OBSC Perfection exports rise 173% as automotive share falls

OBSC Perfection Limited increased export revenue 173% year on year to Rs 48.995 crore in H1 FY27, taking exports to 28.9% of revenue from operations while automotive’s share fell to 79.2%. The change coincided with marine revenue reaching Rs 24.435 crore and the United States becoming the largest disclosed export market at Rs 29.682 crore.

How much did OBSC Perfection’s export revenue grow in H1 FY27?

OBSC Perfection’s export revenue grew 173% to Rs 48.995 crore in H1 FY27 from Rs 17.913 crore in H1 FY26. Domestic revenue also increased, rising 70% to Rs 120.415 crore from Rs 70.730 crore, but export growth outpaced the domestic increase and changed the geographic mix.

Exports represented 28.9% of OBSC Perfection’s Rs 169.410 crore revenue from operations in H1 FY27, compared with 19.6% in FY26 and 16.9% in FY24. Domestic business accounted for the remaining 71.1% in H1 FY27, down from 80.4% in FY26, although domestic sales were higher in absolute terms.

The United States was OBSC Perfection’s largest disclosed export market in H1 FY27, contributing Rs 29.682 crore, or 17.5% of total revenue from operations. Italy contributed Rs 6.883 crore, Germany Rs 5.571 crore and Slovakia Rs 3.189 crore; the presentation places USA and Canada together at 17.7% of revenue, Europe at 10.8% and South America at 0.3%.

Why did automotive’s revenue share fall below 80%?

Automotive’s share fell to 79.2% in H1 FY27 because marine revenue expanded sharply while defense maintained a contribution above 6%. Automotive revenue itself was Rs 134.220 crore, but its share was down from 82.4% in H1 FY26 and 85.6% in FY26.

Marine revenue reached Rs 24.435 crore in H1 FY27, equal to 14.4% of operations revenue, compared with Rs 13.811 crore for the whole of FY26, when its share was 6.3%. Defense contributed Rs 10.581 crore, or 6.2%, in H1 FY27, while other industries generated Rs 17.4 lakh, or 0.1%.

Non-automotive revenue totalled Rs 35.190 crore in H1 FY27, more than double Rs 15.645 crore in H1 FY26. OBSC Perfection lists marine cables and steering systems, defense ammunition and fuses, medical implants, and renewable applications among its products, but does not separately disclose H1 FY27 revenue from aerospace, medical or renewable businesses.

What does OBSC Perfection’s order book show about diversification?

OBSC Perfection’s order book was above Rs 1,200 crore as of 30 September 2026, of which exports accounted for Rs 666 crore, or 55%, and domestic orders accounted for Rs 534 crore, or 45%. The company disclosed an average order-book life of five to six years and said October 2026 order wins were subsequent events.

The order book remains more automotive weighted than recognised H1 FY27 revenue: automotive represented Rs 989 crore, or 82%, including Rs 530 crore of non-electric-vehicle orders and Rs 459 crore of electric-vehicle orders. Non-automotive orders were Rs 211 crore, or 18%, comprising Rs 113 crore in defense, Rs 63 crore in marine and Rs 35 crore in other sectors.

Management said the aerospace division received AS 9100D certification, recommended by TÜV India on 7 September 2026, and had started customer discussions. It also disclosed an Rs 8.9 crore Elbit fuze order in October 2026, prototype orders for MK-48 fins and 155 mm shells, and three of seven defense public-sector undertakings onboarded; the presentation does not forecast revenue from these developments.

Which capacity additions could support the changing sales mix?

OBSC Perfection installed stamping capacity in H1 FY27 and began generating revenue from the operation in the same half year. The acquisition included more than 30 pneumatic presses rated from 50 to 500 tonnes, had 13% utilisation, and provided recurring business of about Rs 2 crore per month, according to management.

Combined hot- and cold-forging capacity was 12,000 tonnes per annum, with about 35% annualised utilisation in H1 FY27. Machining capacity increased to 757.2 lakh units per annum from 451.5 lakh units in FY26, while annualised utilisation declined to 71.9% from 85.0%; investment-casting capacity remained 900 tonnes per annum, with utilisation at 73.3% versus 77.8% in FY26.

OBSC Perfection had acquired about 11.8 acres in Maharashtra and Gujarat, including 2.4 acres at Supa in Q1 FY27. Ground-breaking for the Supa mega facility is planned in H2, while Sanand construction had reached phase two; management says the projects are intended to consolidate rented facilities and provide about five times additional space.

How has export growth affected OBSC Perfection’s working capital?

OBSC Perfection’s net trade working capital rose 69% to Rs 104.934 crore at 30 September 2026 from Rs 62.178 crore at 31 March 2026. Trade receivables increased 40% to Rs 92.422 crore and inventories rose 27% to Rs 59.768 crore, while trade payables declined 8% to Rs 47.256 crore.

Management attributed procurement and inventory decisions partly to geopolitical uncertainty affecting shipping availability, transit times and freight costs. It also said Q2 supplier advances were raised to secure critical raw materials for certain export projects and manage near-term commodity-price volatility; export customers represented about 45% of debtors against exports’ approximately 29% share of revenue.

Debtor days improved to 100 in H1 FY27 from 110 in FY26, and inventory days fell to 91 from 110. Payable days, however, declined to 72 from 119, which outweighed those improvements and lifted the cash conversion cycle by 18 days to 119; management said collection initiatives had been under way for the preceding six to nine months.

Conclusion

OBSC Perfection’s H1 FY27 results show a material broadening of its revenue mix, led by Rs 48.995 crore of exports and Rs 24.435 crore of marine revenue. Automotive remained the largest business at Rs 134.220 crore and accounted for 82% of the order book, so the reported diversification occurred alongside continued automotive scale rather than replacing it.

The next disclosed milestones are H2 ground-breaking at Supa, the ramp-up of stamping from 13% utilisation and forging from about 35% utilisation, and conversion of the Rs 666 crore export order book. Working-capital execution also remains relevant after the cash conversion cycle reached 119 days at 30 September 2026.