Omnitech Engg. Q2 FY27 Results (NSE: OMNI)
Signal: Growth decelerated
The read
The trajectory remains high-growth but less clean than the headline: revenue increased 37.3% YoY to ₹1,755.72 million, yet materials consumed grew 50.7% and gross margin contracted 342bps to 61.6%. PAT increased 32.6% to ₹302.76 million, with the benefit materially aided by depreciation falling 38.4% after the accounting-estimate change; the next proof point is whether margin recovers while the expansion capex base comes online.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹175.57 Cr | +37.3% | +3.8% |
| Net profit | ₹30.28 Cr | +32.6% | |
| EPS | ₹2.45 | +12.9% |
P&L walk
Standalone revenue reached ₹1,755.72 million, +37.3% YoY and +3.8% QoQ, but materials consumed rose +50.7% YoY versus revenue growth, compressing gross margin to 61.6% from 65.0%; PAT still rose +32.6% to ₹302.76 million, helped by sharply lower depreciation after the accounting-estimate change.
Key positives
- Revenue from operations was ₹1,755.72 million, up 37.3% YoY, maintaining the company’s strong expansion trajectory.
- H1 operating cash flow increased to ₹962.58 million from ₹110.97 million, despite ₹1,057.75 million of capital expenditure and working-capital investment.
- Property, plant and equipment increased by ₹913.56 million and CWIP by ₹21.12 million, supporting the stated facility and equipment expansion programme.
- PAT rose 32.6% YoY to ₹302.76 million even with gross-margin compression, while employee-cost intensity improved to 14.2% of revenue from 14.8%.
Key concerns
- Gross margin fell 342bps YoY to 61.6% as materials consumed increased to 38.4% of revenue from 35.0%; revenue grew but the company absorbed part of the cost pressure.
- EPS growth of 12.9% materially lagged PAT growth of 32.6% after the post-IPO increase in the equity base.
- Net debt increased by ₹382.51 million to ₹2,741.41 million by September 30, 2026 as the company invested ₹1,057.75 million in H1 capex.
- The quarterly PAT benefit includes ₹14.44 million of lower depreciation versus what would have been charged under the former written-down-value method.
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