Highlights
| Issue Size – 25,682,818 shares | Issue Open/Close – 25 Feb / 27 Feb, 2026 |
| Price Band (Rs.) 216–227 | Issue Size (Rs.) ~ 5,830 mn |
| Face Value (Rs) – 5 | Lot Size (shares) – 66 |
Omnitech Engineering Limited (OTEL), incorporated in 2006, is one of the key manufacturers of high-precision engineered components and assemblies, supplying global customers across industries such as energy, motion control & automation, industrial equipment systems, metal forming, and other diversified industrial applications.
OTEL manufactures highly engineered precision-machined components and assemblies that are majorly utilized towards safety critical applications, with a wide range of components ranging from weight of 0.003 kg to 503.33 kg, diameter of 1.27 cm to 1 mand length of 0.2 cm to 10 m, helping them cater to the diverse requirements of their marquee customer base.
Company’s products find applications in industries such as Energy, Motion Control and Automation, Industrial Equipment Systems and others, with energy accounting for 50.5 pct, motion control and automation for 26.8 pct, industrial equipment systems for 18.5 pct and others for 4.1 pct of company’s total revenue.
Out of the total proceeds from the offer, ~Rs. 500 mn would go towards certain debt repayments, ~Rs. 2,335 mn would go towards setting up new projects and ~Rs. 187 mn would go towards capex and ~Rs. 1,104 mn would go towards general corporate purposes. While ~Rs. 1,650 mn would go towards existing selling shareholders of the company.
Key Highlights
- In CY24, the global market for precision engineered goods stood at USD 269.1 bn, exhibiting a CAGR of 6.4 pct during the period of CY18 to CY24. Going forward, by CY28, the market is expected to reach a value of USD 395.4 bn, representing a CAGR of 9.9 pct during the period of CY25 to CY28.
- Company’s orderbook stands at Rs. 17.7 bn as of H1FY26 against Rs. 2.8 bn as on end of FY25, with Energy sector comprising around 74 pct, Industrial Equipment Systems comprising around 21 pct and Motion Control and Automation comprising shy of 4 pct of the company’s orderbook as of H1FY26.
- Company’s product offering adhere to quality standards and specifications as specified by its customers, and they believe that maintaining these high standards along with timely delivery has been instrumental in sustaining long term relationship with its customers, which is reflected in repeat order received from their customers.
- Repeat order for the last three fiscals as a pct of revenue stood at around 82 pct, 95 pct and 80 pct, and for period ending as at H1FY26 it stood at around 97 pct. With company’s 79 pct of revenue coming from outside India and 21 pct of revenue generated from within India for H1FY26.
- The company’s core strategies include (i) Capitalize on growth in the precision engineering sector and deepen its presence across key end-user industries. (ii) Expand its geographical reach (iii) Augmenting its capacity in line with its expected business growth (iv) Inorganic acquisition for improving its manufacturing capabilities, deepening its presence in its end-user industries and targeting customers in existing and new geographies (v) Further improve its financial profile.
- Sales of the company has grown by 39.1 pct CAGR in over FY23-25 and EBITDA and Profit grew by 36.2 pct CAGR and 16.5 pct CAGR over same period. During FY25 the sales of the company jumped by 92.5 pct YoY to Rs. 3,429 mn. While EBITDA of the company grew by 81.2 pct YoY to Rs. 1,176 mn YoY in FY25. During FY25, the company reported a profit of Rs. 439 mn, which grew 132 pct YoY.
Key Risk
- Company generated around 69 pct,61 pct, 48 pct and 56 pct of the total revenue from its top 10 customers in FY23, FY24, FY25 and H1FY26, respectively. The loss of such customers or a significant reduction in its revenue from such customers will have a material adverse impact on business.
- A significant proportion of the company’s revenue and materials purchased are denominated in foreign currencies. As a result, adverse foreign currency exchange rate fluctuations could adversely impact its business, results of operation, and financial condition.
Financial Performance
| (In Rs. million, unless otherwise stated) | FY23 | FY24 | FY25 | H1FY26 |
| Revenue from Operations | 1773.3 | 1781.8 | 3429.1 | 2281.7 |
| EBITDA | 634.6 | 649.4 | 1176.5 | 700.8 |
| EBITDA Margin % | 35.8% | 36.4% | 34.3% | 30.7% |
| Profit | 322.9 | 189.1 | 438.7 | 277.8 |
| Profit Margin % | 18.2% | 10.6% | 12.8% | 12.2% |
| ROE % | 53.9% | 23.8% | 21.6% | 12.1% |
| ROCE % | 35.9% | 14.8% | 16.1% | 9.2% |
Peer Comparison
| Peer Comparison | Omnitech Engineering | Azad Engineering | PTC Industries | MTAR Tech | Dynamatic Technologies |
| Sales (Mn) | 3,429 | 4,574 | 3,081 | 6,760 | 14,038 |
| EBITDA (Mn) | 1,176 | 1,613 | 753 | 1,208 | 1,583 |
| EBITDA Margin % | 34.3% | 35.3% | 24.4% | 17.9% | 11.3% |
| Profit (Mn) | 439 | 865 | 610 | 529 | 430 |
| Profit Margin % | 12.8% | 18.9% | 19.8% | 7.8% | 3.1% |
| ROE % | 21.6% | 6.3% | 4.4% | 7.3% | 6.0% |
| ROCE % | 16.1% | 8.7% | 6.1% | 10.4% | 9.6% |
Valuation
Omnitech Engineering Limited is a key manufacturer of high-precision engineered components and assemblies, serving global customers across diverse industries. At the upper end of the price of Rs. 227, the issue quotes a PE of 50x on FY26 annualized earnings. The issue looks fully priced. One can avoid this issue.
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