💰 Financial Performance

Revenue Growth by Segment

The Automotive segment remains the primary driver, contributing 82.4% (INR 72.99 Cr) of revenue in H1 FY26, though its share decreased from 91.1% in FY25 as the company diversified. The Defense segment showed explosive growth, with H1 FY26 revenue of INR 5.46 Cr nearly matching the entire FY25 revenue of INR 5.55 Cr, now representing 6.2% of total sales. Marine revenue contributed 6.5% (INR 5.80 Cr) in H1 FY26, while new segments like Renewables (0.7%) and Telecom (0.1%) remain nascent.

Geographic Revenue Split

Domestic sales account for 79.9% of total revenue as of FY25. Exports contribute 20.1% (INR 17.91 Cr), with the company expanding its international footprint from 10 countries in FY24 to 13 countries in FY25, reducing dependence on the Indian market.

Profitability Margins

Net Profit Margin (PAT %) has seen a significant upward trend, rising from 4.7% in FY23 to 10.5% in FY24, 11.5% in FY25, and reaching 11.6% in H1 FY26. This improvement is driven by a shift toward high-value precision components in the Defense and Marine sectors.

EBITDA Margin

EBITDA margin improved to 19.5% in H1 FY26, an 80 bps increase compared to 18.7% in H1 FY25. Absolute EBITDA for H1 FY26 stood at INR 17.65 Cr, representing a 37.7% YoY growth, reflecting better operational leverage and product mix.

Capital Expenditure

The company has aggressively expanded its asset base, with fixed asset purchases of INR 33.27 Cr in FY25 and INR 17.52 Cr in H1 FY26. Total Gross Block reached INR 88.15 Cr by September 2025 to support the establishment of Unit 5 for Forging and capacity increases in Machining.

Credit Rating & Borrowing

The company maintains a conservative leverage profile with a Debt-Equity ratio of 0.37x as of H1 FY26, down significantly from 1.87x in FY23. Finance costs for H1 FY26 were INR 1.57 Cr, representing 1.7% of total revenue.

⚙️ Operational Drivers

Raw Materials

The primary raw materials are High Carbon Steel Bars and Low Carbon Steel Bars, which are essential for the production of precision machined and forged components.

Import Sources

Raw materials are primarily sourced domestically within India, leveraging the ecosystem of the promoter group's existing steel manufacturing facilities.

Key Suppliers

A key strategic supplier is the Anglian Omega Group, a corporate promoter of OBSCP that specializes in manufacturing High/Low Carbon Steel Bars, ensuring supply chain integration.

Capacity Expansion

The company operates 5 manufacturing units. Recent expansions include the 2025 establishment of Unit 5 in Pune dedicated to Forging and the 2023 commencement of Unit 3 in Tamil Nadu for Machining to serve southern Indian clients.

Raw Material Costs

Consumption and manufacturing expenses stood at INR 55.81 Cr in H1 FY26, representing approximately 63% of operational revenue. The company utilizes a mix of in-house manufacturing and strategic sourcing to manage costs.

Manufacturing Efficiency

Efficiency is highlighted by the improvement in ROCE, which reached 40.6% in FY25, indicating high productivity from the capital employed in manufacturing assets.

📈 Strategic Growth

Expected Growth Rate

32%

Growth Strategy

Growth is targeted through sector diversification and capital infusion. The company is raising approximately INR 53.21 Cr via a preferential issue of 17,11,200 equity shares at INR 311 each to fund expansion. Strategically, it is moving into the Medical sector (first order of INR 1.77 Cr received in Dec 2025) and scaling its Defense business, which grew to 6.2% of revenue in H1 FY26.

Products & Services

Precision turned parts, machined components, investment castings, forgings, and specialized medical implant parts.

Brand Portfolio

OBSC Perfection

New Products/Services

Entry into the Medical Implants industry with a new product line of implant parts, expected to contribute to revenue starting Q3 FY26 following a INR 1.77 Cr initial order.

Market Expansion

Expansion into the US market is supported by the appointment of a dedicated Advisor for the USA to increase export contributions beyond the current 20.1%.

Strategic Alliances

The company maintains a strong relationship with the Anglian Omega Group for raw material security and technical synergy.

🌍 External Factors

Industry Trends

The industry is shifting toward high-precision engineering and localized manufacturing for Defense and Medical sectors. OBSCP is positioning itself as a multi-sector precision player to capture this 15-20% industry-wide growth trend.

Competitive Landscape

Competes with other precision component manufacturers in the SME and mid-cap space, though its multi-process capability (casting and forging) provides a competitive edge.

Competitive Moat

The moat is built on integrated manufacturing (Casting + Forging + Machining) and a diversified sector base (Auto, Defense, Marine, Medical). This 'one-stop-shop' capability for precision parts is sustainable due to high capital requirements and technical certifications (IATF 16949).

Macro Economic Sensitivity

Highly sensitive to the Indian Automotive sector's growth and the government's 'Make in India' initiatives in the Defense sector, which drove a 32% YoY revenue increase.

Consumer Behavior

Increased demand for high-quality medical implants and advanced defense equipment is shifting the company's focus toward non-automotive high-margin segments.

Geopolitical Risks

Trade barriers or shifts in global supply chains could impact the 20.1% export revenue, particularly as the company seeks to expand its US presence.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to stringent IATF standards for automotive components and specific precision standards for the new medical implant segment.

Environmental Compliance

The company holds ISO 9001:2015 and IATF 16949:2016 certifications, ensuring compliance with international quality and manufacturing standards.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 18.4% (INR 2.36 Cr tax on INR 12.87 Cr PBT).

Legal Contingencies

No pending material court cases or litigation values were disclosed in the provided investor and regulatory filings.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful ramp-up of the new Forging unit (Unit 5) and the absorption of the 17.11 lakh new shares being issued, which could dilute earnings if growth does not materialize.

Geographic Concentration Risk

100% of manufacturing facilities are located in India (Pune and Tamil Nadu), creating a high geographic concentration risk for production.

Third Party Dependencies

Significant dependency on the promoter-linked Anglian Omega Group for raw material supply, though this also provides supply security.

Technology Obsolescence Risk

Risk of shift toward Electric Vehicles (EVs) which require fewer traditional engine/transmission machined parts; the company is mitigating this by diversifying into Defense and Medical sectors.

Credit & Counterparty Risk

Trade receivables stood at INR 42.09 Cr in H1 FY26, representing 46.5% of half-yearly revenue, indicating a significant credit period provided to customers.