Engineering Stock Jumps 4% After PAT Surges 88% YoY

On Wednesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 35.75 points (0.15 per cent) to 24,435.95. Amid the market movement, OBSC Perfection Limited share price rose 3.92 per cent to Rs 789.95, gaining Rs 29.80, after the precision engineering company reported a strong set of Q1 FY27 numbers. The stock was up nearly 4 per cent even as the broader market traded in the red.

OBSC Perfection Q1 PAT Jumps 88 per cent YoY

OBSC Perfection reported total income of Rs 78.72 crore in Q1 FY27, up 84.7 per cent from Rs 42.66 crore in Q1 FY26. Operating EBITDA increased 85.2 per cent YoY to Rs 13.85 crore from Rs 7.48 crore. Operating EBITDA margin stood at 17.9 per cent. EBITDA, including other income, rose 84 per cent YoY to Rs 15.25 crore, compared with Rs 8.29 crore in the corresponding quarter last year. EBITDA margin stood at 19.4 per cent.

Profit after Tax increased 88.3 per cent YoY to Rs 9.47 crore from Rs 5.03 crore. PAT margin improved to 12 per cent from 11.8 per cent a year earlier. The company said Q1 FY27 marked its highest-ever total income, EBITDA and PAT.

Order Book Above Rs 1,200 Crore

The company's current order book stands at more than Rs 1,200 crore, providing visibility for its future execution pipeline.

During Q1 FY27, OBSC Perfection acquired an additional 2.4 acres of land at Supa, Maharashtra, taking its total land holding at the location to 10.8 acres. Ground-breaking is expected within three months. Construction at Sanand has reached the second phase, with completion expected over the next six months.

Export Contribution Hits Record High

Revenue from operations stood at Rs 77.31 crore in Q1 FY27. Domestic business generated Rs 57.50 crore and contributed 74.4 per cent of operating revenue. Exports contributed Rs 19.81 crore, taking their revenue share to a record 25.6 per cent, compared with 19.6 per cent in FY26.

The company also recorded its highest-ever non-automotive revenue share of 20.5 per cent during the quarter.

Automotive remained its largest segment, contributing Rs 61.48 crore, or 79.5 per cent of revenue. Marine revenue stood at Rs 10.81 crore and accounted for 14 per cent, while Defence contributed Rs 4.84 crore, or 6.3 per cent.

Defence Business Expands

During the quarter, OBSC Perfection onboarded two new Defence Public Sector Undertakings, taking its registration to three of India's seven DPSUs. It also received its first prototype orders for MK-84 bomb fins, case heads involving 0.5 million pieces and lifting plugs for 155 mm shells.

Stamping Business Starts Contributing Revenue

OBSC Perfection began generating revenue from its stamping business during Q1 FY27. The company is looking to move further up the value chain from machining and stamping towards assembly manufacturing. At Sanand, it also became part of the supply chain for Tenneco's Da Vinci DCx suspension system.

The company has additionally appointed an experienced business adviser in the US to explore opportunities in the oil and gas industry.
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Disclaimer: The article is for informational purposes only and not investment advice.