About OBSC Perfection
OBSC Perfection makes precision metal components across more than 20 product categories and 500+ part numbers. Its products include automotive sensor bosses and shock absorber rods, defense and aerospace components, EV cooling plates and heat sinks, and other machined metal parts. Manufacturing spans machining, investment casting, forging, stamping, fabrication, surface treatment and assembly. The company operates five manufacturing units: four in Pune and one in Chennai.
Investment Rationale
- Forging brought in-house: The Pune forging unit adds hot- and cold-forging capability; the report says this can bring previously outsourced defense parts into end-to-end production. Planned capacity is 1,200T hot and 600T cold.
- EV component nomination: The report cites an INR 250 Cr Tata AutoComp order for aluminum cold plates used in EV cooling systems, and describes OBSC as the single source in India for these components. Unit IV is dedicated to the Tata EV line.
- Defense orders and pipeline: Defense revenue was INR 0.28 Cr in FY24, INR 5.55 Cr in FY25 and INR 5.46 Cr in H1 FY26. The company has BEL orders for ammunition and artillery fuze components; the report cites a confirmed 10-year defense order book and seven companies under active RFQ.
- Order-book growth: The order book increased from INR 290 Cr in FY24 to INR 1,242 Cr as of September 2025. The report says the Sanand nomination adds INR 49 Cr/year from Q4 FY27.
- Exports and customer demand: Exports accounted for 20.2% of revenue in H1FY26. Management targets 50%+ export CAGR over 3-4 years, while the note describes new order inflows from US customers following China tariff escalation.
OBSC Perfection Key Financials
| Metric | FY22 | FY23 | FY24 | FY25 | H1 FY26 |
|---|---|---|---|---|---|
| Revenue (INR Cr) | 56.7 | 96.9 | 116.1 | 145.2 | 90.3 |
| EBITDA (INR Cr) | 7.3 | 10.3 | 21.8 | 27.8 | 17.7 |
| EBITDA Margin | 12.8% | 10.6% | 18.8% | 19.1% | 19.5% |
| PAT (INR Cr) | 3.6 | 4.6 | 12.2 | 16.8 | 10.5 |
Revenue, EBITDA and PAT increased between FY22 and FY25; the reported EBITDA margin was 19.5% in H1 FY26.
Order Book and Expansion
| Segment | Share | Order book |
|---|---|---|
| Auto (Non-EV) | 51.7% | 642 Cr |
| Auto (EV) | 27.7% | 344 Cr |
| Defense | 10.7% | 133 Cr |
| Marine | 4.8% | 60 Cr |
| Renewables | 3.1% | 39 Cr |
| Agriculture | 1.6% | 20 Cr |
| Infra+Rail | 0.2% | 3 Cr |
Total order book: INR 1,242 Cr. The report also gives automotive as 79% | INR 986 Cr and non-auto as 21% | INR 256 Cr.
- Sanand facility: Land of 3,959 sq. mtr. was purchased for INR 2.85 Cr in March 2026. Phase 1 operations are planned for Q4 FY27, with annual production offtake of INR 49 Cr for machined piston and shock absorber rods.
- Pune forging unit: The unit was inaugurated in April 2025. The report anticipates revenue generation from H2 FY26 onwards and says it is expected to be fully operational in FY27.
- Longer-term consolidation: The company is securing 5-6 acres for a proposed integrated manufacturing site over a 2-3 year horizon.
Competitive Position
The report highlights OBSC’s EV cold-plate supply relationship and in-house manufacturing capabilities. It also notes that promoter entity Omega Bright Steel & Components supplies 31-52% of raw materials, which the report says can lower inventory and logistics requirements but also creates a related-party risk.
Management Guidance
- Revenue mix: The 2-3 year vision shows 70% automotive, 25% defense/aerospace/marine and 5% other, including renewables and telecom.
- Margins: Management guidance shows +2% pts EBITDA margin expansion for FY26E and +4-5% pts structural EBITDA expansion over 3-4 years.
- Exports and non-auto business: Targets include 50%+ export revenue CAGR over the next 3-4 years and a 35%+ non-auto share of revenue in 2-3 years, from 18%.
Industry Tailwinds
- Automotive: The report cites industry turnover growth of 9.8% in FY24 to $74.1B and a target of $200B by 2026. It notes OBSC’s OEM-direct positioning.
- EV transition: The note links EV adoption to demand for complex aluminum cold plates for cooling systems, which it describes as a niche product category with few Indian suppliers at scale.
- Defense indigenisation: The report points to domestic procurement initiatives and OBSC’s BEL relationships and validated components.
- China+1 exports: The note describes US OEMs seeking Indian precision component partners after tariff escalation with China and cites OBSC’s export share of 20.2% in H1FY26.
- Marine and renewables: The report describes marine customers for cable end fittings and steering components, and identifies wind-turbine shafts and solar-tracker components in the product portfolio.
Valuation
The note does not provide a target price or recommendation. It flags a valuation premium, citing 37-40x PE and 7x PB against an INR 717 Cr market cap and INR 145 Cr revenue, and warns that order-book conversion expectations are reflected in the valuation.
Key Risks
- Customer concentration: The top 10 customers represented 57-65% of revenue in FY22-24. The report says revocation of a single nomination could materially affect financials.
- Expansion execution: Sanand, forging and the giga-factory involve three simultaneous expansions. Delays, cost overruns or underutilisation could drain FCF; imported forging machinery adds installation risk.
- Related-party raw material supply: Omega Bright Steel supplies 31-52% of raw materials. The note flags governance concerns and limits on verifying arms-length pricing.
- Geographic concentration: All manufacturing is in Pune and Chennai. The report says disruption at Pune could halt 80%+ of production.
- Working capital and valuation: Growth may increase debtors and inventory, while defense and export receivable cycles are longer than domestic auto. The report also warns that a guidance miss at the stated valuation could lead to a sharp correction.
Our View
The note’s thesis rests on OBSC’s expanding order book, EV component nomination, defense opportunity and planned vertical integration. It also asks investors to watch execution, customer and geographic concentration, working capital, related-party supply and valuation. No formal rating or target price is stated.