Om Power Transmission FY26 cash flow turns negative on receivables

Om Power Transmission Limited reported Rs 25.63 crore of net cash used in operating activities in FY26, against an Rs 16.87 crore inflow in FY25. Trade receivables rose 146% to Rs 221.42 crore, while revenue increased 61% to Rs 449.16 crore and profit after tax reached Rs 40.02 crore.

Why did Om Power Transmission's operating cash flow turn negative in FY26?

Om Power Transmission's operating cash flow turned negative in FY26, with Rs 25.63 crore used in operating activities after an Rs 16.87 crore inflow in FY25. The presentation does not provide a detailed reconciliation of the change, but it reports a substantial rise in trade receivables, inventories and current liabilities alongside the cash-flow reversal.

Trade receivables increased by Rs 131.31 crore, from Rs 90.11 crore in FY25 to Rs 221.42 crore in FY26. That increase exceeded FY26 profit after tax of Rs 40.02 crore, even as revenue rose by Rs 169.73 crore to Rs 449.16 crore. Reported earnings and operating cash generation therefore moved in opposite directions during FY26.

How much did Om Power Transmission's working capital balances change?

Om Power Transmission's receivables rose 146% in FY26, compared with increases from Rs 57.82 crore in FY23 to Rs 69.89 crore in FY24 and Rs 90.11 crore in FY25. The FY26 movement of Rs 131.31 crore was substantially larger than the Rs 20.22 crore cumulative increase over the preceding two years.

Inventories doubled from Rs 7.47 crore in FY25 to Rs 15.91 crore in FY26, while trade payables rose from Rs 45.17 crore to Rs 123.55 crore. Current borrowings also increased from Rs 17.86 crore to Rs 45.17 crore. These balance-sheet movements accompanied a rise in material consumed to Rs 237.86 crore from Rs 124.23 crore and project-related expenses to Rs 109.50 crore from Rs 85.00 crore.

Total current assets increased to Rs 310.31 crore in FY26 from Rs 130.44 crore in FY25, while total current liabilities rose to Rs 200.01 crore from Rs 71.99 crore. Cash and cash equivalents nonetheless rose from Rs 0.69 crore to Rs 2.99 crore because Rs 45.93 crore from financing activities exceeded the combined Rs 43.63 crore operating and investing cash outflows.

Did Om Power Transmission's earnings and returns improve in FY26?

Om Power Transmission's reported earnings and return measures improved in FY26 despite the operating cash outflow. Revenue rose to Rs 449.16 crore from Rs 279.44 crore, while EBITDA, or earnings before interest, tax, depreciation and amortisation, increased to Rs 57.11 crore from Rs 35.66 crore. Profit after tax rose to Rs 40.02 crore from Rs 22.08 crore.

The EBITDA margin was 12.72% in FY26, marginally below 12.76% in FY25, while the profit-after-tax margin rose to 8.86% from 7.84%. Return on equity increased to 38% from 36%, and return on capital employed was unchanged at 44%. The presentation attributes the change in returns over the four-year period to scale and margin gains.

Finance costs rose to Rs 7.46 crore in FY26 from Rs 6.00 crore in FY25, while depreciation and amortisation declined to Rs 0.76 crore from Rs 1.19 crore. Profit before tax consequently increased to Rs 51.50 crore from Rs 30.67 crore. These profit measures contrast with the operating cash outflow recorded separately in the cash-flow statement.

What changed in Om Power Transmission's funding and credit profile?

Om Power Transmission generated Rs 45.93 crore from financing activities in FY26 after recording financing outflows of Rs 12.74 crore in FY25. It reported total equity of Rs 136.94 crore at FY26 year-end, before the initial public offering, compared with Rs 72.65 crore in FY25. Equity share capital was Rs 26.67 crore in FY26, against Rs 0.60 crore a year earlier.

The presentation states that the April 2026 listing raised Rs 132.56 crore of fresh capital. Management says the proceeds position Om Power Transmission for faster growth, support its historical revenue-growth pace at sustainable margins and expand its capacity to bid for higher-value and more complex projects. Those are management's stated expected effects rather than FY26 operating results.

Om Power Transmission reported net debt-to-equity of 0.35 times in FY26, compared with 0.59 times in FY23, and interest coverage of 8.9 times. CRISIL's long-term rating moved from BB+ in 2023 to BBB- in 2025, BBB in November 2025 before the IPO, and BBB+ in April 2026 after the IPO. The short-term rating was CRISIL A2 in April 2026, and rated bank limits were Rs 200 crore.

What should readers monitor after Om Power Transmission's FY26 cash outflow?

Readers should monitor whether Om Power Transmission converts its Rs 221.42 crore receivables balance into operating cash while executing its Rs 621 crore FY26 closing order book. The closing book was 1.39 times FY26 revenue, below the four-year average book-to-bill ratio of 1.88 times. FY26 order inflow was Rs 614 crore.

Readers can also track the deployment of Rs 132.56 crore in IPO proceeds alongside FY26 current borrowings of Rs 45.17 crore and trade payables of Rs 123.55 crore. Gujarat accounted for 82% of the FY26 order book, while Punjab represented 8%, Rajasthan 5%, and Dadra, Nagar Haveli and Daman 5%. The presentation says the order book had been effectively entirely Gujarat through FY25.

Conclusion

Om Power Transmission's FY26 disclosures show that revenue, profit and reported returns expanded while cash conversion moved in the other direction. The growth in receivables, inventories, payables and borrowings occurred during a year when operating activities used cash, while financing inflows supported the increase in cash and cash equivalents.

The next disclosed matter to watch is management's use of the April 2026 IPO proceeds to support growth and bids for larger, more complex projects. Execution of the Rs 621 crore order book, and whether the FY26 receivables balance converts into operating cash, remain the key unresolved indicators in the presentation.