Omnitech Engineering Limited Earnings Call Transcript, Nov 5, 2026

Ladies and gentlemen, good day and welcome to Omnitech Engineering Limited Q2 H1 FY27 Earnings Conference Call hosted by Equirus Securities Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Vaibhav Shah from Equirus Securities. Thank you, and over to you, sir.

Vaibhav Shah:

Yes. Hi everyone. On behalf of Equirus Securities, I welcome you to the second quarter and H1 FY27 earnings conference call of Omnitech Engineering Limited. We are pleased to have with us management represented by Mr. Paras Parekh, Chief Financial Officer and Whole-Time Director, and Mr. Bhavin Acharya, Chief Revenue Officer. I will now hand over the call to the management team for their opening remarks, which will be followed by Q & A Session.

Paras Parekh:

Yes, thank you, Mr. Vaibhav. Good afternoon everyone and a warm welcome to all of you. Thank you for joining Omnitech Engineering Limited earning calls for the second quarter and half-year ended September 30th, 2026. I am Paras Parekh, Whole-time Director and CFO of Omnitech Engineering Limited. Along with me we have Mr. Bhavin Acharya, our Chief Revenue Officer. The first half of FY27 reflects continued momentum in Omnitech's growth journey. Revenue from H1 FY27 increased by 50% year-on-year, while the second quarter also delivered healthy growth. More importantly, this progress continues to be supported by a strong order book, long-term customer relationship, and increasing engagement across our established as well as emerging industry segments. The expansion at our Chhapara, Rajkot campus is progressing well and is intended to enhance manufacturing capacities strengthen our integrated engineering capabilities as demand grows across key industries, and that can support the business over the medium to long term. Looking ahead, we remain positive about the business outlook and the continuation of Omnitech's growth journey. Our order book, customer engagement, and opportunity pipeline provide a strong platform for our future growth. While our approach will remain disciplined in execution, capacity creation and capital development. We will continue to pursue opportunities across diversified industries while maintaining our focus on operational excellence and long-term value creation. I will now talk about the financials of the company. The key performance highlights for Q2 FY27 on a consolidated basis. Revenue grew by 40.5% year-on-year to INR175.56 crores.

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Omnitech Engineering Limited November 05, 2026 EBITDA increased by 17.7% to INR51.25 crores. Profit before tax rose sharply by 37.8% to INR40.33 crores. Profit after tax increased by 35.5% to INR30.57 crores. For H1 FY27 performance, revenue grew by 50% year-on-year to INR42.22 crores. EBITDA increased by 45.4% to INR101.87 crores. Profit before tax rose sharply by 117.3% to INR80.01 crores. Profit after tax increased by 117% from INR60.29 crores. If we see some of the key ratios, net debt-to-equity ratio stood to 0.37 times compared with 0.34 times in FY26. So we remain focused on maintaining a prudent capital structure and continue to actively manage our borrowing mix. Return on equity on annualized basis is 16.4% compared to 11.7% for FY26. Return on capital employed annualized base improved to 16.7% compared with 13.7% for FY26. For the working capital performance, net working capital days improved to 259 days from 294 days at the end of financial 2026, which reflects continued focus on working capital discipline as a business scale. The improvement was driven by the following, 24 days in inventory days as compared to FY26, and 13 days improved in receivable days as compared to FY26. If we see our installed capacity, we operate 3 manufacturing facilities and our annualized machines capacity as at September 30th, 2026 was 3.34 million hours, representing an increase of 26.2% compared with 2.65 million hours in FY26. As we diversify across industries, customers, and applications, contributions from different product categories will continue to evolve. Our focus is to maintain a sustainable overall profitable profile broadly in line with the company's historical range over the medium term. We continue to work on operational efficiencies across manufacturing, procurement, resource utilization, and working capital. Our objective is to support growth with disciplined cost management and prudent capital allocations while continuing to invest in capabilities required for future programs. Overall, H1 FY27 reflects healthy growth in revenue and profitability while maintaining a balanced approach to margins, leverage, and capital deployment. With this, I will now request Bhavin Bhai, our Chief Revenue Officer, to take you through the business updates, revenue mix, and order book positions. Thank you all. Bhavin Acharya:

Thank you, Paras Bhai. Very good afternoon to everyone. Let me take you through the business performance. For the quarter ended September 30th, revenue from energy contributed 53.5%, motion control and automation contributed 22.9%, industrial equipment systems contributed 19.4%, and the other diversified application contributed to 4.2%. This mix reflects the spread of our business across multiple industrial segments. From a geographical perspective, North America contributed 65.5%, Asia contributed around 20.9%, India was at 10.8%, and Europe and United Kingdom was 2.8% of the revenue base considered for the geographical analysis. Approximately 89% of our revenue during the quarter was generated from outside India, which reflects the strong and sustained confidence of our global customers in Omnitech's capabilities, quality, and execution.

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Omnitech Engineering Limited November 05, 2026 The NADCAP certification program is also well underway and is progressing well as per the given schedule. In aerospace and defense, the first article development orders are already underway, and we have also received some approvals regarding which the additional commercial opportunity are in the pipeline. We have also made progress in the data center infrastructure value chain following successful first article approval, and Omnitech has commenced receiving commercial orders, representing an encouraging step in the development of this new business segment. Our quality infrastructure has also strengthened with the NABL accreditation of our in-house metallurgical lab in accordance to ISO 17025. This enhances our testing credentials and further supports customers' confidence and qualification requirements with global OEMs. Our order book as of October 31st stood at around INR3,178 crores. The order book continues to be led by energy at 76% followed by motion control and automation at roughly around 12%, and industrial equipment system at around 11.5%. These programs are long-term in nature and are executed progressively in line with customer schedules and program ramp-up plans. For the participants joining us for the first time, just to let you know that Omnitech has completed 19 years of operation and now serves more than 270 global customers across 24 countries. Our focus remains on disciplined conversion of the order book, deepening existing customer relationships, and gradually building new businesses across selected strategic industries. With this overview, we will be now happy to answer your questions. So thank you very much. Moderator:

Thank you, sir. We will now begin the question-and-answer session. The first question is from the line of Mr. Arham from Arham Investments. Please go ahead.

Arham:

Yes, hi, congrats on a decent set of numbers. I just wanted to ask, in regards to the defense, the first development orders, are we supplying majorly to Indian defense? And specifically, are we doing any projects related to Sukhoi and BrahMos?

Management:

So, as far as the defense programs are concerned, I can't name their company names as of now, but we are in at a decent level with all the major defense players within India.

Arham:

Understood. And also we are also diversifying towards gas turbines. So we'll be concentrating on the both blade part or apart from the blades, other components for the gas turbine?

Management:

So we are basically focusing on gas turbine. But we are currently focusing on all other components as far as gas turbines are concerned and not on the blade side.

Arham:

Yes. Just last question from my side. Like many of your competitors in India specifically have actually set up dedicated facilities for the end customer. So do we also have talks with any of our end customers of setting up a dedicated facility for them?

Management:

So this is a little bit premature to discuss on the facility aspect of it, but we are -- so most of the -- if you have seen our deck, a lot of customers are all large OEMs with whom we are already

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Omnitech Engineering Limited November 05, 2026 working. And there are a lot of discussions ongoing at the moment, but that we will be able to only tell you once we have certain confirmations from some somebody. So right now it is all on the preliminary stage side, and we would like to continue as to the way we are doing things right now. Arham:

Understood. I'll join back in the queue. Thank you.

Moderator:

Thank you. The next question is from the line of Somal Jain from Lucky Investments. Please go ahead.

Somal Jain:

Hi sir, thank you for taking my question. Congrats on diversification into data center infrastructure and defense with the first commercial orders. I just wanted to get your sense on how far are we from a few more major orders like the ones that you have received in the past in oil and gas industry, right? In any of the new spaces or within oil and gas itself, in your sense, how far would we be from taking another step jump in terms of the order book or ordering flow? It could be across sectors. And if you cannot give me exact details but just a directional sense of any of the large order pipelines that you have or engagements with customers that have potential to give orders of that magnitude. That would be helpful to know?

Management:

So there are good discussions, and that is actually our forte in terms of being associated with the large OEMs. The execution part is also very important. To secure an order, it's an easy aspect, but to execute it, that is one of the most important aspects. So for us, executing the orders, supplying to the customers based on a consistent performance, that is a very key metrics for us. So as far as the order booking is concerned, it's still very healthy and it's going to remain healthy as we are growing. And we are getting associated with more larger and larger OEMs. I think we are -- so we have a good traction. It's up to how we want to execute and how we want to make sure that there has to be a sustainability of the business. That is the more important call in getting more and more orders.

Somal Jain:

Got it. And sir, as a follow-up to that, fair to say that, within oil and gas industry would focus on executing these large orders that we have before looking for any further framework agreements or sort of long-term supply agreements?

Management:

No, not necessary, because at the same time we are also increasing our capacity. We are evaluating all aspects of that in totality. At the same time, we are also working on getting into new different segments and industries. Which we have successfully done so with defense and data center. So I think, it's just matter of time that we'll have something more ongoing in coming months.

Somal Jain:

Okay. I have one final question. You mentioned that you are trying to get associated with larger and larger OEMs. Possible to mention the nature of the OEM or the industry that they operate in? Which sort of segment is the most exciting or the most lucrative to you in a foreseeable future?

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Omnitech Engineering Limited November 05, 2026 Management:

Based on the overall market scenarios and so on, be it any industry, for say, be it oil and gas, be it motion control automation, be it defense, be it gas turbine, be it data center, all the industries are relatively doing reasonably well. And of course, that you can even countercheck from your end as well. And we are part of all the major industries where the traction is pretty good at the moment. So I think, India per se is in right place at the right time.

Somal Jain:

Okay. Thank you. I'll come back in the queue.

Management:

Thank you.

Moderator:

The next question is from the line of Mr. Saurabh from Sameeksha Capital. Please go ahead.

Saurabh:

Yes, hi, thanks for the opportunity. So like…

Moderator:

I'm Sorry to interrupt, Mr. Saurabh. Can you come again with your question? Your voice is breaking in between. No, sir, it's not better. Can you come again?

Saurabh:

Okay, sure.

Moderator:

Yes. Can you say your question now, sir?

Saurabh:

Am I audible now? Hello?

Moderator:

Yes, sir, you're audible. Please go ahead.

Saurabh:

Yes. So like my question was broadly on providing components in the data center segment. So what kind of components are we providing? And like, I wanted to understand what are the approval cycles in this segment? And, yes, broadly on that, and are the margins going to differ from what we supply normally in the oil and gas or energy side?

Management:

So, more or less, first of all, let me answer on the margins. Margins won't differ at all. It would probably remain on the same levels where we are operating at the moment. The second aspect, what you talk about the qualification time. The qualification time would roughly take around anywhere between 8 to 14 months depending upon how critical the nature of supply is. So that also, you know, we have been working since last 1.5 years to reach where we are today. So that is the nature of the business. So that qualification time per se will go as much as anywhere between 8 to 14 months.

Saurabh:

So, like a follow-up on this. If we look at our current skill set and say, energy side. So does the skill set of providing precision components in the data center side differ? Do we need to scale up on that part, or are we geared towards this?

Management:

No. So there are 2 aspects to this. So we have a very strong internal engineering team who is well-versed with the industry. So what also happens in the second aspect that we also bring in skill set which is product project matter experts.

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Omnitech Engineering Limited November 05, 2026 So be it from the product side of it or be it from the project side of it, we bring in those skill set in the plant, in the facility, and they are the ones who are part of the system to develop and build those industries. So if we are talking about any industry per se we do have a skill set of people from that particular industry to ensure that we can scale at the level at what anybody would like to scale. Saurabh:

Okay, makes sense. And lastly, on the part of -- so what is your outlook on global capex cycles in the oil and gas segment? And even last I read is that North America has been shifting off its capex in the oil and gas side. So, is the demand still intact, or do we see like incremental orders coming up? And like even if we talk of the data center part, we are seeing gradual -- we might see a gradual decrease in the capex side. What was your outlook on this based on how demand is picking up?

Management:

So, we are more on the operation and maintenance side of the business. So basically, where we supply, of course we do supply from the capex side also, but that is very negligible on the overall scale of our energy business. Now when we look at the overall oil and gas market, from our perspective it looks good as of now. And with the OEMs, with whomever we are working with and talking to, everybody is very much positive because it is not only about the Middle East aspect of it. But there's a lot of traction in the North Sea as well as in the Venezuela side of the opportunities. So going forward, everybody feels that the markets would remain pretty much steady and hold up to the numbers as to what and how they are operating at. But as Omnitech is concerned, we are more on the operation and maintenance side of the supply. So that keeps on. So, once the well is operational, usually you keep on requiring components, product lines and so on and so forth.

Saurabh:

Perfect. I like -- yes go on.

Management:

Sorry, go on.

Saurabh:

And largely on the part of -- so the government recently passed a good amount of budget on building a clean energy capex of, I guess, around 92 gigawatts. So, do we see any benefits coming on that side? And like just to add on this, so to sustain, say, 30%-35% of growth from here, what is the amount of capex do we see getting in the business? And or you can even guide on a GFA or net asset turn, what is the sustainable number that you see?

Management:

So, if we talk about from the business perspective, First of all, see, the numbers and the order book and everything reflects that we are growing at the level at which we are growing as far as the numbers are talking about. As far as capacity building is concerned, that is also underway by we have implemented, starting development of our Chhapara location, adding capacities to it. So right now, of course, building and everything is under construction and slowly and steadily the capacity would also come in.

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Omnitech Engineering Limited November 05, 2026 So as far as that aspect is concerned, we have already taken steps to ensure that that business growth momentum continues to remain going forward also. Saurabh:

So, any guidance on the asset turns number or, and second like the first question was on part of the clean energy capex which the government had passed on. So do we see any benefit coming from that side?

Management:

Yes, see, there is one scheme from the Government in the Gujarat, Gujarat Viksit Scheme. So that we are looking. So, there are some of the opportunities what we are doing the capex in the next 5 years. So, there is an IPO capex which we are doing, and we will do some capex from the debt plus our internal accruals. So, for that we are looking some of the government schemes under the Gujarat Viksit scheme.

Saurabh:

Perfect. Thank you and congratulations. Happy Diwali

Management:

Thank you, Happy Diwali to you.

Moderator:

The next question is from the line of Charvin from Spark Capital, please go ahead.

Charvin:

Yes, hi thank you for the opportunity. So, my first question was we have seen we have seen an increase in the other expenses as a percentage of sales. So, what is the diver for that? And second question is, what kind of components are you supplying on the data center infrastructure side and on the defense side? What would be the final application of that?

Pawan Kumar:

So, can you pardon the question for the other expense?

Charvin:

Yes, so other expense is as a percentage of sales has increased. If you see Q-o-Q, it is at around 28% as a percentage of sales. So, what is the reason for that increase in other expense?

Management:

Other increase, we have -- so we include the consumptions of the tooling and the consumables, you say, which got ramp up demand in Q3 So, this is the higher tooling and the consumables usage which we are using and some of the things which we are doing the job work for some of the things like the heat treatment and like that, which schedules for the new capacity ramp-ups and higher performance in the consumables and the new machines. So that is some of the things which include in the other expense which we are looking at present at higher side in the Q2. But if we see the all over the FY27, then we will be at the par what we are expecting for the percentage of the sales revenue for the ramp up of the for the Q3 and Q4

Charvin:

Okay, and my second question was what kind of components are you going to manufacture on the data center side and the defense side? if you can comment on the final application, like what will be components?

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Omnitech Engineering Limited November 05, 2026 Management:

Yes, so basically data center is more towards machine component as well as the assemblies for cooling systems and so on. And as far as defense is concerned, there also we are supplying machine components, and we are recently in process to get awarded for certain subsystems.

Charvin:

Okay, okay. Yes, thank you.

Management:

Thank you.

Moderator:

Thank you. The next question is from the line of Mr. Pratham Doshi from Elara Capital. Please go ahead.

Pratham Doshi:

Thank you for giving this opportunity. And am I audible?

Moderator:

Yes, sir.

Pratham Doshi:

So, I actually wanted to ask about the order book, which is currently around like you mentioned, 3,178 crores. So, like for at like, what are the weatherford delivery schedules and currency, raw material pass-through, and cancellation terms for this order book as well? Like, can you mention the details about it?

Management:

Yes, so basically these orders are mainly long-term orders which are for 5 years to be executed in 5 years. So slowly and steadily it gets ramped up to get the complete dispatches done. So, this year there would be an X number, the next year there would be a Y number, and slowly and steadily it will get the ramp-up done from the capacity side from our end. And based on that, the dispatches would start getting executed. So, the deliveries would basically span out in next 5 years. In addition to that aspect, what was the second question.

Pratham Doshi:

So, what is the currency drop, material pass-through, and cancellation terms?

Management:

Usually these are all orders which are globally signed and accepted. So, the cancellation is not part of the discussion, or that is not in the system. However, as far as the raw material and the currency, there is always a factor in aspect which is basically a pass-through. So, there is a clause for different customers, there are always different contractual agreements where it can be in between 5% to 7%, 8%. Within that fluctuation the X party has to absorb. If it goes up or if it goes down, it gets -- it automatically gets appropriated based on the numbers. And that is always again reviewed every quarterly or half-yearly, and in some cases even one year.

Pratham Doshi:

Okay sir. Thank you. I had a follow-up question, like Yes, the growth outlook like for the revenue grew 5.3% quarter on quarter and PAT 2.8% against 40.5% and 35.5% Y-o-Y. So, what explains the sequential slowdown and what revenue and margin do you guide for H2 FY27 and FY28?

Management:

So, see this is the Q-on-Q basis. So, if you see the overall, then overall we are looking as a historical growth margin, which was around, say, 32%-33%. So, I think so for the Q3 and Q4, we will be in line for the full year between 32%-33% of margins and tax.

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Omnitech Engineering Limited November 05, 2026 Pratham Doshi:

Okay, sir, thank you. And one more question, like after the IPO, equity rose from like INR203.6 crores to INR679.7 crores, yet gross borrowings were around INR397.8 crores at March, alongside INR163.8 crores cash and INR1,311 crores of financial assets. How were the IPO proceeds used against the stated objects?

Management:

So, if you will see, so out of INR418 crores of the IPO object at present there was INR50 crores for the debt repayment that we have already done. So, if you will see, then around INR208 crores has been utilized all over the project of the IPO, and around INR210 crores are unutilized which will be utilized as per the schedules.

Pratham Doshi:

Okay. And sir, the finance cost was around INR11.73 crores in Q2, up 18.5% Y-o-Y and 12.2% Q-o-Q. So, what is your total gross debt and average borrowing cost?

Management:

Average borrowing cost will be, I think, around 8% to 8.25%.

Pratham Doshi:

Okay, thank you, sir. That's all from my side. I'll stand in the queue. Thank you.

Moderator:

Thank you. The next question is from the line of Mr. Pawan Kumar from Shade Capital. Please go ahead.

Pawan Kumar:

Good evening, sir. Thank you for the opportunity. So, my first question is, we have seen you have reported an increase in machining capacity. So, can you tell what sort of peak revenue we can have from this capacity?

Management:

Okay, if you will see, then it has been grown by around 26% as compared to the last financial year, as, as we, we are doing in the machine hours capacity. So, at present we are in the utilization of around, say, 68% to 70% of the total utilization. And if so, we are keeping some of the spare capacity due to the, say, new -- some of the new business ramp up or existing customers business ramp up. And maximum we can go up to 80% to 85% of our utilization in the peak.

Pawan Kumar:

But give me a number. What could be number? Is it around INR900 crores, INR950 crores? What sort of revenue conversion would be on that capacity?

Management:

If you can see, then we are approaching around, say if you will see our historical growth, then we, we are at a CAGR growth of 30% to 35% year-on-year. And the same we are looking for the next 2 years.

Pawan Kumar:

And so, like we are increasing our order book, can capacity would be a limiting factor maybe for coming quarters or maybe next year?

Management:

No, no. So, for the same reasons, we are increasing our capacities to the IPO capex, and also, we are increasing some of the capex for internal accruals and some of the debt from the banks. So, at present we are not looking -- having some of -- there is scare of the capacity. So we are maintaining the capacity at far what we are planning for the next 2 years of the growth revenues.

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Omnitech Engineering Limited November 05, 2026 Pawan Kumar:

And sir, like for the expansion of this Chhapara location -- can you tell me the timelines when this capacity will be commissioned?

Management:

We, we are behind, say 1 to 2 months due to the -- suppose IPO was late and what came in the March. So we, we are looking to be completed in next 10 to 11 months, coming 11 months.

Pawan Kumar:

Okay. And sir, like, if you really see at the EBITDA margin, there was, I think, degrowth in quarterly basis also on year-on-year basis. So, can you highlight what are the reasons?

Management:

Yes, actually, if you will see, then the absolute value has been increased Y-o-Y on this quarter growth, but if you see as we mentioned today, we are coming into different segments like that data center, defense and like that. So, there is some of the operational leverage which we are taking at present so it is one of the reasons why you can see some of the decrease in EBITDA margin.

Pawan Kumar:

Lastly in terms of new orders, are we getting orders in aerospace and defense also?

Management:

Yes, sir. So, we already have secured a couple of FA, first article orders, and within that, certain first article orders have been executed and approved as well. So now we also have traction on the commercial production orders as well. So, we are good to go as far as defence and aerospace is concerned.

Pawan Kumar:

Okay, so thank you, thank you for all your answers.

Management:

Thank you, thank you,

Moderator:

Thank you. The next question is from the line of Mr. Virat Shah from LEO Financial Services. Please go ahead.

Virat Shah:

Hello, am I audible?

Moderator:

Yes, sir.

Virat Shah:

Yes, so I just wanted to understand about the INR3,178 crores of order book that we have, that what is going to be the timeline in terms of execution in H2 FY27, '28, and '29? Just a rough figure. And how do we deal with the prices linked to the raw material like steel because the margins have fallen. So, should we look at 29%-30% going ahead, or should we revert back to normalized 35%-40% as was the case before? Thank you.

Management:

Yes, so first of all, as far as the pricing is concerned, pricing, raw material pricing as I mentioned earlier as well, that it is a pass-through. So that is basically discussed and considered as far as on quarterly or half-yearly basis. So that is it's going to remain the way it is. As far as the order book is concerned, it ranges from -- certain orders are ranging from, 1 year to 2 years and 3 years, and some of the larger ones like Weatherford is for 5 years. And we have given a timeline that it would be ramping up gradually. So, there are dispatches even in this year, but it would slowly and steadily ramp up, get ramped up as soon as we have new capacities and plant which is getting ready it would start getting ramped up from there

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Omnitech Engineering Limited November 05, 2026 onwards. So, we look at the numbers going forward in FY28, and then of course getting more ramped up in FY29 and FY30. Virat Shah:

Okay, thank you. And from the Chhapara University -- sorry Chhapara business expansion what, what is the expected revenue potential over there? Like, how would you ramp up your utilization rates?

Management:

So, if you will see, then our capacity will get increased. If once it will get completed, then see normally we have an asset strength. You can say we can go up to two times of our block. So, as we discussed earlier in the questions, we are looking within the next two years we are looking with our CAGR growth of 30% to 35% growth from here. So, so we are on track for those things.

Virat Shah:

Okay, thank you. And last question would be that your scrap sales were INR83 crores and approximately export incentives are also there, adding up to like INR120 crores in this quarter. So, is this like normal level or how should we look at it?

Management:

Right, it's I think so, it's on the regular basis. And it's, it's normal for us.

Virat Shah:

Okay, thank you.

Management:

Our 80%, 85% to 89% are the exports. So, so as per the government scheme, we, we receive the incentives and everything.

Virat Shah:

Understood. Thank you. All the best.

Moderator:

Thank you. The next question is from the line of Mr. Romit Nagpal from Terrapolis Asset Private Limited. Please go ahead.

Romit Nagpal:

Congratulations on a good set of numbers. You mentioned earlier to a participant, I think on your order book, which is about INR3,100 crores, this should be executable over maybe about, what, 5 years?

Management:

That's right, sir.

Romit Nagpal:

That could be roughly about, say, INR600 crores a year approximately?

Management:

That's right.

Romit Nagpal:

So, are we more or less right now without -- I know you're having new capacity coming probably by the end of this year, but as of now, till we reach there, should we assume that you're more or less at full capacity currently?

Management:

No. So as we mentioned that we -- first of all, our capacity utilization is somewhere around 71%, number 1. Number 2, when you say that the INR3,000 crores divided by 5 or 6 years it's not exactly the same way that it would be INR600 crores this year, because there are certain aspects

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Omnitech Engineering Limited November 05, 2026 to the entire program where we have given them the timeline that it would ramp up gradually based on the new investments which are coming in. And based on that, we would start incremental dispatches and incremental ramp-up. So, it's not also that if I have to execute INR600 crores, I'll put in all the machines today, because there is a lot of skill which is being demanded. There is a lot of learnings behind getting the execution done in a right way with the right quality. So, it's basically a gradual ramp-up which would happen going forward. Probably from FY28 you will start seeing those, and in FY29 you will see the largest one… Romit Nagpal:

Okay. You make a fair point.

Management:

All INR600 crores won't be executed this year.

Romit Nagpal:

No, you make a fair point. So I was just wondering, once you've got some additional capacity, what is the approximate value of orders that you would be able to execute if you had the order, say, next year? Just to get an idea broadly.

Management:

So basically, we are in a -- so the plan and all the investment what we are doing right now in capex and so on, that is as what Paras bhai did mention that we would definitely grow in range of 30% to 35% year-on-year for next, at least, 2 years.

Romit Nagpal:

Fair enough. The other thing I was noticing is that your EBIT margins last 2 years some say about 36% have now been gradually coming off, and these two quarters also it's hovering between 29%, 30%. Is there any range in where you would be comfortable operating in as far as EBITDA margin is concerned?

Management:

So, if you will see the absolute values are getting increased, but we are also doing the new product developments month-on-month and year-on-year basis. So, the raw material constraints and, say the MOQ of the raw materials and everything has been the part. Plus, as we discussed today, we are now going to the more segments like a data center defense and everything. So there is an operational leverage for the employees and everywhere so that the reasons why the EBITDA margin is getting little bit in the lower side. And yes, of course, we are assuming that by what is our historical EBITDA margin between, say, 30% to 33% that we are planning to sustain and maintain in going to 3 years.

Romit Nagpal:

Fair enough. So, you would say maybe between a range of 30%, 32% is what you'll be comfortable, right?

Management:

Yes.

Romit Nagpal:

Okay. Thank you. That's all I had.

Moderator:

Thank you. The next question is from the line of Mr. Arham from Arham Investment. Please go ahead.

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Omnitech Engineering Limited November 05, 2026 Arham:

Yes. Thanks once again for giving the opportunity. So, this year, as I know that historically we're going at 30%, 35%, but this year if you take H1, you've grown at more than, I think, around close to 50%. And what I've seen in your numbers are, you generally grow quarter-on-quarter also, maybe 5% or 10%. So, shouldn't this year you should grow about 40% considering good H1, and even H2 will be better than H1 if you see quarter-on-quarter also. Shouldn't we this year grow about 40% on top line?

Management:

No. You can see these figures are the year-on-year. So what was last year of Q2, so after that we have increased our capacities and capabilities, but we are estimating the allover revenue for this financial year will be around, say, between 30% to 35% of the growth revenue.

Arham:

Well, that's my question. So you don't de-grow quarter-on-quarter also. But if I just extrapolate quarter-on-quarter also minimum 5% growth, your overall top line growth for the year will come above 40%. I can understand next year you can guide for 30%, 35%, but shouldn't this year be more than 40% looking at how your Q1 and Q2 have panned.

Management:

Yes. It is good if you consider it this way. But overall, what we are looking, see, it is good if we grow for the 40%, then we will be happy for that. But at presently, by seeing, we are estimating around, say, 30% to 35% of growth.

Arham:

Okay. And another question I wanted to ask, once our new facility comes online, maybe I think it will come online by Q3 of FY28. So, what is the peak potential revenue we can achieve with expanded capacity including the existing capacity?

Management:

Can you please repeat the question?

Arham:

Yes. So, once the new facility comes, Chhapara facility comes online by, I think, Q3 maybe or FY28, what is the peak potential turnover for the company as a whole?

Management:

See, as we mentioned earlier, see, we are looking for the high peak of, say, around two times of the asset turn ratio. So if we grow, then you can see the -- say, we can calculate that around 30% to 35% growth for the next 2 years from what we are from the present. So, it will be, say, around two times of the asset expense what we have.

Arham:

So, approximately it will be around INR1,400 crores to INR1,500 crores top line, right, peak capacity for the company once the new facility comes online?

Management:

No, not that much will be. But you can say around INR1,100 crores to between INR1,200 crores you can grab that opportunity.

Arham:

Okay. And any other capex plan we have, sir, post that, because I think INR1,200 crores is also quite small for a company of your space working with OEM, because I feel like in 2 years that capacity will also get fully occupied. So, do we have any plan for further expanding?

Management:

Yes. We can have. If we will get more opportunities in everything, yes, we are planning apart from the IPO capex to do some of the capex with the help of our debt and internal accruals in the next 2, 3 years.

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Omnitech Engineering Limited November 05, 2026 Arham:

Understand. And just last one. So, full year EBITDA margin guidance is around 30% to 33%, right?

Management:

You can say between the range of 30% to 32%.

Arham:

Understand. Thank you, sir.

Management:

Thank you.

Moderator:

The next question is from the line of Mr. Meet from Prodigy Investment. Please go ahead, sir. Mr. Meet, are you online?

Meet:

Hello? Yes. Actually my questions are answered, so I'm good to…

Moderator:

All right. Thank you. As there are no further questions, I now hand the conference over to the management for closing comments. Please go ahead, sir.

Management:

All right. So, on behalf of the entire Omnitech team, I sincerely thank you for your continued support and confidence in the company, and we appreciate your participation today. So thank you very much.

Management:

Thank you.

Moderator:

Thank you, sir.

Management:

And wishing you all a very happy Diwali.

Moderator:

Thank you, sir. On behalf of Equirus Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Management:

Thank you.

Management:

Thank you, everyone.

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