Omnitech Engineering Q4 FY26 Earnings Call Transcript Released

Omnitech Engineering Limited has released the transcript of its conference call with analysts and investors held on May 27, 2026. The call discussed the company's audited financial results for the quarter and financial year ended March 31, 2026.

During the call, the management highlighted strong financial performance for FY26, with revenue growing 49.1% to ₹511.3 crore, EBITDA increasing by 45.4% to ₹171.1 crore, and Profit Before Tax nearly doubling by 92% to ₹107.8 crore. Profit After Tax rose by 80.9% to ₹79.3 crore, with the PAT margin improving to 15.5% from 12.8% in the previous year. For Q4 FY26, revenue grew 38.5% to ₹148.7 crore, EBITDA increased by 15.9% to ₹49.7 crore, and PAT rose by 43.4% to ₹29.3 crore, with a margin of 19.7%.

The company's balance sheet remains robust, with the net debt-to-equity ratio improving significantly to 0.34x in FY26 from 1.6x in FY25. Return on Capital Employed (ROCE) was 13.7%, and Return on Equity (ROE) stood at 11.7%. The management attributed the lower ROE and ROCE primarily to a sharp increase in the equity base due to IPO proceeds, emphasizing these as strategic investments for capacity expansion. Working capital saw an increase, driven by inventory build-up for new programs and extended receivable days, with plans to optimize through inventory rationalization and normalization of receivable cycles.

Business updates revealed a diversified revenue mix, with Energy contributing 53%, Motion Control and Automation 25%, and Industrial Equipment 16%. Geographically, North America accounted for 53%, India 24%, and Asia 19%. The order book stood at over ₹3,000 crore as of May 25, 2026, including a multi-year order from Weatherford valued at over ₹900 crore. The company is expanding its manufacturing capabilities with a new facility in Hyderabad, expanding operations at Chhapara, and implementing solar roofing at the Chhapara plant. Certifications for Aerospace AS9100 have been achieved, with NADCAP certification in progress, and four FA development orders received in the defense and aerospace segments.

Management expressed confidence in continued growth, targeting 30-35% growth annually, similar to historical performance. They also indicated that margins are expected to revert to historical levels after the temporary impact of increased costs incurred in Q4 FY26 for future growth initiatives. The company is strategically adding value-added products and expanding its customer base across various segments, including aerospace and defense, while ensuring sufficient capacity to execute existing and future orders.