Om Power Transmission FY26: Rapid Scale-Up, a Record Order Inflow, and the Working Capital Reality

Om Power Transmission Limited closed FY26 with a strong acceleration in scale. Revenue from operations rose to INR 449.16 crore, up 61% year on year, supported by higher execution across its EPC verticals. EBITDA increased 60% to INR 57.11 crore, while margins stayed steady at about 12.7%, indicating that growth did not come at the cost of operating profitability. Profit after tax grew faster than revenue, up 81% to INR 40.02 crore, with PAT margin improving to 8.86%.

The quarter capped this momentum. Q4 FY26 revenue from operations was INR 174.62 crore, up 67% YoY. Q4 EBITDA margin moderated to 13.10% from an unusually high 17.50% base in Q4 FY25, which management attributed to normalization and mix effects. The CFO also cautioned that profitability can be lumpy quarter to quarter in EPC, and suggested looking at trailing four quarters for a cleaner picture.

What drove FY26: execution plus a diversified operating mix

The company operates through four business verticals: Transmission Line EPC, Substation EPC, Underground Cabling, and Operation and Maintenance services. In FY26, Transmission Line EPC remained the largest contributor at 51.61% of revenue (INR 231.76 crore). Substation EPC scaled up materially to 21.86% (INR 98.18 crore). Underground Cabling contributed 19.32% (INR 86.77 crore), while O and M delivered a steadier 7.21% (INR 32.37 crore).

This mix matters because Om Power is trying to build a broader EPC capability set rather than depending only on one sub-segment. Management reiterated its technical experience in transmission lines from 11 kV to 400 kV, and substations up to 220 kV, including both AIS and GIS, with SCADA monitoring systems.

Order book: record inflow, strong visibility, and a shift beyond Gujarat

FY26 was also a record year for order wins. The company reported order inflow of INR 614.54 crore, lifting the year-end unexecuted order book to INR 621.28 crore. This translated into a FY26 book-to-bill ratio of 1.38 times.

The order book is skewed toward Transmission Line EPC at INR 449.71 crore (72.38%), followed by Substation EPC at INR 140.13 crore (22.55%). Underground Cabling and O and M are smaller at INR 20.98 crore (3.38%) and INR 10.46 crore (1.68%) respectively.

A key strategic highlight is geography. Gujarat remains the anchor market, representing 81.68% of the FY26 order book value. But for the first time, Om Power has meaningful entries in Rajasthan (INR 33.61 crore), Punjab (INR 51.97 crore), and Dadra and Nagar Haveli and Daman and Diu (INR 28.24 crore). Management positioned this as a deliberate move to reduce geographic concentration and widen the tender universe.

Client mix remains PSU-heavy. Public Sector Undertakings account for 82.13% of the FY26 order book, and contributed 83.48% of FY26 revenue from operations. The concentration is also visible at the customer level. GETCO alone contributed 64.04% of FY26 revenue, while the top 10 customers accounted for 92.69%.

Margins, guidance, and the working capital trade-off

Management’s near-term guidance focused on sustaining growth while keeping margins stable. On the concall, the company indicated that FY27 growth is expected to continue in line with the last three fiscals, and the CFO explicitly agreed to a 50% plus growth expectation for FY27. The company also guided to maintain EBITDA margins in the 12% to 13% range and PAT margins at 8% to 9%.

Two operating themes came through clearly in the Q and A. First, supply constraints in conductors, cables, transformers, and related equipment were acknowledged as an industry concern, but management said it mitigates this by placing orders immediately after LOI and bulk booking routine items. Second, on input price escalation, management stated that most purchase orders include price variation clauses, implying a mechanism to pass through price changes.

However, FY26 financial statements show the classic EPC working capital reality. Net cash flow from operating activities was negative at INR 25.63 crore in FY26, despite positive EBITDA. Trade receivables expanded to INR 221.42 crore by FY26 year-end. Management also disclosed retention money of around INR 66 crore as of March 2026. These disclosures do not imply stress by themselves, but they highlight that growth is balance-sheet intensive even for an asset-light model.

The IPO in April 2026 for INR 150 crore is positioned as a solution to this constraint. Management stated proceeds would strengthen long-term working capital and improve the ability to furnish bid deposits, performance guarantees, and mobilization advances, enabling participation in larger tenders. The company also received a CRISIL rating upgrade in April 2026 to BBB plus stable for long-term and A2 for short-term, reinforcing improved credit profile.

Takeaways

Om Power’s FY26 performance reflects a company scaling quickly in a supportive power T and D cycle. Revenue and earnings growth were strong, margins stayed stable, and the order book reached an all-time high. At the same time, the business remains concentrated in Gujarat and in PSU customers like GETCO, and FY26 cash flow highlights the working capital intensity that comes with rapid execution.

The next year’s narrative, as framed by management, is about sustaining a high growth rate, keeping margins in the 12% to 13% EBITDA band, and using post-IPO balance sheet strength to bid larger and more complex projects while continuing geographic diversification.