OBSC Perfection posts record H1 FY27 profit, up 107%

OBSC Perfection Limited reported its highest-ever half-year profit after tax of Rs 21.83 crore in H1 FY27, up 107% year on year, as revenue from operations rose 91% to Rs 169.41 crore. Operating EBITDA reached Rs 29.41 crore, while PAT margin increased to 12.6% from 11.6% despite a decline in operating EBITDA margin.

How did OBSC Perfection perform in H1 FY27?

OBSC Perfection delivered record half-year revenue, operating EBITDA and profit in H1 FY27, with revenue from operations increasing 91% to Rs 169.41 crore from Rs 88.64 crore in H1 FY26. The presentation describes the period as the company’s strongest half-year, with Q2 FY27 continuing the momentum reported in Q1 FY27.

Operating EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 84% to Rs 29.41 crore from Rs 15.96 crore. Profit after tax, or PAT, rose 107% to Rs 21.83 crore from Rs 10.51 crore, outpacing both revenue and operating EBITDA growth.

PAT growth was 16 percentage points above revenue growth, while operating EBITDA growth was 7 percentage points below revenue growth. The reported figures show higher profit growth despite lower operating-margin percentage, but the presentation does not disclose the factors below operating EBITDA that explain this difference.

Why did OBSC Perfection’s PAT margin rise while EBITDA margin fell?

OBSC Perfection’s PAT margin rose to 12.6% in H1 FY27 from 11.6% in H1 FY26, while operating EBITDA margin declined to 17.4% from 18.0%. This was a 100-basis-point increase in PAT margin and a 60-basis-point decrease in operating EBITDA margin; one basis point is one-hundredth of a percentage point.

The same contrast appeared in Q2 FY27. Q2 PAT increased 125.5% year on year to Rs 12.354 crore from Rs 5.477 crore, and PAT margin rose to 13.1% from 11.5%. Q2 operating EBITDA rose 83.6% to Rs 15.569 crore, but its margin fell to 16.9% from 18.1%.

Quarter on quarter, Q2 FY27 total income was Rs 94.031 crore, 19.5% above Rs 78.715 crore in Q1 FY27. Operating EBITDA grew 12.4% from Rs 13.844 crore in Q1 FY27, while PAT grew 30.4% from Rs 9.474 crore; operating EBITDA margin fell by 100 basis points and PAT margin rose by 110 basis points.

Which revenue segments drove OBSC Perfection’s H1 growth?

OBSC Perfection’s exports grew faster than domestic business in H1 FY27, with export revenue rising 173% to Rs 48.995 crore from Rs 17.913 crore. Domestic revenue increased 70% to Rs 120.415 crore from Rs 70.730 crore, remaining the larger revenue base.

Exports accounted for about 29% of H1 FY27 revenue, according to management. By industry, automotive represented 79.2% of revenue, down from 82.4% in H1 FY26, while marine rose to 14.4% from 6.6%; defence was 6.3%, compared with 6.2% a year earlier.

Non-automotive revenue more than doubled to Rs 35.19 crore in H1 FY27 from Rs 15.645 crore in H1 FY26. The company also installed stamping capacity and started generating revenue from it during H1 FY27, disclosing more than 30 pneumatic presses of 50 to 500 tonnes and stated utilisation of 13%.

What changed in OBSC Perfection’s working capital and balance sheet?

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.

The cash conversion cycle increased by 18 days to 119 days in H1 FY27 from 101 days in FY26. Debtor days declined by 10 days to 100 and inventory days fell by 19 days to 91, but payable days decreased by 47 days to 72, which management said outweighed the improvements in collections and inventory efficiency.

Management said it deployed working capital over the past 12 to 18 months to support export-led production continuity and fulfil customer commitments amid uncertainty in shipping availability, transit times and freight costs. It also said export customers represented about 45% of debtors, compared with exports contributing about 29% of revenue.

The company completed a preferential issue of Rs 86.52 crore in September 2026, reported net worth of Rs 271.93 crore and disclosed debt-to-equity of 0.26 times. Capital expenditure was Rs 20.37 crore, alongside the stated facility expansion plans in Maharashtra and Gujarat.

What expansion and order plans has OBSC Perfection disclosed?

OBSC Perfection has acquired 10.8 acres at Supa, Maharashtra, including 2.4 acres added in Q1 FY27, and management plans a ground-breaking for its mega facility in H2. The proposed facility is intended to consolidate rented sites, bring processes in-house and provide about five times additional space for expansion.

At GIDC Sanand in Gujarat, construction had reached phase two and the company had acquired about one acre. OBSC Perfection also disclosed combined cold- and hot-forging capacity of 12,000 tonnes a year at Faridabad Unit 6 and Pune Unit 5, with annualised utilisation of about 35% in H1 FY27.

The company disclosed AS 9100D certification for its aerospace division, recommended by TÜV India on 7 September 2026, and said customer discussions had started. Its stated wins include a five-year DaVinci DCx order worth Rs 31.4 crore received in September 2026 and an Elbit fuze order worth Rs 8.9 crore in October 2026.

Conclusion

OBSC Perfection’s H1 FY27 results combined 91% revenue growth with a 107% increase in PAT, while exports rose 173% and non-automotive revenue more than doubled. The reported mix changed as marine’s contribution rose to 14.4%, although automotive remained the largest segment at 79.2% of revenue.

The next disclosed developments are the planned H2 ground-breaking at Supa, further phase-two work at Sanand and execution of the Rs 31.4 crore, five-year DaVinci DCx order. Management’s collection initiatives and the 119-day cash conversion cycle also remain matters to watch after net trade working capital reached Rs 104.934 crore at 30 September 2026.