Is Omnitech Engineering IPO Good or Bad – Detailed Review

Omnitech Engineering Limited’s IPO is set to open its initial public offering from February 25, 2026, to February 27, 2026. When considering applying for this IPO, potential investors might have questions about whether the Omnitech Engineering IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive analysis of Omnitech Engineering IPO, covering its business operations and fundamental analysis from its RHP to help you make an informed investment decision.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Omnitech Engineering IPO Review

Omnitech Engineering Limited's IPO is open for subscription from February 25, 2026, to February 27, 2026, with listing expected on March 05, 2026, on NSE and BSE.

The company is a key manufacturer of high-precision engineered components and assemblies, specializing in supplying global original equipment manufacturers (OEMs) across heavy industries. Operating as a specialized player in the high-precision machining ecosystem, it manufactures components used primarily in safety-critical applications.

As of September 30, 2025, the company serves over 256 customers across 24 countries, including the USA, UAE, Germany, and India. Its core business focuses on highly engineered precision-machined parts tailored to specific client requirements, which form the backbone of its revenue.

The company’s diversified product portfolio serves major sectors including Energy (50.53% of revenue), Motion Control and Automation (26.82%), and Industrial Equipment Systems (18.54%). Omnitech operates three manufacturing facilities in Rajkot, Gujarat, featuring a sophisticated setup of approximately 383 CNC machines capable of precision levels as tight as 5 microns. The company identifies Udaykumar Arunkumar Parekh and Dharmi A Parekh as its promoters, who collectively hold 94.08% of the pre-issue paid-up equity share capital.

Omnitech operates within the global precision engineering industry, which is undergoing rapid transformation driven by China+1 and Europe+1 supply chain strategies. The global market, valued at USD 269.1 billion in 2024, is expected to grow at a CAGR of 9.9% to reach USD 395.4 billion by 2028. Indian manufacturers are increasingly positioned as preferred hubs for global OEMs, particularly in high-margin segments like aerospace, defense, and renewable energy.

The company’s financial performance reflects robust growth and high operational efficiency. Revenue from operations accelerated from Rs 177.33 crore in FY23 to Rs 342.91 crore in FY25, reporting Rs 228.17 crore for H1 FY26. Profit After Tax (PAT) rose from Rs 32.29 crore in FY23 to Rs 43.87 crore in FY25, with a reported PAT of Rs 27.78 crore for H1 FY26.

Omnitech maintains industry-leading efficiency, with an EBITDA margin of 34.31% and a Return on Equity (RoE) of 21.55% in FY25. These figures significantly outperform established peers like MTAR Technologies and Dynamatic Technologies in terms of profitability ratios.

Key strengths include its strong marquee customer base (including SLB and Halliburton), high-precision technical expertise, and a massive order book of Rs 1,764.78 crore, providing strong revenue visibility. Risks involve customer concentration (56.04% of revenue from the top 10 clients), significant geographic concentration in Rajkot, and potential tariff and trade risks due to high exposure to the USA market.

The IPO consists of a total book-built issue worth Rs 583 crore, comprising a fresh issue of Rs 418 crore and an offer for sale (OFS) of Rs 165 crore. The fresh proceeds will be used for setting up new manufacturing projects (Rs 233.56 crore), debt repayment (Rs 50 crore), and capex for existing facilities.

Shares are priced in the band of Rs 216 to Rs 227 per share, with a lot size of 66 shares.

Company Overview of Omnitech Engineering IPO

Omnitech Engineering Limited is one of the key manufacturers of high-precision engineered components and assemblies, specializing in supplying global original equipment manufacturers across various heavy industries. The company operates as a specialised player in the high-precision machining ecosystem, manufacturing components used primarily in safety-critical applications. As of September 30, 2025, the company serves over 256 customers across 24 countries, including the USA, UAE, Germany, and India.

Its core business focus is on the manufacture of highly engineered precision-machined components and assemblies tailored to specific client requirements, which forms the backbone of its revenue from operations.

The diversified product portfolio includes specialized engineering categories primarily utilized across its major end-user industries:

• Energy: Safety-critical products for drilling, exploration, and refining in the oil and gas sector, as well as components for wind energy.

• Motion Control and Automation: Drives, motors, flow control systems, and robotics components.

• Industrial Equipment Systems: Intricate parts for aerospace ground support, construction machinery, and mining equipment.

• Diversified Industrials: Precision components for automotive safety applications and metal forming.

The manufacturing presence is concentrated in Rajkot, Gujarat, where the company operates three manufacturing facilities as of September 30, 2025.

The core operational strength is built around its high-precision capabilities, with a dual focus on scale and flexibility. This strength is demonstrated by its sophisticated manufacturing setup, which includes around 383 Computer Numerical Control (CNC) machines and specialized processes like phosphating and nickel plating, resulting in precision levels as tight as 5 microns (0.005 mm).

Furthermore, the company has successfully established a global delivery model, including a strategic warehouse in Houston, USA, maintaining a constant focus on quality.

As of September 30, 2025, the company reported a strong order book of Rs 1,764.78 crore, largely driven by a major order in the energy segment. As a result, the energy segment accounts for 74.07% of the total outstanding orders.

During the half-year ended September 30, 2025, Omnitech Engineering generated Rs 228.17 crore in revenue from operations, reflecting its operational scale and execution strength.

The company’s revenue mix is diversified across multiple industries, with energy contributing the largest share.

The company identifies Udaykumar Arunkumar Parekh and Dharmi A Parekh as its promoters. The promoters and promoter group collectively hold 94.08% of the pre-issue paid-up equity share capital. Key leadership includes Udaykumar Arunkumar Parekh (Chairman and Managing Director), Paras Mukundrai Parekh (Whole-time Director and CFO), and Bhoomi Manharbhai Vadhavana (Company Secretary and Compliance Officer).

Industry Overview of Omnitech Engineering IPO

Omnitech Engineering Limited operates within the global and domestic precision engineering industry, a critical segment for industrial growth undergoing rapid transformation. This growth is primarily driven by the China+1 and Europe+1 global supply chain strategies, increasing industrial automation, and the expansion of the energy and aerospace sectors.

The global market for precision-engineered goods was valued at approximately USD 269.1 billion in Calendar Year (CY) 2024. This market is expected to grow at a CAGR of 9.9% to reach approximately USD 395.4 billion by CY 2028. In India, the export of precision-engineered goods is expected to reach USD 1,758 million by FY 2029, growing at a CAGR of 7.7%.

Crucially, the segment remains a high-growth market for Indian manufacturers as they position themselves as preferred hubs for global OEMs. This indicates massive potential in high-margin segments like aerospace and defense, the rising integration of IoT and Industry 4.0 in manufacturing, and the global push toward renewable energy components.

Within this intensely competitive environment, the industry is navigating challenges such as the potential impact of international trade tariffs, particularly from the USA, geographic concentration risks, and the continuous need for technological upgrades to maintain stringent global quality standards.

Industry Statistics are sourced from the Omnitech Engineering Limited Red Herring Prospectus (RHP) dated February 18, 2026.

Financial Overview of Omnitech Engineering IPO

Note: Figures for the period ended September 30, 2025, are for six months and are not annualised.

Revenue from operations has shown robust growth, driven by the expansion of its manufacturing capacities and a growing order book. Revenue increased from Rs 177.33 crore in FY23 to Rs 178.18 crore in FY24, then accelerated to Rs 342.91 crore in FY25, indicating healthy growth momentum. This continued into the latest half-year, with revenue reaching Rs 228.17 crore for the six months ending September 30, 2025.

In the EBITDA margin part, core business efficiency is seen through optimised manufacturing processes and high machine utilisation. The EBITDA margin stood at 35.78% in FY23, increased to 36.44% in FY24, and stood at 34.31% in FY25. For the latest six-month period ending September 30, 2025, the company reported an EBITDA margin of 30.72%, reflecting the impact of scaling activities and increased operational costs associated with new capacity.

Profit After Tax (PAT) has demonstrated a significant turnaround, reflecting the company's successful scale-up. PAT stood at Rs 32.29 crore in FY23, moderated to Rs 18.91 crore in FY24, and reached a high of Rs 43.87 crore in FY25. For the latest six-month period ending September 30, 2025, the company reported a PAT of Rs 27.78 crore.

The PAT margin highlights the company's bottom-line efficiency. The margin was healthy at 17.58% in FY23, shifting to 10.39% in FY24 before rebounding to 12.54% in FY25. For the six months ending September 30, 2025, the PAT margin stood at 11.74%, reflecting consistent operations despite ongoing investments. 

The Return on Equity (RoE) tracks the profitability relative to the average shareholders' equity. The RoE showed a unique trajectory due to the capital restructure, moving from 53.88% in FY23 to 21.55% in FY25.

The Return on Capital Employed (RoCE) further reinforces this efficiency, recording a robust 35.85% in FY23 and stabilising at 16.08% in FY25 as more capital was deployed for capacity expansion.

The net debt-to-equity ratio highlights the company's financial leverage and risk profile following its capital-intensive growth phases. As of March 31, 2025, the ratio stood at 1.60 times, shifting slightly to 1.65 times as of September 30, 2025. This demonstrates a strategic use of leverage to support expansion ahead of the Omnitech Engineering IPO date.

Financial figures are sourced from the Omnitech Engineering Limited Red Herring Prospectus (RHP) dated February 18, 2026 and are based on the period ending September 30, 2025.

Strengths and Risks of Omnitech Engineering IPO

Let's examine the strengths and weaknesses to determine if the Omnitech Engineering IPO is a good or bad investment for investors.

Strengths

• Strong Marquee Customer Base: Omnitech has built long-standing relationships with global energy and industrial leaders like SLB, Halliburton, and Suzlon, often acting as a preferred supplier for safety-critical parts.

• High Precision Technical Expertise: The company possesses specialized capabilities to manufacture components with 5-micron precision, supported by over 380 CNC machines and a dedicated product development team of 80 members.

• Strong Revenue Visibility: As of September 30, 2025, the company boasts a massive Order Book of Rs 1,764.78 crore, providing significant clarity on future revenue growth.

• Global Delivery Network: Leveraging its Houston-based warehouse, the company derived nearly 79% of its 6M FY26 revenue from international markets, demonstrating a successful global delivery model.

• Integrated Manufacturing setup: The presence of in-house special processes like plating and testing allows for faster turnaround times and better quality control compared to outsourced models.

Risks

• Customer Concentration Risk: The company derived 56.04% of its 6M FY26 revenue from its top 10 customers. The loss of any major customer could significantly impact financial performance.

• Significant Geographic Concentration: All manufacturing operations are located in Rajkot, Gujarat. Any localised disruption, natural calamity, or policy change in this region could halt production.

• Tariff and Trade Risks: A substantial portion of revenue comes from the USA. New tariffs or anti-outsourcing legislation in the USA, like the ad valorem rates implemented in August 2025, could adversely affect pricing.

• Indebtedness and Cash Flow Pressure: The company had total borrowings of Rs 382.91 crore as of September 30, 2025. Furthermore, it experienced negative operating cash flow in FY25 due to rapid expansion and high working capital needs.

• Implementation and Cost Escalation Risks: A significant portion of the machinery and construction required for the proposed expansion facilities is yet to be formally ordered. Any delay in finalizing these contracts or an increase in the cost of specialized equipment could result in time overruns and higher-than-expected capital expenditure.

Strategies of Omnitech Engineering IPO 

• Capitalizing on Precision Engineering Growth: Deepening presence across key end-user industries by leveraging global manufacturing shifts like China+1 and high quality-standards to onboard new marquee global OEMs.

• Expanding Geographical Reach: Strengthening the global delivery model by establishing new warehouses in Europe, the Middle East, and additional locations in North America to ensure faster, cost-effective localised delivery.

• Augmenting Capacity via New Facilities: Setting up two new manufacturing plants in Rajkot (Proposed Facilities 1 and 2) to significantly increase annualized machining capacity and meet the requirements of a rapidly growing order book.

• Inorganic Growth through Acquisitions: Exploring strategic joint ventures or acquisitions to improve manufacturing capabilities, access new high-growth end-markets like semiconductors and defense, and expand the global customer base.

• Further Improving Financial Profile: Utilizing IPO proceeds for debt repayment to reduce interest costs and improve the net debt-equity ratio, thereby enhancing the capacity to leverage internal accruals for future growth.

Omnitech Engineering IPO vs. Peers

Omnitech Engineering Limited reported revenue from operations of Rs 342.91 crore in FY25. While its total scale is currently smaller than established national leaders like Dynamatic Technologies and MTAR Technologies, its growth trajectory is significant, highlighted by a 92.45% YoY increase in revenue for FY25. Compared to smaller peers like Unimech Aerospace (Rs 267.69 Crore), Omnitech maintains a broader revenue base.

In terms of operating profitability, Omnitech’s performance is a standout. Its EBITDA margin (34.31% in FY25) is notably higher than that of MTAR Technologies (17.87%) and Dynamatic Technologies (11.28%), and remains competitive against Azad Engineering (35.27%). This efficiency is largely attributed to its specialized focus on high-margin, safety-critical components for the energy and automation sectors.

The Company also demonstrates superior capital efficiency. With a Return on Equity (RoE) of 21.46% in FY25, Omnitech significantly outperforms the entire peer group, including Unimech Aerospace (12.48%), MTAR Technologies (7.26%), and Azad Engineering (6.26%). This robust RoE indicates a highly efficient utilization of its equity base as it scales its global manufacturing operations.

Objectives of Omnitech Engineering IPO

The offering consists of a total book-built issue worth up to Rs 583 crore, which is comprised of a fresh issue of Rs 418 crore and an offer for sale (OFS) of Rs 165 crore.

Proceeds from the OFS will go to the selling shareholder (Udaykumar Arunkumar Parekh), and the company will not receive any portion of these funds.

The Rs 418 crore fresh issue proceeds will be used for:

• Setting up New Projects: Rs 233.56 crore for the construction and purchase of machinery for Proposed Facility 1 and Proposed Facility 2 in Rajkot.

• Debt Repayment: Rs 50 crore for repayment or prepayment of certain outstanding borrowings.

• Capex for Existing Facility 2: Rs 18.70 crore for solar panel installation and new handling equipment.

• General Corporate Purposes: The balance will be utilised for meeting the company's general corporate needs and strategic growth initiatives.

Omnitech Engineering IPO Details

IPO Dates

Omnitech Engineering IPO is expected to be open for subscription from February 25, 2026, to February 27, 2026. The allotment of shares to investors is expected to take place on March 2, 2026, and the company is expected to be listed on the NSE and BSE on March 5, 2026.

IPO Issue Price

Omnitech Engineering is offering its shares in the price band of Rs 216 to Rs 227 per share. This means you would require an investment of Rs. 14,982 per lot (66 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Omnitech Engineering is offering a total issue size of 2,56,82,818 shares, amounting to Rs 583 crore, out of which 1,84,14,096 shares are fresh issue valued at Rs 418 crores, which is set to be utilised in line with the company’s stated objectives. The remaining 72,68,722 shares are offer for sale, valued at Rs 165 crores, which will be received by the selling shareholders in this IPO.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on March 02, 2026, through the registrar's website, MUFG Intime India Private Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of Omnitech Engineering are expected to be listed on the NSE and BSE on March 05, 2026.

IPO Application Link

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