Omnitech Engineering Q4 FY26 and FY26: Scale-up year driven by Energy orders and capacity build

Omnitech Engineering closed FY26 with a sharp step-up in scale. On a consolidated basis, revenue from operations rose to INR 511.3 crore, up 49.1% year-on-year. EBITDA increased to INR 171.1 crore, up 45.4%, while profit after tax reached INR 79.3 crore, up 80.9%. The year was framed by management as a milestone in execution led growth, supported by expanding manufacturing capability and a sharply higher order book.

For Q4 FY26, revenue came in at INR 148.7 crore, a 38.5% year-on-year rise. EBITDA was INR 49.7 crore, up 15.9%, while PAT grew 43.4% to INR 29.3 crore. The company’s Q4 EBITDA margin declined to 33.5% from 39.9% in Q4 FY25, which management attributed to upfront costs incurred in late Q3 and Q4 for the next phase of growth.

What drove FY26: end markets and geography

The business remained anchored in Energy, which accounted for 52.7% of FY26 revenue. Motion Control and Automation contributed 25.0%, Industrial Equipment System 15.9%, and Others 6.4%.

Geographically, Omnitech remained export led. North America formed 53.2% of FY26 revenues, followed by India at 24.6%, Asia at 18.6%, and Europe and UK at 3.6%. Management reiterated that about 75% of revenue was from outside India for the fiscal year ended March 31, 2026.

Order book: the visibility lever

The clearest signal management leaned on was the order book. As of May 25, 2026, the company reported an order book of more than INR 30,330 million (about INR 3,033 crore). The order book mix was dominated by Energy at 73.7%, with Motion Control and Automation at 13.7% and Industrial Equipment System at 12.6%.

Management also highlighted that the order book includes a multi-year order received from Weatherford with total order value of over US$100 million. In the investor presentation and the call, they described these as long program orders that ramp up over multiple years, rather than being executed immediately.

Capacity, certifications, and the push into aerospace and defence

Omnitech’s strategy for FY27 is built around three concurrent initiatives: commissioning a new manufacturing facility in Hyderabad, expanding operations at a proposed new facility at Chhapra in Rajkot, and implementing solar roofing at the existing Chhapra plant.

On the call, management clarified the Hyderabad facility is a leased property, positioned as a step toward being closer to certain customers, particularly on the defence side. For Rajkot, they reiterated that capacity is planned to support FY27 and early FY28, with new capacity expected to start ramping up after Q1.

A second strategic track is aerospace. The company stated its Metoda and Chhapra plants have been approved for aerospace under AS9100:2015. NADCAP certification is in progress covering surface treatment, non-destructive testing, and welding. It also disclosed receipt of four first-article development orders, indicating early traction in defence and aerospace. Management cautioned that aerospace programs have long qualification cycles, making near-term revenue estimates difficult.

Balance sheet: leverage down, working capital up

The company reported net debt to equity improving to 0.34 times in FY26 from 1.60 times in FY25. Management linked this to stronger cash generation and a strengthened balance sheet post IPO.

At the same time, working capital remained heavy. Net working capital days were disclosed at 294 days in FY26. Management attributed this to inventory build during the ramp-up of new programs due to MOQ commitments with material suppliers, and to receivables influenced by a strong Q4 billing concentration. Management said payables improved during the year, and it expects working capital to be optimised by the end of the current financial year through inventory rationalisation, normalisation of receivable cycles, and disciplined payable optimisation.

What management guided for FY27

Management did not provide a detailed numeric revenue or margin range beyond directional guidance, but it repeatedly referenced its historical performance. On the call, the CFO stated that growth in FY27 is expected to be similar to historical growth, which the company described as around 30% to 35% over the last four to five years. On margins, management indicated margins should be similar to historical levels, while acknowledging Q4 margin softness due to growth investments.

Takeaways

FY26 showcased Omnitech’s ability to scale revenue rapidly while keeping profitability healthy at a full-year level. The key swing factor for the next phase will be execution of a very large disclosed order book, especially in Energy, alongside planned capacity additions.

The company is also laying early groundwork in aerospace and defence through certifications and development orders. However, the documents make it clear that this vertical will require time, process readiness, and certifications such as NADCAP.

For investors tracking the story, three measurable items stand out from the disclosures: conversion of the large multi-year order book into quarterly revenue, improvement in working capital intensity, and the pace at which new capacity comes on stream in FY27.