OBSC Perfection Ltd
The NSE SME listing most investors overlooked - and the story that unfolded in the 12 months that followed.
Company Profile
Listed on the NSE SME Platform in Oct-2024, OBSC Perfection is backed by the Omega Group (50 years in steel & manufacturing). It operates as a premier precision engineering company, supplying critical components to the automotive, defense, marine, and EV sectors.
From Zero to ₹145 Cr in Under a Decade
6 Plants • 7 Processes • 3 States
| 2017 | Incorporated; backed by Omega Group with 5 decades in steel & manufacturing. |
| 2018 | Unit 1 Pune CNC machining operations begin. |
| 2020 | ISO 9001 certification achieved; BEL Zero Defect Supplier Award - first major quality recognition. |
| 2021 | Unit 2 Pune added - investment casting process introduced. |
| 2022 | Revenue crosses ₹50 Cr; Unit 3 Chennai operational — first geographic expansion. |
| 2023 | Revenue approaches ₹100 Cr; defense & EV segments begin contributing. |
| 2024 | Unit 4 dedicated to Tata EV components; IPO on NSE SME raises ₹66 Cr. |
| 2025 | Unit 5 inaugurated (Apr) - hot & cold forging brought fully in-house. |
| 2026 | Sanand (Gujarat) & Supa (Maharashtra) land acquired; Unit 6 cold forging in Faridabad; preferential allotment at 3x IPO price; stamping orders begin. |
20+ Categories • 500+ Parts
Engineering partner, not just a vendor. Concept → Prototyping → Validation → Serial Production.
Sensor Bosses & Shock Absorber Rods
~30% of auto revenue
High-volume precision turned components for exhaust and suspension systems. Tight tolerances, repeat order cycles — a stable and predictable revenue base.
AlphaSeiki Clamping Solutions
Own brand - India / Export
Proprietary collets and guide bushes for Swiss turning machines under the 'AlphaSeiki' brand, validated on OBSC's own shop floor. Actively marketed to clients in Europe and the US.
Defense & Aerospace
₹133 Cr order book
Ammunition parts, missile sub-assemblies, artillery fuses. This category was negligible two years ago; today it anchors the company's re-rating story.
Other Precision Machined Parts
Diversified mix
Spline shafts, gear shifters, drive shafts, brass housings and more.
EV Battery Cooling Components
Sole-source status in India
Aluminium cooling plates for EV heat-sink assemblies - safety-critical, non-interchangeable parts. OBSC is the exclusive domestic supplier for a key OEM.
Compounding Revenue & Margins
Revenue Trajectory (₹ Cr)
| Period | Revenue (Audited) |
|---|---|
| FY22 | ₹56 Cr |
| FY23 | ₹95 Cr |
| FY24 | ₹115 Cr |
| FY25 | ₹142 Cr |
| TTM Revenue | ₹193 Cr |
Profitability Metrics
| Period | OPM % | PAT (₹ Cr) |
|---|---|---|
| FY22 | 13% | 4 Cr |
| FY23 | 10% | 5 Cr |
| FY24 | 18% | 12 Cr |
| FY25 | 18% | 17 Cr |
*Based on Q3 operational update. Announced 26th Mar'26 on retrospective basis due to exchange regulations as paid-up capital surpassed 25cr
From Pure-Play Auto to Multi-Vertical
| Vertical | Share (9M FY26) | Strategic Context |
|---|---|---|
| Automotive | 84% | Still dominant but share declining as new verticals scale. Core repeat-order business remains stable. |
| Marine | 6.7% | Recovered in H1 FY26 after years of decline. Order pipeline improving with new vessel programs. |
| Defense | 5.7% | From near-zero to ₹133 Cr order book. BEL relationship and quality certifications are the moat. |
| Others/Exports | 3.6% | AlphaSeiki brand + exports to EU/US. Fastest margin profile growing from a low base. |
6 Plants • 7 Processes • 3 States
The Plant Network
- Unit 1 - Pune (Owned): 165 L/yr capacity | 88.8% utilisation | Core machining hub.
- Unit 2 - Pune: Dual-mode: machining + casting | Casting 75% Util. | Machining 91% Util.
- Unit 3 - Chennai: Largest single footprint | South India OEM cluster access.
- Unit 4 - Pune (EV Dedicated): 15,000 sq ft | 76.7% utilisation | Entire capacity dedicated to EV cooling components.
- Unit 5 - Pune (Apr 2025): 44,000 sq ft | Hot forging 1,200 T/yr + cold forging 600 T/yr.
- Unit 6 - Faridabad (Cold Forging): Cold forging hub for North India OEM cluster; 6,000 T/yr capacity ordered.
7 Integrated Processes
- 01. CNC Machining & Turning: Core capability - bars of steel, brass, aluminium shaped into precise components.
- 02. Fabrication & Welding: TIG, MIG and laser welding; structural metal cutting and joining.
- 03. Investment Casting: Wax pattern → ceramic shell → molten pour net-shape output.
- 04. Forging (In-house, 2025): Hot & cold forging added. Superior grain and higher margin.
- 05. Stamping: Sheet metal formed to 3D profiles. First external order Mar 2026.
- 06. Surface Treatment: Phosphating & chromate coating for corrosion resistance.
- 07. Assembly & QC: Verified against engineering drawings at every stage.
Three Vectors, Three Timelines
01. Forging Unit 5
H2 FY26 - Delivering Now
- Hot forging 1,200 T/yr + cold forging 600 T/yr operational.
- Eliminates third-party forging costs -> direct margin uplift.
- P&L benefit flows from H2 FY26 onwards.
02. Sanand Plant (Gujarat)
Q4 FY27 - Phase 1 Start
- Land acquired March 2026 for ₹2.85 Cr.
- OEM nomination letter guarantees ₹49 Cr/yr offtake.
- Products: machine pistons & shock absorbers.
- Gujarat = hub of India's EV manufacturing belt.
03. Integrated Gigafactory
2-3 Year Vision
- Land secured at Supa, Ahmednagar (Maharashtra) ~8.4 acres.
- Goal: consolidate all rental facilities + 7 processes under one roof.
- Removes 5 separate plant overheads + inter-plant logistics.
Management Targets (3-4 Year Horizon)
22-23%
EBITDA Margin
50% CAGR
Export Growth
70/25/5%
Auto / Defense+Aero / Others
₹300 Cr+
Forging Rev Potential
Valuation Re-Rating Cycle
IPO to Peak to Now (Oct 2024 - Mar 2026) · P/E Multiple (TTM PAT basis)
The Multiples Journey
- Oct 2024 (17x): IPO. Priced as a standard auto ancillary; defence pivot unknown.
- Nov 2024 (24x): Order book narrative gains traction at ₹360 Cr+.
- May 2025 (38x): FY25 results. Revenue +25%; margins expand; defence revenue accelerates.
- Jun 2025 (44x): Forging unit opens; exports surge; orders hit ₹723 Cr.
- Nov 2025 Peak (44x+): Orders ₹1,242 Cr; market cap ₹786 Cr; all 3 engines firing.
- Mar 2026 Now (~30x): Broad market correction; TTM PAT ~₹23 Cr.
What Could Break the Thesis
1. Customer Concentration (HIGH)
Top 10 clients account for 57-65% of revenue. The single largest OEM relationship anchors ₹250 Cr of orders — a deep strategic tie, but also a concentration point to monitor.
2. Simultaneous Expansion Risk (HIGH)
Gujarat plant + forging ramp-up + Gigafactory = three concurrent build-outs on a ₹142 Cr (FY25) revenue base. Delays or cost overruns will pressure free cash flow.
3. Order Book Conversion Risk (MEDIUM)
₹1,200 Cr order book assumes successful ramp of forging, stamping and Gujarat plant. Any execution slip - tooling delays, vendor qualification, or OEM program changes — can defer revenue recognition.
4. Geographic Concentration (MEDIUM)
Four of five plants are located in Pune. A single disruptive event — flood, labour action, or regulatory closure — could halt roughly 80% of output.
5. Working Capital Stretch (MEDIUM)
Defense and export clients operate on longer payment cycles versus domestic OEMs. As their revenue share grows, the cash conversion cycle will lengthen.
Opportunity vs. Risk in One View
Strengths & Opportunities
- Revenue CAGR 36.8% alongside PAT CAGR of 67% — rare combination.
- Sole-source EV cooling supplier for key OEM - structural moat; non-interchangeable parts.
- Defense order book at ₹133 Cr - built from zero in under two years.
- Forging in-house from Apr 2025 - direct, near-term margin benefit.
- Gujarat: ₹2.85 Cr land commitment → ₹49 Cr/yr guaranteed revenue.
- China+1 supply-chain shift creating real export pull from US & Europe.
- Order book grew from ₹290 Cr to ₹1,200+ Cr within a single fiscal year.
Risks & Watch-Points
- ✕ Largest OEM = ₹250 Cr of orders - meaningful single-client concentration.
- ✕ Three expansion projects running simultaneously on a ₹142 Cr base.
- ✕ 80% of production capacity sits in Pune — geographic concentration risk.
- ✕ Order book conversion depends on simultaneous ramp of forging, stamping & Gujarat plant.
- ✕ Defense & export mix shift will extend cash conversion cycles.
- ✕ Track record is strong, but any guidance miss risks a sharp re-rating down.
IMPORTANT DISCLAIMER
For Informational Purposes Only · Not Investment Advice
This presentation has been prepared solely for informational and educational purposes. It does not constitute personalised investment advice or a recommendation to buy, sell, or hold any security. All financial figures, order book data, and operational metrics cited herein are sourced from publicly available company filings, IPO documents, and stock exchange disclosures. Past revenue growth or stock price performance is not a guarantee of future results. Readers are strongly advised to conduct independent due diligence and consult a SEBI-registered investment advisor before making any investment decision. The preparer of this document may or may not hold positions in the securities discussed. All information should be independently verified prior to acting upon it.
Data Sources: OBSC Perfection Ltd IPO Prospectus · NSE SME Exchange Filings · Company Investor Presentations · Screener.in · Public Disclosures
RESEARCH & ANALYSIS