Omnitech Engg. Q1 FY27 Earnings Call — Analysis (NSE: OMNI)

Omnitech Engineering Q1FY27 revenue surges 61.5% YoY to ₹166.6 Cr, PAT jumps 468.7% YoY; order book crosses ₹3,000 Cr

10 Aug 2026 · Analysis by Alpha Inflection

Result quality: strong — Margin expansion. Management sentiment: optimistic.

The take

Q1FY27 Revenue ₹166.6 Cr ( +61.5% YoY ) . New guidance — FY28 fy28 revenue growth 35% to 40% . New story: Massive capacity expansion underway .

Results

Revenue ₹166.6 Cr +61.5% YoY; EBITDA ₹50.62 Cr +90.8% YoY; PAT ₹29.73 Cr +468.7% YoY; net working capital days improved to 233 from 294

Financial highlights

Guidance

FY28 revenue growth projected at 35–40% with EBITDA margin of 30% and above; ₹250 Cr capex on two new Chhapara facilities to add ~10–11 lakh machine hours

What management committed to

• [Omnitech Engineering] expects to operationalise two new facilities at [Chhapara] over the next 14 months, adding manufacturing capacity — Q3FY28
• Overall capex for the two new [Chhapara] facilities is ~₹250 Cr (₹100 Cr building, ₹150 Cr plant & machinery); of the machinery ~₹25 Cr is for existing Chhapara and the rest for the new plants — ₹250 Cr, FY28
• Upon completion of the two new [Chhapara] plants, annualised machine hour capacity will increase to 42–43 lakh hours from the current ~32 lakh hours — 42 lakhs to 43 lakhs, FY28
• FY28 consolidated revenue is projected to grow 35‑40% year‑on‑year — 35% to 40%, FY28
• FY28 EBITDA margin is expected to be in the range of ‘30% and above’ — 30% and above, FY28
• Gross margin is expected to remain in the 68–71% range going forward — 68% to 71%
• The two large orders of ~₹2,000 Cr (including [Weatherford >$100M]) will be executed over a timeline of 4–5 years — ~₹2,000 Cr, FY31
• The remaining ~₹1,000 Cr of the order book (short‑cycle and moderate‑cycle) will be fulfilled within 6–18 months — ~₹1,000 Cr, Q3FY28
• Net working capital days will improve by a further 10–20% from the current 233 days — 10% to 20% improvement
• Depreciation charge going forward will be stable after the shift from WDV to straight‑line method from FY27

Key themes

Capacity expansion and diversifying beyond energy

How the narrative shifted

• Massive capacity expansion underway: Management is investing ₹250 Cr to double down on capacity, positioning to capture growing global demand and execute the >₹3,000 Cr order book.
• Multi‑year order book locks visibility: A ₹3,000 Cr+ order book, anchored by two multi‑year large orders, provides revenue visibility for several years, with disciplined intake to avoid overcommitment.
• Revenue mix diversification away from energy: Energy share fell from ~53% to 49% QoQ; motion control, industrial equipment and early defense/aerospace flows are lifting the ‘others’ bucket, reducing single‑sector dependence.
• Export dominance and geographic rebalancing: Exports remain 78% of revenue, with North America at 52%. Management aims to grow Middle East and Europe to mitigate geographic concentration risk.
• Aerospace & defense as next growth vertical: Nadcap certification and first‑article approvals for OEMs/tier‑1s underway; margins expected to be better than existing business, with revenue build‑up over 1–3 years.
• Working capital normalisation journey: NWC days improved sharply by 61 days QoQ; management targets a further 10–20% reduction while balancing growth and new product development needs.
• Macro resilience through pass‑through & hedging: neutral

Operational commentary

• Order book >₹3,000 Cr as of July 31, 2026; includes Weatherford multi‑year order >$100M and another large order, together ~₹2,000 Cr to be executed over 3–5 years
• Two new world‑class manufacturing facilities under construction at Chhapara, total capex ₹250 Cr (₹100 Cr building, ₹150 Cr plant & machinery); annualised machine hour capacity to increase from 3.2M to 4.2–4.3M hours on completion
• Revenue mix shifting: energy contributed 49% (down from 52.7% in Q4FY26), motion control & automation 24%, industrial equipment 19%, others 7% (includes initial defense/aerospace flows)
• Export revenue 78% of total; North America 52%, Asia 27%, India 17%, Europe & UK 3%
• Nadcap certification process for aerospace processes underway; first‑article approvals progressing for defense & aerospace OEMs and tier‑1 suppliers
• 1.2 MW solar plant commissioned from IPO capex, already contributing to cost
• Depreciation method changed from written‑down value to straight‑line effective FY27, to provide stable depreciation charge
• Annualised machining capacity up ~20.7% vs FY26, providing headroom for existing order book and new programmes
• Net working capital days improved 61 days sequentially via inventory rationalisation (down 43 days) and receivables normalisation (down 34 days); payable days moderated to 69 from 80

Analyst Q&A

• Q. What are the capacity expansion plans across Metoda, Chhapara, Padavala and new sites, including capex and machine hour additions?

  Detailed current capacity: Metoda ~11 lakh hours, Chhapara ~19.5 lakh hours, Padavala ~1.37 lakh hours. Two new world‑class facilities at Chhapara with total capex ₹250 Cr (₹100 Cr building, ₹150 Cr plant & machinery); of the machinery ~₹25 Cr for existing Chhapara, rest for new plants. Post completion, total capacity estimated at 42–43 lakh hours. Some spillover into FY28 due to rain, but teams working to catch up.

• Q. FY28 revenue and margin outlook?

  Historically growing at 35–40% and projecting around that range for FY28 as well; margin similar range of 30% and above.

• Q. Details on aerospace and defense customer trials, margin profile, and when revenue flows?

  First articles undergoing; business case looks good; margins better than current business. Timelines long due to documentation and approvals (Nadcap, validations). Revenue already started showing in ‘others’ segment and expected to grow gradually over 1–3 years.

• Q. Working capital outlook for FY27–28 and geographical mix of order book?

  Aiming to improve net working capital days by another 10–20%. For geography, North America remains ~55–60% of order book; Middle East and Europe growing to offset dependence, targeting 10–20% rebalancing.

• Q. Defense pipeline and conversion timeline?

  Already booked some revenue in Q1 under ‘others’; good pipeline; capacity exists to execute. Orders expected both this year and in FY28.

• Q. Will the ₹250 Cr capex enable a quarterly run‑rate of ₹400 Cr (₹1,600 Cr peak sales)?

  Revenue depends on material mix, but on a per‑hour index, the new capex should enable similar scale as existing facilities (~₹800–900 Cr each). Machines will be added in staggered phases, so roughly similar to the mentioned run‑rate.

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