Om Power Transmission’s Q1 FY27: Growth continues, margins reflect project mix

Om Power Transmission Limited (OPTL), a power infrastructure EPC player focused on transmission lines, substations, underground cabling, and long-term operations and maintenance, opened FY27 with steady execution. In Q1 FY27, the company reported revenue from operations of 12,163 lakhs (121.63 crore), up 37% year-on-year. EBITDA rose 23% YoY to 1,477 lakhs (14.77 crore). Profit after tax increased 26% YoY to 1,052 lakhs (10.52 crore).

The quarter also reflected a familiar reality of EPC businesses: margins can shift depending on the project mix. The company’s financial highlights table shows an EBITDA margin of 12.15% for Q1 FY27, while the management commentary cites an EBITDA margin of 12.75% for the quarter and attributes the change to project mix. Management also stated that quarter-to-quarter variance is inherent in the business and that the company remains aligned to its steady-state margin profile on an annual basis.

Order book: healthy, but intake can be lumpy

Order visibility remains one of the key pillars of OPTL’s investment narrative. As of 30 June 2026, the closing order book stood at 56,747 lakhs (567.47 crore). This followed new order intake of 67.82 crore in Q1 FY27 and execution of 121.63 crore during the same period.

Management cited specific wins in the quarter, including an order from Gujarat Energy Transmission Corporation Limited (GETCO) for the 220 kV Jantral AIS substation and a private sector order for a single-circuit 220 kV transmission line. Post quarter-end, the company also received orders from PGVCL for a turnkey underground cable project and from GETCO for a 66 kV underground cable project.

At the same time, management flagged that tender activity from GETCO has been somewhat lumpy or muted at the start of the financial year and expects it to pick up as the year progresses. The company’s presentation also explicitly notes that order inflow in EPC tends to have inherent lumpiness, which is expected to reduce as scale and the order book grow.

Business model and revenue mix: integrated EPC with a Gujarat anchor

OPTL positions itself as an integrated power infrastructure EPC company covering design, engineering, procurement, construction, commissioning, project management, and long-term O&M. The company’s core execution capability spans transmission and substations up to 400 kV, with stated eligibility up to 765 kV.

For FY26, the company disclosed a revenue mix across four verticals. Transmission lines remained the flagship vertical at 52% of revenue, followed by substations at 22%, underground cabling at 19%, and O&M at 7%. This mix reflects OPTL’s attempt to combine scale work (overhead transmission) with more specialised segments (underground cabling and GIS substations), while maintaining recurring service-like revenue through O&M.

The customer profile remains utility-led. For FY26, OPTL reported a PSU versus private revenue mix of 83% and 17%, and an order book mix of 82% PSU and 18% private. The company also disclosed that its top 10 customers accounted for 93% of FY26 revenue. The presentation describes concentration as structural to utility EPC; however, the disclosures also highlight why geographic and private sector diversification remains an important strategic theme.

On geography, OPTL’s FY26 order book by region indicates Gujarat at 82%, while Punjab, Rajasthan, and Dadra and Nagar Haveli and Daman contributed 8%, 5%, and 5% respectively. The company noted that the order book was effectively 100% Gujarat through FY23 to FY25 and that FY26 marked the beginning of a multi-state order book.

Strategy: moving up the value chain and expanding adjacencies

The company’s stated strategy is framed as a two-engine approach: deepen the core and extend into adjacencies. On the core side, OPTL plans to increase wallet share from Gujarat and GETCO’s transmission capex, win larger turnkey packages, and leverage its AA-class GETCO certification to qualify for bigger tenders.

On adjacencies, OPTL highlights its intent to venture into 765 kV transmission lines and the HVDC segment. The deck argues that higher tiers in transmission typically carry higher value per kilometre and that fewer players qualify for such complex projects, which can support more predictable margins. It also highlights GIS substations and underground cabling as premium or niche offerings that can be margin-accretive.

A notable Q1 FY27 development was management’s disclosure of the proposed incorporation of OPTL Green Energy Private Limited, which is intended to pursue opportunities in renewable EPC. This aligns with the broader policy-driven capex cycle described in the presentation, where renewable integration, evacuation infrastructure, and distribution reforms are expected to drive sustained T and D investment in India.

The deck also references the company’s entry into power distribution after 2022, with execution of 11 kV distribution projects under RDSS and smart city programmes. This is positioned as an extension across the full transmission and distribution chain.

Financial profile: rapid growth, strong returns, and working-capital swings

OPTL’s growth trajectory over FY23 to FY26 is presented as a key differentiator. Revenue increased from 120 crore in FY23 to 449 crore in FY26, while EBITDA rose from 12 crore to 57 crore and PAT from 6 crore to 40 crore over the same period.

The company also highlights strong returns, with ROE of 38% and ROCE of 44% in FY26. Leverage is presented as conservative, with net debt-to-equity of 0.35x in FY26 and interest coverage of 8.9x. The company notes that its CRISIL rating improved to BBB+ and A2 in April 2026 post IPO.

However, cash flow data shows the typical working-capital intensity of EPC execution. In FY26, cash flow from operating activities was negative at 2,562.85 lakhs (25.63 crore). While this does not by itself indicate stress, it is an important indicator for investors to track alongside revenue growth, receivables, and order execution pace.

Takeaways

OPTL’s Q1 FY27 presentation reinforces a consistent message: the company is attempting to scale a profitable, integrated EPC model while moving toward higher-value work such as GIS substations, underground cabling, and eventually 765 kV and HVDC segments. The quarter delivered healthy year-on-year growth in revenue, EBITDA, and PAT, while management acknowledged that margins can vary based on project mix.

The next phase of the story hinges on three measurable threads embedded in the deck. First, sustaining order inflow to replenish execution and manage the inherent lumpiness of tenders, particularly in the home market of Gujarat. Second, continuing the shift toward a broader, multi-state footprint and deeper private sector franchise. And third, keeping working-capital discipline tight, given the negative operating cash flow reported in FY26.