus:

  • Primary focus on operation and maintenance side rather than capex projects
  • Strong presence in North American market (65.5% of revenue)
  • Positive outlook across all served industries: oil & gas, motion control automation, defense, gas turbines, data center

Raw Material and Currency Management

Pricing Mechanisms:

  • Raw material price pass-through clauses in contracts
  • Fluctuation absorption range: 5-8% typically
  • Price reviews conducted quarterly, half-yearly, or annually depending on customer contracts

Currency Management:

  • Similar pass-through mechanisms for currency fluctuations
  • Regular review cycles with customers

Q&A Session Highlights

Defense Business:

  • Engaged with major Indian defense players
  • Currently focusing on gas turbine components (excluding blades)

Order Execution:

  • Orders are long-term with no cancellation provisions
  • Execution prioritization based on capacity availability and skill development
  • Gradual ramp-up planned rather than immediate full-scale execution

Other Expenses:

  • Q2 increase due to higher tooling and consumables usage
  • Job work activities for heat treatment and new capacity ramp-ups
  • Expected to normalize over FY27

#Tags: #OmnitechEngineering #Q2Results #EarningsCall #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Neutral