OM Infra FY26 results: margins recover as order book stays steady

OM Infra Limited closed FY26 with a sharper focus on execution and cash discipline after a year shaped by payment delays in Jal Jeevan Mission projects. On a consolidated basis, revenue came in at Rs 500 crore, with EBITDA of Rs 28 crore and PAT of Rs 21 crore for the full year. The quarter showed a clear operational turn. Q4FY26 revenue was Rs 160 crore and EBITDA moved to a positive Rs 16 crore from a loss of Rs 16 crore in Q4FY25, while PBT rose to Rs 15 crore from a loss of Rs 6 crore.

The year did not look clean on revenue, which declined from Rs 713 crore in FY25 to Rs 500 crore in FY26. But the mix of outcomes is important. Costs were tightened and finance costs continued to trend down. Management commentary links the revenue softness primarily to delayed payments in Jal Jeevan Mission projects, where contractors were awaiting dues for over nine months. OM Infra maintained progress on sites despite the funding constraints, and expects pending payment issues to be progressively resolved, with funds expected to be released progressively in Q1FY27 under a revival plan worth Rs 27,000 crore in Uttar Pradesh and Rajasthan.

By the end of FY26, the company’s investment case rests on three pillars that run through the presentation: a long operating history in hydro and water infrastructure, a large and skewed order book tied to government water programs, and an effort to unlock cash from non core assets and arbitration awards to support working capital and growth.

Q4 showed operating improvement, FY26 showed margin resilience

The consolidated quarterly numbers show a clear sequential improvement. Net sales rose 43 percent quarter on quarter to Rs 160 crore in Q4FY26 from Rs 112 crore in Q3FY26, while EBITDA climbed to Rs 16 crore from Rs 7 crore. EBITDA margin improved to 10 percent in Q4FY26 from 6 percent in Q3FY26, a meaningful move for an EPC business where cost overruns and payment cycles can quickly compress margins.

For the full year, consolidated EBITDA improved to Rs 28 crore from Rs 20 crore in FY25, even as revenue fell. EBITDA margin expanded to 6 percent from 3 percent. This mix suggests the company executed with tighter cost control and benefited from lower finance costs, which declined to Rs 19 crore in FY26 from Rs 22 crore in FY25. Depreciation also reduced to Rs 5 crore from Rs 6 crore.

PAT, however, declined from Rs 36 crore to Rs 21 crore and PAT margin softened to 4 percent from 5 percent. Other income halved to Rs 18 crore from Rs 36 crore, which likely reduced the cushion that supported net profit in the prior year.

Standalone results tell a slightly different story. FY26 standalone revenue was Rs 468 crore versus Rs 666 crore in FY25, while standalone EBITDA was Rs 47 crore versus Rs 65 crore. In Q4FY26 standalone, EBITDA rose to Rs 18 crore from Rs 1 crore in Q4FY25, showing that the quarter’s recovery was broad based.

Order book and execution visibility: JJM dominates, hydro provides balance

OM Infra’s outstanding order book stood at Rs 2,107 crore as of 31 March 2026. The order book split explains where execution and cash flows are expected to come from.

Jal Jeevan Mission accounts for Rs 1,351 crore, about 60 percent of the total, while hydro and water projects outside JJM contribute Rs 756 crore. The company also reported a book to bill ratio of 4.21 times on a FY26 TTM basis, indicating multiple years of execution visibility relative to current revenue.

The order flow bridge shows why the order book stayed stable despite low inflows in FY26. Opening order book was Rs 2,361 crore, order inflow in FY26 was Rs 129 crore, and order executed in FY26 was Rs 383 crore, resulting in a closing order book of Rs 2,107 crore. The company notes adjustments for scope and escalation.

In the unexecuted list, Jal Jeevan Mission projects dominate the near term pipeline. The presentation discloses total unexecuted value of Rs 1,350.56 crore across JJM work, including projects in Uttar Pradesh and Rajasthan, some with O&M components. The hydro mechanical and other water based infrastructure component totals Rs 756.05 crore and includes projects such as KWAR Hydropower in J&K, Shapurkandi Power Project in Punjab, and the Kundah pumped storage project in Tamil Nadu.

A new order win in FY26 includes a Rs 129 crore project in Shahjahanpur, Uttar Pradesh, awarded by Uttar Pradesh Jal Nigam (Urban). The scope includes surveying, design, construction and repair of water infrastructure, rising mains, distribution systems, house connections, tube wells, and PLS SCADA automation for tube wells. The disclosure matters because it highlights the company’s role in end to end water EPC with automation, not just conventional civil and piping.

The order book also has exposure to resumed hydro mechanical work. The company is undertaking the hydro mechanical portion of the Tapovan project valued at Rs 48 crore. This is described as a resumed project, which can carry both opportunity and execution risk, depending on site readiness and payment schedules.

Policy tailwinds meet working capital reality

The presentation makes a clear case that OM Infra’s addressable market is expanding. The Union Budget water sector outlay is stated at over Rs 84,000 crore, including Rs 67,670 crore for Jal Jeevan Mission, Rs 8,000 crore for AMRUT 2.0, Rs 5,226 crore for river interlinking and irrigation, and Rs 3,100 crore for the National Ganga Plan. Alongside this, infrastructure outlay is shown rising to Rs 12.2 lakh crore and an Infrastructure Risk Guarantee Fund is introduced to provide partial credit guarantees for construction risks.

But management’s commentary is equally direct about execution constraints. The year’s performance was impacted by delayed payments in Jal Jeevan Mission projects, with contractors awaiting dues for over nine months. OM Infra continued with project progress despite state fund constraints and early expense booking. The near term expectation is that payment issues related to JJM projects are progressively being resolved, with receipt of dues expected in the near term.

This matters for how investors should read the FY26 revenue decline. In EPC, revenue recognition often follows the pace of work and certification, but the willingness to keep deploying resources depends on cash collection. If funding normalizes in Q1FY27 as indicated, execution pace can improve, which ties directly to the FY27 revenue guidance of Rs 700 to 750 crore.

The company is positioning for multiple demand pools beyond JJM. It highlights pumped storage as a structural theme, with a national plan to add 50 plus GW of storage and an aim to install 74 GW by 2031-32. OM Infra is executing the Kundah pumped storage project of 1,000 MW, described as the largest in India. It also states that the suspension of the Indus Water Treaty is expected to accelerate development of hydroelectric projects in bordering regions, potentially boosting hydro mechanical order inflows.

A marquee milestone in FY26 was the start of water impounding at the Isarda Dam on 30 July 2025, after government approval on 25 July. The project value is stated at Rs 615.17 crore with additional scope of Rs 48 crore. The dam’s capacity is shown as 3.24 TMC in Phase 1 and 10.77 TMC in Phase 2, with a 6.03 km composite dam structure. OM Infra frames it as a cornerstone water security project for eastern Rajasthan, integrated with Jal Jeevan Mission and ERCP.

Balance sheet posture and non core cash levers

The company reports net debt to equity at 0.03 times in FY26 in the highlights section, and also provides a consolidated net debt to equity of 0.08 times in the financial trajectory slide. Regardless of the presentation format, the broader signal is that leverage is low relative to equity. Finance costs declining from Rs 36 crore in FY24 to Rs 22 crore in FY25 and Rs 19 crore in FY26 supports that view.

What stands out is the emphasis on monetization as a funding tool. Management expects around Rs 700 crore plus from monetization of non core assets and arbitration awards over the next two to three years.

On real estate, the presentation lists a Rs 600 crore plus segment value. In Pallacia Jaipur, considerations collected are Rs 341 crore, revenue recognized is Rs 275 crore, and remaining realizable value is estimated at Rs 290 crore. Om Green Meadows, Kota shows considerations collected of Rs 88 crore, revenue recognized of Rs 63 crore, and remaining estimated realizable value of Rs 24 crore.

The Mumbai slum rehabilitation project is positioned as a longer cycle option with partnering. The land issues are stated to be fully resolved. The company partnered with Valor Estate for their 50 percent stake, while OM Infra’s stake is 17.5 percent. OM Infra does not envisage further investment and notes that survey has started for shifting slum to a transit camp from the project land, expected soon after clearances.

On arbitration awards, expected cash inflows in an SPV are stated at about Rs 640 crore. The Bhilwara Jaipur Toll Road SPV with 51 percent shareholding has an arbitration award amount of Rs 587 crore, with 10 percent already received and an appeal pending in High Court. The Gurha Thermal SPV with 50 percent shareholding has an arbitration award of Rs 53 crore, appealed in the Supreme Court by Rajasthan Vidyut Vitran Nigam Ltd.

These potential inflows are not operating earnings, but they can materially affect liquidity, working capital headroom, and the ability to bid for larger projects, particularly where upfront mobilisation and procurement are required.

What FY27 hinges on

OM Infra’s FY27 guidance calls for revenue of Rs 700 to 750 crore and EBITDA margin of 7 to 8 percent, with expected order inflow of Rs 1,500 crore. The company’s bid pipeline spans water sanitation and sewage, water resources department projects across Odisha, Chhattisgarh, and Madhya Pradesh, smart cities and urban infrastructure, hydropower works in NHPC and NEEPCO, and JJM in Uttar Pradesh.

The key variable is execution velocity versus cash cycle. If JJM collections normalize as suggested, the company can accelerate work on its Rs 2,107 crore order book, where a large share is in water supply and distribution. If delays persist, the company will likely need to balance progress with working capital discipline, and lean more on monetization and arbitration inflows.

The strategic theme across the presentation is straightforward: keep the core anchored in hydro mechanical and water EPC, use pumped storage and large dams as growth vectors, and use non core monetization to support capital needs without adding leverage.

For investors, FY26 reads as a year of repair rather than expansion. Revenue fell and PAT declined, but EBITDA improved and Q4 showed that margins can normalize when execution conditions improve. The order book remains sizable and concentrated in government backed water programs. The next year will test whether policy tailwinds convert into timely cash flows and whether the company can meet its higher revenue and margin guidance while scaling order inflows to the targeted Rs 1,500 crore.