/** Title: Omnitech Q1 FY27: Order Book Visibility Meets a Busy Capex Calendar */

Omnitech Q1 FY27: Order Book Visibility Meets a Busy Capex Calendar

Omnitech Engineering Limited opened FY27 with a sharp jump in scale and profitability. On a consolidated basis for the quarter ended June 30, 2026, revenue from operations rose to INR 1,666.6 million (INR 166.7 crore), up 61.5% year on year. EBITDA came in at INR 506.2 million (INR 50.6 crore), up 90.8%, with EBITDA margin improving to 30.4% from 25.7% a year earlier. Profit after tax increased to INR 297.3 million (INR 29.7 crore), up 468.7%.

Sequentially, growth moderated, which is typical after a strong finish to the previous year. Compared with Q4 FY26, revenue increased 12.1% and EBITDA rose 1.7%. Margins eased quarter on quarter, with EBITDA margin at 30.4% versus 33.5% in Q4 FY26.

Management and the presentation also flagged an important accounting change. Profit before tax for Q1 FY27 includes the impact of shifting the depreciation method from WDV to SLM effective this quarter. In the concall, management confirmed depreciation should now be on the straight-line method going forward.

What drove the quarter: industry and geography mix

The company’s Q1 FY27 revenue mix shows a business still anchored in energy, but with meaningful contributions from other industrial segments.

By end-use industry (based on INR 1,578.6 million shown for the split), energy contributed 49.4% of revenue, motion control and automation 24.2%, industrial equipment systems 19.5%, and others 6.9%. Management noted that the mix is gradually broadening across industries while retaining a strong position in energy.

The export profile remains central to the story. By geography, North America contributed 52.5%, Asia 27.0%, India 17.5%, and Europe and UK 3.0%. Management stated that about 78% of revenue was generated from exports during the quarter.

Another detail in the presentation clarifies the revenue base: total revenue from operations of INR 1,666.6 million includes scrap of INR 64 million and government export incentives of INR 24 million.

Financial summary (Consolidated)

Note: PBT for Q1 FY27 includes impact of depreciation method change from WDV to SLM.

Order book visibility is the headline, but conversion is the job

The standout operational metric is the order book. As of July 31, 2026, Omnitech reported an order book of INR 30,550 million (INR 3,055 crore). Management described the opportunity pipeline as robust and the order book as long-term in nature, with dispatches carried out against customer schedules.

The presentation also highlighted that the order book includes a multi-year order from Weatherford with total order value exceeding USD 100 million.

Industry concentration is visible inside that order book. The presentation states that as of July 31, 2026, the order book split was energy at 77.48%, motion control and automation at 12.55%, and industrial equipment systems at 13.14%.

Management also provided a useful qualitative timeline for execution. In the concall, they indicated that within the INR 3,000+ crore order book, about INR 2,000 crore relates to two large orders with timelines of roughly 4 to 5 years, while roughly INR 1,000 crore is a mix of shorter-cycle orders with fulfilment periods of about 6 to 18 months.

The key implication is that visibility is high, but quarterly conversion will depend on delivery schedules, manufacturing execution, and logistics.

Capacity expansion and capex: building for the next phase

Capacity is the natural constraint in precision engineering, and management spent significant time on this topic.

As of June 30, 2026, Omnitech’s annualized installed capacity was about 31.98 lakh machining hours, up 20.7% from FY26 capacity of 26.49 lakh hours. Management broke down the current capacity across plants as follows: Metoda at around 11.05 lakh machine hours, Chhapara at around 19.56 lakh, and Padavala at around 1.37 lakh.

To support order book conversion, management outlined a capex program of about INR 250 crore. They described this as around INR 100 crore for building and INR 150 crore for plant and machinery. Of the machinery capex, about INR 25 crore is planned for the existing Chhapara plant and the remainder is for the new Chhapara facilities.

After execution of the two new facilities, management expects capacity to reach around 42 to 43 lakh machine hours. They also clarified that the building and facility design provides headroom to add more machine capacity in later tranches.

On timelines, management indicated that most of the INR 250 crore capex is planned for FY27, with some spillover into FY28 due to a delay of around 1 to 1.5 months because of the rainy season. They stated that the two new plants at Chhapara are expected to start in FY28.

Working capital and balance sheet: improvement, but still heavy

Working capital was one of the most important operational improvements highlighted in the concall.

Net working capital days improved to 233 days as of June 30, 2026, from 294 days as of March 31, 2026. Management attributed this to inventory days reducing to 182 from 225, and receivable days reducing to 119 from 153, with payable days moderating to 69 from 80.

Despite the improvement, the working capital cycle remains long. Management said they are working toward historical levels below 200 to 220 days, but also acknowledged that growth and first-article development can require minimum order quantities and initial stocking.

On leverage, the presentation shows net debt to equity at 0.41 in Q1 FY27 versus 0.34 in FY26. Management also noted they repaid INR 50 crore of long-term debt from IPO proceeds and discussed restructuring of NBFC loans to reduce interest costs.

Return metrics improved in the presentation: Q1 FY27 annualized ROCE was 17.8% versus 13.7% in FY26, and annualized ROE was 16.8% versus 11.7%.

Aerospace and defense: certifications in place, ramp-up is gradual

Omnitech’s push into aerospace and defense is backed by measurable milestones in certifications, even though revenue contribution is still early.

The presentation states that existing plants at Metoda and Chhapara have been approved for aerospace under AS9100:2016, and that NADCAP certification is in progress covering surface treatment, NDT, and welding. It also notes that first-article development orders from the defense and aerospace segment are in progress.

In the concall, management described aerospace and defense qualification as time-consuming but said they are on track on FA approvals and related process approvals. They also stated that margins in aerospace and defense should be better than the current mix. However, they were clear that revenue will build over time, and indicated a 1 to 3 year window for meaningful ramp-up depending on approvals and orders.

Management commentary: growth and margin expectations

Management’s forward commentary was measured and anchored in what the company has historically delivered. In response to a question on FY28, management cited a historical growth range of around 35% to 40% and said they are projecting growth around that range. They also indicated margins should remain in a similar range, with EBITDA margin expected to be around 30% and above.

On gross margin expectations, management indicated an anticipated band of around 68% to 71%.

They also reiterated raw material price volatility is generally managed through pass-through mechanisms with major OEM customers, and stated that forex and similar clauses are also part of commercial structures, though they noted pass-through can take time through quarterly business reviews.

Key takeaways

Omnitech’s Q1 FY27 results combine three elements that investors typically look for in a scaling precision engineering company: rapid revenue growth, strong profitability, and a large order book that provides multi-year visibility.

At the same time, the next phase will be defined by execution. The INR 250 crore capex program and the planned capacity jump toward 42 to 43 lakh machine hours need to be delivered on schedule. Working capital has improved meaningfully, but remains structurally high and will continue to matter as the company ramps output.

If Omnitech can convert its large order book while keeping margins around the 30% EBITDA level and steadily improving working capital, the company’s stated roadmap of sustainable growth and diversification into aerospace and defense will have clearer evidence in the coming quarters.