Omnitech Engineering IPO

The company had a really strong year, with revenue up 92.45% to ₹342.91 crore. What’s nice is it didn’t grow by burning profits; its operating profit margin (profit from core business before interest and taxes) stayed high at 34.31%, which shows it can scale up and still stay profitable.

Its unexecuted order book (work already booked but not yet delivered) rose to ₹1,764.78 crore, as of September 30, 2025, which is more than 5 times its FY25 revenue. This gives pretty clear visibility into future revenue and is a good sign that customers are actively buying its precision-engineered products.

It’s not just an India story, 74.95% of last year’s revenue came from outside India. The company supplies 256 customers across 24 countries, and the US warehouse helps it serve overseas clients more smoothly, especially in the American market.

Customer stickiness looks solid. In the last financial year, 101 repeat customers contributed 79.78% of total revenue. Plus, the average customer relationship is about 3.80 years, which usually means repeat orders and a more predictable flow of business.

It runs three facilities spread across 80,802.68 square meters, with an installed capacity of 24 lakh (2,429,856) machine hours. That scale matters because it helps them handle a wide range of custom jobs - anything from a tiny 0.003 kg part to a heavy 503.33 kg component - without getting overwhelmed operationally.

Interestingly, it’s not only about metal and machines. It has a subsidiary with 15 employees building specialised software to automate manufacturing operations, and it even wants to license that software to other companies, so potentially a second revenue stream over time. They’re also using industrial robots across machining lines instead of relying purely on manual work. The practical benefit is speed plus consistency, complex parts get produced the same way every time, with fewer human errors.

The company depends a lot on a small set of buyers; its top 10 customers made up 47.87% of revenue last year. And here’s the bigger single-point risk: one customer alone accounts for 58.5% (₹1,038.87 crore) of the current order book. If that customer slows down, delays, or renegotiates, it can quickly show up in sales and cash flow.

As of September 30, 2025, total debt was ₹382.91 crore, and the debt-to-equity ratio is 1.66 times (meaning roughly ₹1.66 of debt for every ₹1 of shareholder equity). With that kind of leverage (heavy use of borrowing), a bigger chunk of cash has to go into interest and repayments, which reduces financial flexibility, especially in weaker cycles.

The company needs a lot of money tied up in working capital (cash stuck in inventory and unpaid customer bills, net of what you owe suppliers), and its working capital requirement jumped to ₹265.58 crore in FY25 from ₹96 crore a year ago. Its working capital cycle is also very long at 283 days, which means it can take that long to turn cash spent on materials and production back into cash collected from customers. A long cycle like this can make growth feel “cash-hungry”, even when profits look good on paper.

North America contributed 59.24% of revenue last year, so the company is meaningfully exposed to that region. If the US sees higher import tariffs, tougher trade rules, or even a demand slowdown, it can hurt pricing power and reduce order inflows. In simple words, too much dependence on one geography can turn external policy or economic changes into a direct hit on sales.

In the previous financial year, the business used up ₹68.98 crore of cash from operations (cash generated or consumed by the core day-to-day business). Negative operating cash flow basically means the company is spending more cash running the business than it’s bringing in from customers during that period. If this stays negative for long, the company may need extra funding (more debt or fresh capital) just to comfortably run daily operations.

All existing and upcoming plants are in one city, Rajkot, which creates a location risk. If something local goes wrong (like the severe flooding mentioned for the last financial year), it can disrupt the whole manufacturing setup at once. That kind of “all eggs in one basket” operational risk is worth tracking, especially for a company with a large order backlog and tight delivery schedules.