Delta Investment Advisors

Omnitech engineering Ltd

Omnitech Engineering is a B2B manufacturer specializing in high precision components for safety-critical applications across the energy, automation, and industrial sectors. It serves over 256 customers across 24 countries. The company’s products support critical functions like drilling, exploration, and motion control for marquee clients such as Halliburton, Schlumberger (slb), Weatherford, Suzlon, among others.

DRHP filed: 23rd June 2025

BRLM: Equirus Capital, ICICI Securities

Auditor: Dhirubhai Shah & Co LLP

Disclaimer - Delta Partners (public market division under Dexter Capital) is not a SEBI registered Investment Advisor and this report does not constitute a recommendation but is only prepared for educational purposes. We (our team members including our directors) may or may not apply to IPO.

This note is not reviewed by our CIO - Devendra Agrawal, CFA. It is prepared by our team of Investment Analysts, and is reviewed by our senior team members. Any questions related to the IPO can be directed to shubham@deltainvest.in and we will come back.

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Delta’s View : Track

Omnitech is a B2B precision components manufacturer with applications in energy, automation & industrial sectors serving 256 customers present in 24 countries. Its revenue almost doubled in FY25 and the order book has multiplied to 1,765 cr (as Sept 2025), which is more than 5x times its FY25 revenue. Its repeat revenue averaging over 86% and the marquee customer base of OEMs provide further confidence in the business. The company maintains an operating margin of ~36% (3 yr average) placing it in the upper end among the peer group. It plans to utilize a 380 cr fresh issue primarily towards developing 2 new facilities in Rajkot. The company's IPO ask valuation of 56.5x P/E (TTM) or 7x P/S (TTM) appears rich at this point, therefore we would track the company post listing.

One may expect listing to be flat or even negative as per current GMP 0%, provided the GMP sustains.

The company started as a partnership firm in 2006 by 4 partners, which got converted into a pvt ltd company in 2021 with Udaykumar Arunkumar Parekh taking the ownership/control. The promoter Udaykumar Parekh owns 93% of shareholding and 1% is held by his mother & wife as per RHP date. Promoter Udaykumar will retain ~73% of shareholding post IPO.

The company's order book has grown multi-fold over the last few years. Total order book was just ~58 cr in FY23 and surged to 284 cr (FY25) and 1,765 cr (6M FY26). The increase was led by Energy customers (Oil & gas exploration and field-service companies). Energy order book increased from just 10.5 cr (FY23) to 1,307 cr (6M FY26).
Omnitech engineering have customers diversified across sectors - Energy (42%), Motion Control and Automation (36%), Industrial Equipment Systems (20%), and Others (2%), selling to over 256 customers across 24 countries which includes Schlumberger (slb), Weatherford, Halliburton Energy Services, Inc., Lufkin, Boart Longyear, Suzlon, Oilgear, and Donaldson Filtration Solutions. Its revenue concentration to top 10 customers declined to 48% in FY25.
Omnitech has maintained its operating margins strong at ~36% (3 yr average) which is much higher than peers MTAR Technologies (21%), PTC Industries (26%) & Dynamatic technologies (12%). Although its operating margin is in line with Azad engineering (33%) & Unimech aerospace (38%).
Its revenue from repeat customers has been strong at 96% in 6M FY26 and averaged over 86% for FY23 to FY25. The company has expanded to new customers by acquiring 171 customers between April 2022 to Sept 2025.
The company has invested over 306 cr into capex since FY23 which has helped expand its annualized machining capacity from 918,060 machining hours to 2,429,856 machining hours and annualized fabrication capacity of 7,200 MTPA as at September 30, 2025. It has planned a Capex of 252 cr to be funded from IPO proceeds towards development of two new manufacturing plants in Rajkot, Gujarat and enhancements at an existing facility. Once these new projects are commissioned, the company’s total annualized machining capacity is expected to reach 3,301,584 machine hours.

Business

Omnitech is a leading B2B manufacturer specializing in high precision engineered components and assemblies supplying to global OEMs across industries such as energy, motion control & automation, industrial equipment systems, metal forming and other diversified industrial applications.
The company serves 4 diversified segments with revenue share (as per H1 FY26) : Energy (51%), used in oil and gas drilling, exploration, and renewable energy pumping units; (ii) Motion Control and Automation (27%), for electro-mechanical systems in drives, motors, and robotic handling; (iii) Industrial Equipment Systems (19%), utilized in aerospace ground support and mining rigs; and (iv) Others (4%)
Omnitech maintains relationships with over 256 customers across 24 countries, including major markets like the USA, UAE, and Germany. Marquee customers include industry giants such as Schlumberger (slb), Weatherford, Halliburton Energy Services, Lufkin, Boart Longyear, Suzlon, and Donaldson. In H1 FY2026, North America contributed 60% of revenue, followed by Asia (excluding India) at 18% and India at 17%.
All operations are located across 3 manufacturing facilities in Rajkot, Gujarat, spanning 80,000+ square meters. As of September 30, 2025, the company had an annualized machining capacity of 2,429,856 hours (73% utilization) and an annualized fabrication capacity of 7,200 MTPA (20% utilization at Facility 3). The facilities are equipped with 383 CNC machines, 5 grinding machines, 4 gear machines, and 1 gun-drill/honing machine.
The company follows an end-to-end manufacturing process:
Request for Quote (RFQ) and order receipt → Process Engineering (stepwise instructions and ballooning) → Raw Material Purchase & Testing (including Incoming Quality Checks - IQC) → Manufacturing Operation (Machining via VMC/TMC) → Special Process (in-house plating/coating/welding) → In-Process QC → Assembly & Testing (mechanical/electrical) → Final Quality Control → Shipment & Logistics (Dispatch)

Issue Details

Fresh issue size - Amount → 418 cr ; To be utilized in -

Setting up New Projects at Proposed Facility 1 and 2 → 234 cr
Repayment or pre-payment of certain borrowings → 50 cr
Capital expenditure at Existing Facility 2 → 19 cr
General Corporate Purposes & Others

Offer For Sale size - Amount → 165 cr ;

The company’s promoter Udaykumar Arunkumar Parekh will sell 7% of his pre-IPO shareholding, resulting in post-IPO stake of 73%.

Promoters and Leadership

The company started as a partnership firm in 2006 by 4 partners, which got converted into a pvt ltd company in 2021 with Udaykumar Arunkumar Parekh taking the ownership/control.

The promoter Udaykumar Parekh owns 93% of shareholding and 1% is held by his mother & wife as per RHP date. Promoter Udaykumar will retain ~73% of shareholding post IPO.

Financials