| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹216 to ₹227 | 66 | 25th Feb, 2026 –27th Feb, 2026 | ₹583 Cr |
Omnitech Engineering Ltd
Omnitech Engineering Limited (OEL) manufactures precision-engineered components and assemblies for industrial applications. The company operates a customized manufacturing model, producing components based on client-specific design and technical requirements. It is led by its Founder, Chairman and Managing Director, Udaykumar Arunkumar Parekh, who has over 19 years of experience in the machining industry. OEL serves multiple end-user industries including Energy, Motion Control and Automation, Industrial Equipment Systems, and select applications in automotive, medical, and consumer segments. In the Energy segment, it supplies components used in drilling, exploration, refining, power systems, and renewable energy equipment. In Motion Control and Automation, it produces cylinders, shafts, and related components for robotic and actuator systems. In Industrial Equipment, it manufactures parts used in aerospace ground support, construction, and mining equipment, including pivot pins, drill bits, chain anchors, and wheels. As of September 30, 2025, the company operated three manufacturing facilities in Rajkot, Gujarat (Metoda, Chhapara, and Padavala) with annualized machining capacity of 2,429,856 machine hours and fabrication capacity of 7,200 MTPA. The facilities housed 383 CNC machines, including VMCs and turn-mill centers, and utilized industrial robots and IoT-based monitoring systems. Operations cover design (2D/3D modeling), machining, fabrication, plating, phosphating, welding, assembly, and testing. The facilities are located approximately 300 kilometres from Mundra Port. The company supplies customers in 24 countries. Revenue from exports accounted for 79% of revenue from operations in the H1FY26. It operates a subsidiary, Omnitech Group Inc., and maintains a warehouse in Houston, Texas to support North American operations. The business model remains centered on customized manufacturing, export-led demand, and multi-sector industrial exposure.
Objective of Omnitech Engineering Ltd
The company proposes to utilize net proceeds from the issue towards the following objects:
- Repayment and/or pre-payment, in full or in part, of certain outstanding borrowings availed by the company;
- Setting up of two new manufacturing facilities of the company at Gujrat, India;
- Funding towards capital expenditure requirements for purchase and installation of solar panels on the roof top at, and, purchase of new equipment / machinery for, existing manufacturing facility;
- General corporate purposes.
Rationale To Omnitech Engineering Ltd
Investment Rationale
Revenue visibility backed by large order book and expanding manufacturing capacity
Omnitech’s investment case rests on a sharp increase in confirmed demand supported by parallel capacity build-out. The order book expanded from Rs. 58 crores in FY23 to Rs. 1,765 crores as of September 2025, equivalent to five times the FY25 revenue. Around 74% of this backlog comes from the Energy segment, including a Rs. 1,039 crores commitment from one customer. While customer concentration requires monitoring, such large program-based orders typically indicate deeper integration into OEM supply chains rather than short-term procurement. Revenue growth has followed a similar trajectory, with a 39% CAGR between FY23-25 and 92% YoY growth in FY25. Importantly, capacity expansion has kept pace with demand. Annual machining capacity increased from 0.9 million hours in FY23 to 2.43 million hours currently, and ongoing capex is expected to take it to 3.3 million hours. This expansion reduces the risk of order backlog turning into execution bottlenecks. The business remains export-driven, with 79% of H1FY26 revenue from international markets and nearly 56% from the US. A warehouse in Houston enables localized stocking and faster delivery, supporting a 38% CAGR in US revenue over FY23-25. Facilities located near Mundra Port and within the Rajkot industrial cluster support logistics efficiency. Demand growth and manufacturing scale are expanding together, which strengthens execution visibility.
High-barrier precision business with margin resilience
Omnitech operates in segments where precision, certification, and process control matter more than price alone. The company manufactures components with tolerances as fine as 5 microns and works with specialized materials such as titanium and nickel alloys. Its products are used in oil & gas drilling systems, aerospace, robotics, and heavy industrial equipment applications where reliability is critical. Entry into these supply chains requires long qualification cycles of 8-12 months, including audits and testing. Once approved, supplier replacement is limited. The company holds AS9100 (Aerospace), API monogram rights (Oil & Gas), and IATF 16949 (Automotive) certifications, which are mandatory for many global OEM programs. These approvals restrict the competitive field. EBITDA margins remained above 34% between FY23 and FY25, indicating operating stability during rapid scale-up. While there is contraction in H1FY26 margins to 31%, this is due to capacity ramp up and will eventually normalize. The company is also expanding into higher-value assemblies through fabrication capabilities, which can increase revenue per contract. Planned backward integration into metal forming aims to improve control over raw material processing and reduce dependence on third parties. Internal automation software under development through its Novatro subsidiary is intended to improve workflow efficiency. The overall positioning reflects participation in technically demanding sectors with measurable entry barriers, though performance will depend on mix stability and execution discipline.
Valuation of Omnitech Engineering Ltd
Omnitech Engineering Limited represents a precision engineering business undergoing a structural scale transformation from a smaller supplier to a program-based, export-oriented manufacturer, with financials reflecting both operating strength and balance sheet expansion typical of growth phases. Revenue increased from Rs. 177 crores in FY23 to Rs. 343 crores in FY25, delivering a 39% CAGR, while EBITDA for FY25 stood at Rs. 118 crores with a robust 34% margin despite rapid capacity addition. PAT reached Rs. 44 crores, translating into a 13% net margin, EPS of Rs. 4.26 (weighted average Rs. 3.30), and RoE of 22% following equity expansion. H1FY26 revenue of Rs. 228 crores with EBITDA margin of 31% indicates continued execution with mild normalization during ramp-up, yet margins remain structurally above 30%, supported by 5-micron precision capability and operations in certification-driven, safety-critical segments (AS9100 for Aerospace, API monogram for Oil & Gas, and IATF 16949 for Automotive), where qualification cycles typically range from 8-12 months, reinforcing entry barriers and margin resilience. The most significant valuation anchor is the Rs. 1,765 crores order book as of September 2025, equivalent to five times of FY25 revenue. However, 74% of this backlog is Energy-driven and includes a Rs. 1,039 crores commitment from a single customer, creating meaningful concentration risk alongside strong revenue visibility. The business remains structurally export-led, with ~79% of H1FY26 revenue derived from international markets and over half from the US, supported by a warehouse in Houston that enables localized stocking and closer coordination with North American OEMs. Capacity has expanded from 0.9 million machining hours in FY23 to 2.43 million hours as of September 2025, with a roadmap to reach 3.3 million hours, aligning infrastructure with backlog growth. On the balance sheet, borrowings of Rs. 383 crores, Debt-to-Equity of 1.66x, Net Debt-to-EBITDA of 5.41x, and elevated working capital days of 256 reflect capital intensity, inventory build-up, and funding needs during expansion. Relative valuation versus listed precision engineering peers indicates that while the peer group trades at an average P/E of 188x (Azad Engineering at 118x, Unimech Aerospace at 51x, PTC Industries at 429x, and Dynamic Technologies at 156x). Omnitech Engineering Ltd. at the upper price band of Rs. 227 and EPS of Rs. 4.3 per share implies a P/E of 53x. Given the company’s position within the value added precision business, addressable market size and expanding capacity, we recommend a “SUBSCRIBE” rating to the issue from a medium-to-long-term perspective.
What is the Omnitech Engineering Ltd IPO?
The initial public offer (IPO) of Omnitech Engineering Ltd offers an early investment opportunity in. A stock market investor can buy Omnitech Engineering Ltd IPO shares by applying in IPO before All Omnitech Engineering Ltd shares get listed at the stock exchanges. An investor could invest in Omnitech Engineering Ltd for short term listing gain or a long term.
How to apply for the Omnitech Engineering Ltd IPO through StoxBox?
To apply for the Omnitech Engineering Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Omnitech Engineering Ltd IPO open?
Omnitech Engineering Ltd IPO is opening on 25 Feb Jan 2026. Apply Now
What is the lot size of the Omnitech Engineering Ltd IPO?
The Lot Size of Omnitech Engineering Ltd IPO is 66 equity shares. Login to your account now.
When is the Omnitech Engineering Ltd IPO allotment date?
The allotment Date for Omnitech Engineering Ltd IPO is 2nd Mar 2026. Login to your account now.
When is the Omnitech Engineering Ltd IPO listing date?
The listing Date for Omnitech Engineering Ltd is 5th Mar 2026. Login to your account now
What is the minimum investment required for the Omnitech Engineering Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,982. Login to your account now
What is the maximum investment allowed for Omnitech Engineering Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 1,94,766. Login to your account now
What are the risks associated with investing in the Omnitech Engineering Ltd IPO?
- Top 10 customers contributed 56% of revenue in H1FY26, indicating high client dependence. Any cancellation, deferral, or reduction from this anchor client could materially impact revenue visibility and growth.
- Inventory levels reached 283 days in FY25 due to long lead times and specialized inputs. The company reported negative operating cash flow of Rs. 69 crores in FY25. Sustained expansion may require additional debt or equity, increasing financial risk if funding tightens.
- Exports formed 79% of H1FY26 revenue, with the US contributing 56%. Recent elevated US tariffs and continued trade policy uncertainty increase pricing and competitiveness risks.
When will the Omnitech Engineering Ltd IPO shares be credited to my Demat account?
The Omnitech Engineering Ltd be credited to the account on allotment date which is 2nd Mar 2026. Login to your account now
Where can I find the Omnitech Engineering Ltd IPO prospectus?
The prospectus of Omnitech Engineering Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
