OBSC Perfection Ltd - Perfection Not Just in Name, but in Business DNA

About

  • Established in 2017, OBSC Perfection is a manufacturer of precision engineered metal products
  • Part of the machining industry, with a key focus on the auto sector
  • Not a direct OEM supplier but a Tier II/III one
  • It operates in four industries: auto (91%), defence (4%), marine (4%), telecom & renewables
  • Part of the 55+ years old Anglian Omega Group which has presence in Bright Bar Steel, Electric Mobility & Auto Components Industries

Products

  • Manufactures small products where Precision and quality
  • Product portfolio spanning over 26 products (encompassing over 500 individual part numbers.)
  • Top 3 categories by revenue:
    o Sensor Boss – Precision turned parts used in exhaust systems; exported to Europe, the US,
    and used by Indian truck/passenger vehicle OEMs.
    o Shock Absorber Rods – OBSC is among the largest shock absorber rod manufacturers in India;
    strong client base among top OEMs.
    o Defense Parts – Includes ammunition and artillery fuze components, forming a growing third
    category.
    o The top 2 SKUs (Sensor Boss and Shock Absorber Rods) contribute approximately 40% of
    OBSC’s automotive revenue.


Customers

  • Top three customers as of May 2025 are: ZF Group (German €50 billion MNC), Tenneco Inc (American OEM manufacturing exhaust systems, suspension products, etc.), JTEKT (JTKT) (sparing system manufacturer)

Growth Strategy:

• Value Chain Up-Move : Addition of Hot and Cold Forging capability to move up the value chain; enabling them to make complex and larger parts
• New Industries: Strong focus on defense, marine and renewables. Under active discussions with multiple potential customers within these industries
• Exports: Increasing exports revenue exponentially; targeting to maintain 50%+ CAGR over next 3-4 years
• Advanced Machineries: Continue to invest in high-end machineries enabling to meet high level of quality to serve global MNC

Order book
Highest ever Order wins (~4,380 mn) in a 6-months period- H2FY25
Order book more than doubled during the FY25
Execution Timeline:

Industry Diversification

• Historically served Automotive Sector; rapidly expanding in Non Automotive such as Defense, Marine, Renewables sector
• Increasing order flow from non-automotive; contributing 54% of new orders received in last 6 months
• FY26 Revenue Split (Guidance):
o Automotive: ~80–85%
:black_small_square: EVs: ~25%
:black_small_square: Non-EVs: ~60%
o Defense & Marine: ~13–14%
o Others: ~3–4%

• Shift towards non-automotive expected to accelerate over 3-5 years
• Over the next two to three years, automotive revenue is expected to be around 65%, with non-automotive contributing 35%.
• Defense and marine are foreseen to grow at a CAGR of at least 45% to 50%. This could jump much faster if pipeline discussions convert into real orders.

Automotive:
• Order Book: 467cr + 97.5 cr = 565 cr
• For a particular Tata AutoComp (TACO - a significant supplier to Tesla ), OBSC Perfection is the single source supplier from India for parts being developed for the first time in India. Tata AutoComp is expected to become one of the largest customers very soon

Marine:
• Order book: 60 cr
• Actively in talks with multiple US-based marine component manufacturers.

Marine:
• Order book: 60 cr
• Actively in talks with multiple US-based marine component manufacturers.
• These companies are looking to outsource patented production processes to India due to Tariff-driven
supply chain realignments between US and China and Need for a trustworthy and proven Indian partner
• OBSC is at an advanced negotiation and relationship-building stage with these clients

Aerospace
• For the aerospace sector, the company recently started the AS9100D certification, which is required to enter this sector
• Parts under development and validation; no confirmed orders yet, but RFQs received and expressions of interest are high.

Defense
• Order book: 133 cr
• They are manufacturing some Defence products for PSUs in India and some are of Israeli origins
• Revenue from defense segment up from ₹0.28 crore in FY24 to ₹5.55 crore in FY25
• Defense order book: ₹130 crores (10-year horizon). Implies ~₹13 crores/year revenue visibility from defense
• The Defence segment is expected to grow significantly, potentially at a CAGR of at least 45%-50%
• Defense segment to drive margin expansion and profitability

Capacity / Capex:
• It has five plants, four in Pune and one in Chennai. A plant is coming up in Gujarat.
• In-house manufacturing capabilities across machining, turning, investment casting, fabrication
• OBSC identifies itself as a precision engineering company. Now within that broad spectrum of precision engineering, they have different processes like CNC machining (which includes Swiss machining, grinding), Investment casting, Cold & Hot Forging
• ₹20 crores of unutilized IPO funds remain: ₹15 crores earmarked for CAPEX in third facility (Chennai) & ₹5 crores for Unit -4 in Pune. Utilization timeline: Majority in H1 FY26, balance in H2 FY26.
• 3 out of 5 plants operating at 80-90% machine utilization
• The Chennai plant (third facility) and the Pune plant (fourth facility) are yet to come to full capacity.
• There is space to add new machines, and teams are ready for expansion. Future growth will see massive revenue coming from these plants.
• Value Chain Up-move with Forging Capability:
o Addition of Hot and Cold Forging capability to move up the value chain; enabling them to
make complex and larger parts
o 5th Facility being commenced in Pune – this plant will bring our in-house forging capability
o Status:
:black_small_square: Facility inaugurated in Apr’25
:black_small_square: Hot and Cold Forging press machines have been ordered
:black_small_square: Expect to be operational in 3 months – Mid August 2025
:black_small_square: Eventually, this facility will have both Machining & Forging under a single roof
:black_small_square: Expected to convert into revenue from the end of the second half of FY26

• A dedicated facility in Sanand, Gujarat is being planned for a long-standing customer to produce shock absorber rods for commercial vehicles and electric vehicles. A confirmed letter of intent has been received, and the project will be worked on over the next six months. This planned Gujarat facility is not included in the current Rs. 700+ crores order book.

• The company plans to get into stamping and sub-assemblies very soon. The goal is to become a company that owns multiple processes and can make any metal part in the long-term

Outlook
• The management expects margin tailwinds from growth in the ASP and change in the export mix. It is targeting a margin expansion of more than 400bp in the medium term
• Focus is on higher profitable sectors of defence & increase in export mix (defence/exports:
~INR133cr/~INR181cr)
• In terms of capacity, with the current installed capacity, the company expects revenue to grow to around Rs. 200+ crores in FY26
• Company expects >40% revenue growth in FY26
• The company expects margin expansion. Immediate target is to improve EBITDA margins by at least 200 basis points for FY26

13 Likes

Please add risk factors and the disclosures to your post, that would help the community. Thanks

1 Like

Thanks for detailed post on OBSC Perfection.

I had few questions would love your thought on

  • Order book - how come company has such growth in ordered book (nomination letters-based order book) any pointer how to study it? Is it only its group company relation driving or something else is driving it?
  • Marine Components - you mentioned 60 cr order book, could you share pointer to source just to study bit more
  • Yashdeep Automotive - is also a subsidiaries of Anglian Omega Group which works in components for the automotive sector, if I am not wrong they too work in Defense and marine components Any idea how group will treat future business – will it move more to its privet subsidiaries or to public listed OBSC?
2 Likes
  1. The order book consists of nomination letters, which are considered binding documents. The company makes investments based on these nominations, and customers are liable to cover losses if the parts are not picked up with serious deviation from the nomination. The company views these as confirmed orders

Also there is no major related party transaction except for the purchase of carbon steel purchase from the group company and they even didnt mention group coas their customer in their ppt:

Top three customers are : ZF Group (German €50 billion MNC), Tenneco Inc (American OEM manufacturing exhaust systems, suspension products, etc.), JTEKT (JTKT) (sparing system manufacturer)
Latest order received from:
Tenneco Automotive Operating Company : 160 cr
Tenneco Automotive Operating Company : 97.5 cr

  1. the 60 cr order was mentioned in their order book mix, i have already shared the snippet of the same

  2. Yashdeep focuses on manufacturing high-quality machine components for engines, power-trains, and safety parts for clutch assemblies, supplying to leading automotive OEMs, including a prominent Japanese clutch manufacturer.
    I am not able to find out about their work in defense & marine components. Will be helpful if you can share the source of that.

2 Likes

Thanks for replay, appreciate your time.

I understand Order book is based on nomination letters and customer can cancel by paying out the cost (or not based on contract). I am trying to understand why Order book/nomination letters growing is such fast rate post DRHP, is this something industry phenomena or company doing to enjoy this phenomenal growth in the order book.

Thanks for pointing out the marine order book reference in its PPT. I am looking for more detail on the order book of marine as its revenue from marine division is keep reducing but I could not find any reference to provide any pointer what is happening. In case there is some pointers please do let me know. (Please note that I tried to try to find relation of marine revenue order book in FY25 and FY26Q1 info but no luck)

As per DRHP “We have not entered into any non-compete agreements with such our Promoters or promoter group entities”

Please note that official website has no much information. This [link](https://www.indiamart. com/yashdeep/profile.html) has listed “Indian Defence, Kolkata” as its clientele. Just wondering do Yashdeep Automotive has any overlap.

2 Likes

This is the correct website