OBSC Perfection Ltd Q4 FY26 Earnings Call — Analysis (NSE: OBSCP)
OBSC Perfection delivered 54% revenue growth in FY26 with 19.5% EBITDA margin, expanded its multi-year order book to ₹1,200+ Cr, and guided for 40–45% revenue growth in FY27 with 100 bps margin expansion.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
FY26 Revenue Growth 54% ( +54% YoY ) . New guidance — FY27 fy27 revenue growth guidance 40%, 45% . New story: Transition to Integrated Sub-Assemblies .
Results
FY26 revenue reached ~₹220 Cr (+54% YoY) with EBITDA margins of 19.5%, aided by a 50% surge in exports and 150% growth in non-automotive segments.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue Growth | 54% | +54% | yoy · FY26 · vs FY25 |
| Revenue | ₹220 Cr | none · FY26 · approximate reported revenue | |
| EBITDA Margin | 19.5% | none · FY26 | |
| Export Revenue Share | 20% | none · FY26 · share of FY26 revenue | |
| Export Sales Growth | 50% | +50% | yoy · FY26 |
| Non-Automotive Sales Growth | 150% | +150% | yoy · FY26 |
| Order Book | ₹1,200 Cr | point_in_time · FY26 · Mar-26 | |
| Automotive Order Book | ₹980 Cr | point_in_time · FY26 · Mar-26 | |
| Non-Automotive Order Book | ₹230 Cr | point_in_time · FY26 · Mar-26 | |
| Preferential Issue Proceeds | ₹43.3 Cr | none · FY26 | |
| Planned FY27 Capex | ₹15-20 Cr | none · FY27 · guidance |
Guidance
Management guided for 40–45% revenue growth in FY27 alongside ~100 bps EBITDA margin expansion and exports expanding to 30–35% of total revenue.
What management committed to
- [OBSC Perfection] guides for 40% to 45% revenue growth in FY27. — 40%, 45%, FY27
- [OBSC Perfection] expects to grow EBITDA margins by 1% [100 bps] in FY27. — 1%, FY27
- [OBSC Perfection] expects export revenue share to exceed 30% to 35% of total revenue in FY27. — 30%, 35%, FY27
- [OBSC Perfection] plans to deploy INR15 crores to INR20 crores as incremental capex for FY27. — INR15 crores to INR20 crores, FY27
- [OBSC Perfection] expects the shock absorber line in Sanand for [Tenneco] to generate approximately INR40 crores of revenue. — INR40 crores, FY27
- [OBSC Perfection] expects AS9100D aerospace certification within two months. — Q1FY27
- [OBSC Perfection] expects its stamping acquisition to be completely done within a couple of months with 32 presses. — 32 presses, Q1FY27
Key themes
Multi-process precision engineering and export acceleration
How the narrative shifted
- Transition to Integrated Sub-Assemblies: Management is intentionally expanding capabilities from pure CNC machining into casting, forging, and stamping to become a low-cost, multi-process sub-assembly provider.
- Global OEM Supply Chain Penetration: Leveraging longstanding domestic supplier status with MNC Tier-1s (Tenneco, ZF, MAHLE) to capture substantially larger global/export mandates in the US and Mexico.
- Non-Auto High Precision Diversification: Aggressively diversifying into high-margin defense munitions, medical implants, solar trackers, and humanoid cold plates to de-risk automotive cyclicality.
- Phased and Frugal Capex Discipline: Committing to phased, modular capital deployment across mega facilities (Supa, Sanand) to maintain asset utilization and avoid fixed-cost margin drag.
- Geopolitical and Currency Tailwind for Exports: China Plus One dynamics and INR depreciation versus the Yuan are strengthening export pricing competitiveness and expanding gross margins.
Operational commentary
- Capacity Expansion: Acquired ~11 acres in Supa for ₹17–18 Cr to consolidate Pune facilities into a single mega facility capable of ₹700–800 Cr peak revenue potential.
- Sanand Facility: Set up a dedicated facility for Tenneco for shock absorber rods, targeting ~₹40 Cr in annual revenue.
- Capabilities Diversification: Broadened from pure CNC machining to cold forging, hot forging, and stamping (acquiring 32 presses for ~₹9 Cr) to transition towards full sub-assemblies.
- Defence Ramp-Up: Commercialized ignition primers for artillery guns, prototyped ammunition casings, and developed MK-84 bomb fins; secured vendor registrations with BDL, YIL, and MIL.
- Aerospace Certification: Nearing completion of AS9100D certification (expected within 2 months), with active RFQ discussions underway with global aerospace clients.
- High-Precision Verticals: Supplied initial lots of cold plates/milled parts for humanoids (>4,000 trial parts) and orthopedic surgical implant castings.
Analyst Q&A
Q. What is the expected revenue conversion timeline for the ₹1,200+ Cr order book?
Management indicated conversion over 5 to 6 years, translating to roughly ₹100–200 Cr of annual incremental revenue starting in FY27.
Q. When will the company become free cash flow positive?
CFO Sanjeev Verma stated that given the 50%+ growth phase and continuous multi-year capex deployment into mega factories and plant additions, it is difficult to give a specific date for positive FCF as internal cash generation is being fully reinvested.
Q. What is the status and capital allocation plan for entering the aerospace segment?
AS9100D audit is in its final leg (expected in 2 months) with supplier registrations underway; capital deployment will start small and scale prudently based on firm RFQ economics rather than upfront speculative capex.
Q. How is OBSC managing US tariffs and export supply chain dynamics?
Provided a temporary 10% price subsidy during peak tariff uncertainty to keep programs viable, but original pricing has resumed as tariffs normalized; major bulk US shipments ramp up in 2–3 months.
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