Omnitech Engineering

• Omnitech Engineering is coming out with a 100% book building; initial public offering (IPO) of 2,69,93,223 shares of face value Rs 5 each in a price band Rs 216-227 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on February 25, 2026 and will close on February 27, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 43.20 times of its face value on the lower side and 45.40 times on the higher side.
• Book running lead managers to the issue are Equirus Capita and ICICI Securities.
• Compliance Officer for the issue is Bhoomi Manharbhai Vadhavana.

Profile of the company

Omnitech Engineering is one of the key manufacturers of high precision engineered components and assemblies supplying to global customers across industries such as energy, motion control & automation, industrial equipment systems, metal forming and other diversified industrial applications. With 19 years of experience, it manufactures highly engineered precision machined components and assemblies that are majorly utilized towards safety critical applications. It manufactures a wide range of components ranging from weight of 0.003 kg to 503.33 kg, diameter of 1.27 centimetre to 1 meters and length of 0.2 centimetre to 10 meters which helps it to cater to the diverse requirements of its marquee customer base. The company is one of India’s fastest growing manufacturers of high precision engineered components and assemblies amongst the identified peer set, in terms of revenue from operations, with an increase of 92.45% between Fiscal 2024 and Fiscal 2025 and a CAGR of 39.06% between Fiscal 2023 and Fiscal 2025.

Its products find applications in industries such as (i) Energy which includes supplies with end application primarily in oil & gas, wind energy and power sector; (ii) Motion Control and Automation which primarily includes supplies with electro-mechanical systems to end applications primarily in drives and motors, flow control, motion control, sensors, automation and hydraulics; (iii) Industrial Equipment Systems which includes supplies with end application primarily in aerospace ground support equipment, construction equipment, machineries for diverse applications, and components for winches and hoists; and (iv) Others which includes supplies with end application primarily in metal forming and other diversified industrial applications.

The company’s product offerings adhere to quality standards and specifications as specified by the customers, and that maintaining these high standards along with timely delivery has been instrumental in sustaining long-term relationship with its customers which is reflected in the repeat orders received from its customers. It has a strong track record of customer retention, with several long-standing relationships where it has consistently delivered its products to key clients over many years. Its customer relationships are a result of its design, engineering and manufacturing capabilities.

Proceed is being used for:

• Repayment and / or pre-payment, in full or in part, of certain outstanding borrowings availed by the company
• Setting up New Projects at Proposed Facility 1 at Village Chhapara, Lodhika, Rajkot, Gujarat through (i) civil construction and interior development; and (ii) purchase of equipment / machinery
• Setting up New Projects at Proposed Facility 2 at Chhapara, Lodhika, Rajkot, Gujarat; through (i) civil construction and interior development; and (ii) purchase of equipment / machinery
• Funding towards capital expenditure requirements for purchase and installation of solar panels on the rooftop at, and, purchase of new equipment / machinery for, existing manufacturing facility at village Chhapara, Lodhika, Rajkot, Gujarat (Existing Facility 2)
• General corporate purposes

Industry Overview

Precision engineered goods are components manufactured and designed with high level accuracy and tight endurances for meeting the strict requirements of industry standards, necessitating significant investments in building capability and processes by the manufacturers. These are often safety critical, and manufacturers of precision engineered goods have to take enormous care in their processes. These products are manufactured by using advanced technologies such as precision stampings, CNC machining and 3D printing, ensuring high durability, reliability and superior performance. In industries which require high quality and complex components such as oil and gas, automotive, aerospace, energy, industrial machinery, defence, construction equipment, rail & transportation, power transmission medical devices and electronics etc., precision engineering plays a significant role. To meet the specific needs of customers, these goods undergo detailed design, production and quality control processes.

In FY2026, the Indian precision engineered goods market is estimated to be dominated by automobiles sector as the largest end user with a share of 33% of the total market. It was followed by industrial machinery at 15%, defence at 10%, aerospace at 9%, electronic manufacturing services at 7%, construction equipment and rail and transportation both at 6% respectively, energy at 3%, oil and gas and food and agriculture at 2% each, power transmission at 1% and other end use industries at 6%. Certain clusters including Chennai, Pune, Rajkot, NCR, Hyderabad and Bengaluru have emerged as key geographies for precision manufacturing industry in India. For instance, Rajkot, is situated within a robust industrial ecosystem, providing access to a skilled labour force and vendor base for any outsourcing of job-work which companies may require.

For precision engineered goods, some of the emerging trends in customer demands comprises of miniaturization, Industry 4.0 integration and lightweight materials. Industries like electronics and medical technology, miniaturization plays an important role, pushing the need for smaller and extremely precise components. Internet of Things (IoT) and automation, some of the industry 4.0 technologies, are continuously expected to enhance productivity in the manufacturing process, reducing waste and improving quality control. Additionally, advanced composites and alloys, some of the lightweight materials, are increasingly gaining importance in the aerospace and automotive sectors as it improves fuel performance and efficiency. The demand for sustainable practices increases as the eco-friendly manufacturing becomes a priority to the environmentally conscious consumers. In FY2026, the precision engineered goods market in India is projected to have reached a value of $8,304 million, exhibiting a CAGR of 8.3% during the period of FY2019 to FY2026. Going forward, by FY2029, the Indian market is projected to reach a value of $11,615 million, showcasing a CAGR of 11.6% from FY2027 to FY2029.  

Pros and strengths

Diverse end-use industry applications and strong customer relationships: The company’s products find applications in industries such as (i) Energy which includes supplies with end application primarily in oil & gas, wind energy and power sector; (ii) Motion Control and Automation which primarily includes supplies with electro-mechanical systems to end applications primarily in drives and motors, flow control, motion control, sensors, automation and hydraulics; (iii) Industrial Equipment Systems which includes supplies with end application primarily in aerospace ground support equipment, construction equipment, machineries for diverse applications, and components for winches and hoists; and (iv) Others which includes supplies with end application primarily in metal forming and other diversified industrial applications. Moreover, the company has a strong track record of customer retention, with several long-standing relationships where it has consistently delivered its products to key clients over many years. It has over the time built long term relationship with its customers.

Strong international footprint with established global delivery model: During the 6 months ended September 30, 2025 and the last 3 Fiscals, it supplied to customers across 24 countries including United States of America, India, United Arab Emirates, Germany, Bulgaria, Sweden, United Kingdom, France, Australia and Canada with majority of its revenue from sale of products and services being derived from outside India. Further, the company’s ability to service customers across various geographies is enabled by its global delivery model and an understanding of its customers’ supply chains. In furtherance of its global delivery model, it has set up a warehouse in Houston, United States of America, operated by its Subsidiary, Omnitech Group Inc., which helps it to cater to its customers in the United States of America.

Strategically located manufacturing facilities with robust installed capacity: The company operates out of its 3 Manufacturing Facilities which are spread across 80,802.68 square meters with a combined installed annualised machining capacity of 2,429,856 machine hours and annualized fabrication capacity of 7,200 MTPA as at September 30, 2025. Its manufacturing facilities are strategically located, providing easy access to Mundra Port in Gujarat, which is around 300 kilometres from its facilities. This proximity facilitates the efficient import of raw materials and export of finished products to its customers. Its manufacturing facilities in Rajkot are situated within a robust industrial ecosystem, providing it with access to a skilled labour force and vendor base for any outsourcing of job-work it may require.

Comprehensive product portfolio with advanced machining capabilities: The company offers its customers a diverse range of products across raw materials, dimensions, manufacturing processes that the components need to go through, levels of assembly and packaging and dispatch options. Its diverse machining capabilities enables it to handle a variety of raw materials including carbon steel, alloy steel, stainless steel, nickel alloys, titanium, aluminium and specialized alloys in bar form, tubes, forgings, castings and in other forms. Its ability to process such diverse raw materials helps it to deliver a diverse range of fully assembled, ready-to-deploy solutions, reducing lead times and ensuring operational reliability for its clients.

Risks and concerns

High revenue contribution from limited customer base: The company generates significant revenue from its top 10 customers, and in the 6 months ended September 30, 2025, Fiscals 2025, 2024 and 2023, its revenue from top 10 customers were 56.04%, 47.87%, 61.27% and 68.88%, respectively, of its total revenue from sale of products and services. The loss of such customers or a significant reduction in its revenue from such customers will have a material adverse impact on its business.

Geographical concentration of manufacturing operations: The company’s existing manufacturing operations are based out of its 3 Manufacturing Facilities in Rajkot, Gujarat and its Proposed Facilities are also proposed to be located in Rajkot, Gujarat. The concentration of its Manufacturing Facilities and operations in a single location in Gujarat subjects it to various risks, including vulnerability to change of policies, laws and regulations or the political, availability of skilled manpower, disruption or disturbance in surrounding areas and natural calamities, any of which, could adversely affect its business, financial condition, results of operations, cash flows and prospects.

Risks associated with overseas revenue concentration: The company’s revenue from operations outside India constituted 78.98%, 74.95%, 72.97% and 75.12% of its total revenue from operations in the 6 months ended September 30, 2025, Fiscals 2025, 2024 and 2023, respectively. Its inability to operate or expand its business in such countries, or any adverse changes in the conditions affecting these markets, could adversely impact its business, financial condition, results of operations, cash flows, and future growth prospects.

Reliance on a limited number of suppliers: The company relies on limited number of suppliers for its material requirements which constitutes a significant part of its total expenses. The company has procured 52.48%, 43.32% and 46.74% of its total material requirements from top 10 suppliers in FY25, FY24 and FY23 respectively. Any increase in the prices, availability and quality of materials or loss of these suppliers could adversely affect its reputation, business, results from operations, financial conditions and cash flows.

Outlook

Omnitech Engineering is a manufacturing and engineering solutions company that specializes in providing precision-engineered components, turnkey industrial automation solutions, and customized mechanical systems for various industries. The company's operations supported by its manufacturing facilities, offering scale, flexibility and locational advantage. It also has a diversified product portfolio enabled by product development capabilities. On the concern side, the company generates significant revenue from its top 10 customers and the loss of such customers or a significant reduction in its revenue from such customers will have a material adverse impact on its business. Moreover, the company’s manufacturing operations including its proposed Facilities are located in Rajkot, Gujarat, which exposes it to risks associated with geographic concentration. Any disruption at this location could adversely affect its business operations. 

The issue has been offering 2,69,93,223 shares in a price band of Rs 216-227 per equity share. The aggregate size of the offer is around Rs 583.05 crore to Rs 612.75 crore based on lower and upper price band respectively. Minimum application is to be made for 66 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 92.45% from Rs 1,781.80 million in Fiscal 2024 to Rs 3,429.13 million in Fiscal 2025. Moreover, the company’s profit after tax increased by 131.99% from Rs 189.08 million in Fiscal 2024 to Rs 438.65 million in Fiscal 2025.

The company intends to target customers in new end-use industries such as defence, space, semi-conductors, aerospace and railways while further deepening its presence across industrial machinery, safety critical applications in automobiles, aerospace, industrial equipment amongst others. It has been taking multiple initiatives towards further developing its capabilities across such end-user industries. For instance, it had applied for and received AS9100:2016 certification which is a quality management system designed to ensure consistent quality, cost, and delivery performance across the aerospace supply chain. Similarly, as a part of the Existing Facility 3 at Padavala, Rajkot, Gujarat, it has recently set up a fabrication line which should further help it in supplying fully assembled components to its customers. Further, to strengthen its global delivery model, it proposes to establish warehouses in Europe, Middle East and another warehouse in United States of America which will enable it to improve service to its existing customers in Europe, Middle East, and North America and also onboard new customers. These warehouses will also assist in streamlining logistics, ensuring faster and cost-effective deliveries through access to major ports and transport networks in these geographies.