OMAXAUTO - Omax Autos

📊 NSE: OMAXAUTO 🏢 Auto Ancillaries 📅 Last Updated: 12/14/2025 10:40

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income grew 24.00% YoY to INR 300.78 Cr in FY23, driven by the commencement of production at the Long Member Plant. The company operates in a single segment of metal sheet components and parts.

Geographic Revenue Split

Not disclosed in available documents. Manufacturing units are located in Uttar Pradesh and Haryana.

Profitability Margins

Operating Profit Margin was 22.87% in FY25, a slight decline of 1.16% from 23.14% in FY24. Net Profit Margin improved significantly by 78.04% to 5.84% in FY25 from 3.28% in FY24.

EBITDA Margin

EBITDA margin was 4.60% (INR 13.83 Cr) in FY23, recovering from -11.30% (INR -25.12 Cr) in FY22. Core profitability improved due to the operationalization of the Long Member Plant.

Capital Expenditure

Not disclosed in available documents, though significant investment was made in the Long Member Plant which commenced production in FY23.

Credit Rating & Borrowing

Credit rating was IVR BB-/Stable (Long term) and IVR A4 (Short term) as of January 2024, subsequently reaffirmed and withdrawn at the company's request. Interest coverage ratio improved 30.48% to 2.74 in FY25.

⚙️ Operational Drivers

Raw Materials

Sheet metal (Steel) is the primary raw material used for manufacturing automobile and railway components. Specific cost percentages are not disclosed.

Capacity Expansion

The company commenced production at its Long Member Plant in FY23, which was the primary driver for the 24.00% revenue growth that year.

Raw Material Costs

Raw material price increases adversely impacted the Railway business due to the fixed-price nature of railway contracts, squeezing margins when input costs rose.

Manufacturing Efficiency

Inventory turnover ratio improved 26.06% to 28.15 in FY25, indicating higher operational efficiency in moving stock.

📈 Strategic Growth

Expected Growth Rate

24%

Growth Strategy

Growth is driven by the Commercial Vehicle (CV) segment revival in construction and mining, and the operationalization of the Long Member Plant. The company leverages a 30-year relationship with Tata Motors Limited to secure repeat orders and maintain a healthy market share in frame assembly.

Products & Services

Sheet metal components, long members for trucks/buses, frame assemblies for medium and heavy trucks, and frame assemblies for CNG intermediate CVs.

Brand Portfolio

Omax Autos Limited.

New Products/Services

Frame assembly for intermediate CVs running on compressed natural gas (CNG).

Market Share & Ranking

Healthy market share with Tata Motors Limited in long-member manufacturing and frame assembly for medium and heavy trucks and buses.

🌍 External Factors

Industry Trends

The CV industry is growing due to infrastructure revival and reopening of schools/tourism. There is a technology shift toward CNG for intermediate commercial vehicles.

Competitive Moat

Moat is built on a 30-year established relationship with Tata Motors and specialized manufacturing capabilities for heavy CV frame assemblies, which are difficult for new entrants to replicate quickly.

Macro Economic Sensitivity

Sensitive to infrastructure segments (construction, mining, highway construction), RBI interest rate changes, and general economic revival affecting fleet operator profitability.

Consumer Behavior

Revival in tourism and reopening of schools is driving demand for buses and related frame assemblies.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act, 2013 and Indian Accounting Standards (Ind AS). GST regulations under the CGST Act, 2017.

Taxation Policy Impact

The company faced a demand for tax with interest and penal action under Section 74(1) of the CGST Act, 2017, for alleged intent to evade tax.

Legal Contingencies

A penalty proceeding for a total demand of INR 125,55,66,334 (approx. INR 125.56 Cr) was dropped by the Commissioner (Appeals), Lucknow, on November 18, 2025.