OBSC Perfection LtdQ1 FY25Auto Components

OBSC Perfection Ltd

Q1 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 1

Margin

Category 1

Fundraise

N/A

Order

Yes

Capex

Yes

4 of 4 growth signals are positive — a strong management growth story.

Revenue guidance

Category 1

→FY26 automotive revenue expected to be ~80-85% of total, with 25% from EVs and 60% from non-EV vehicles.
→Non-automotive sectors (defense, marine, aerospace) projected to grow rapidly, expecting 35% revenue share in 2-3 years, with defense and marine growing at 45-50% CAGR.
→Order book as of FY25 is Rs.722-725 crores, significantly up from Rs.290 crores in FY24, indicating strong upcoming revenue.
→Defense order book of Rs.130 crores extends over 10 years with monthly revenue run rate ~Rs.1 crore.
→Capacity expansions (new plants in Pune and Gujarat) will support revenue growth; with installed capacity enabling Rs.200+ crores revenue currently and further CAPEX in pipeline.
→Expectation of over 40% growth in FY26 based on new orders, product segments, and customer additions (e.g., Tata AutoComp becoming a major customer).
→Shift from ~98-99% automotive two years ago to expected ~65% automotive by FY28, highlighting diversification and volume growth in non-automotive sectors.

Category 1

→OBSC Perfection expects over 40% growth in revenue for FY26 driven by automotive and non-automotive expansion.
→EBITDA margin target is to improve by 2% in FY26, with a medium-term aspiration of 4-5% margin expansion over 3-4 years.
→Defense and marine segments are expected to grow at 40-50% CAGR, contributing to higher margin and revenue mix diversification.
→Order book of Rs.700+ crores provides strong revenue visibility for 6-7 years.
→ROE is expected to recover to around 40% in 2-3 years after IPO-related equity dilution.
→New facilities and CAPEX in forging and machining are expected to enhance operating leverage and profitability.
→Enhanced in-house R&D and process expansions will contribute to margin improvement and faster customer onboarding.
→Overall, strategic diversification into defense, marine, and EV sectors is expected to drive earnings and EPS growth sustainably.

Get access to all 5 sections — revenue, margin, fundraise, orderbook, and capex — for OBSC Perfection Ltd and 1,400+ other companies.

→As of the latest update, OBSC Perfection has Rs.20 crores of unutilized IPO proceeds lying in their bank accounts.
→These funds are planned to be utilized for CAPEX in existing and new facilities during the current financial year.
→There is no mention of any new fundraising through equity or debt in the transcript.
→The company is focused on using existing resources and CAPEX plans to support growth, including expansion of machining and forging capabilities.
→No explicit plans for additional debt or equity fundraising were disclosed during the call.

Yes

→Current confirmed order book stands at approximately Rs. 723-725 crores as of FY25.
→In FY24, the order book was around Rs. 290 crores.
→There is an extended defense order book of Rs. 130 crores spanning 10 years (~Rs. 13 crores revenue per year).
→The rest of the order book (excluding defense) is expected to be executed over the next 5 years.
→Overall, the order book represents new projects/orders above and beyond current revenues.
→A nomination-based order book totaling about Rs. 750 crores is treated as confirmed due to binding nomination letters with customers.
→Additional pipeline RFQs and validation parts, especially in defense and overseas markets like Israel, indicate potential large future orders.
→The company expects strong order wins contributing to over 40% growth in FY26.

Yes

→A new forging facility has been opened in Pune in April 2025, with machine lines ordered and expected to be operational in the next three months.
→Rs.20 crores of IPO proceeds remain unutilized; Rs.15 crores allocated for CAPEX at the third facility in Chennai and Rs.5 crores for the fourth facility in Pune.
→Additional CAPEX of Rs.20 crores allocated, with further CAPEX planned for forging, which has high asset turnover and lower machinery requirement compared to machining.
→New machining capacity of approximately Rs.200+ crores revenue potential with current and upcoming infrastructure.
→Expansion plans include a dedicated plant for shock absorber rods in Sanand for commercial and electric vehicles.
→Long-term vision to consolidate plants into a single integrated "giga factory" with multiple processes in-house on 5-6 acres.
→In-house R&D investments and new software/tools aim to reduce costs, improve turnaround, and support capacity and product expansion.

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