OM Infra Q1 FY27: Profitability Rebounds as Water EPC Pipeline Builds

Om Infra Limited opened FY27 with a cleaner profit picture and a clearer operating narrative. Consolidated revenue for Q1 FY27 came in at Rs 124 crore, up 19 percent year on year from Rs 104 crore. More important than the top line was the swing in operating profitability. Consolidated EBITDA turned positive at Rs 10 crore versus a loss of Rs 7 crore a year ago, lifting the EBITDA margin to 8 percent from minus 1 percent. Profit after tax attributable to owners rose to Rs 12 crore from a loss of Rs 1 crore in Q1 FY26, with PAT margin expanding to 9 percent.

The quarter also carried a strong subtext: OM Infra is positioning for a larger water infrastructure cycle even as near term execution depends on state level funding cadence, especially under Jal Jeevan Mission. Management commentary in the investor presentation points to improving payment conditions, supported by a fund allocation revival plan worth Rs 27,000 crore in Uttar Pradesh and Rajasthan. That matters because the company noted that early expense booking continued despite fund constraints, but project progress was maintained and pending payment issues are being progressively resolved.

Q1 performance: margins recover, finance costs stay controlled

The consolidated P and L shows a company that has regained operating leverage despite a sequential decline. Net sales declined 22 percent quarter on quarter from Rs 160 crore in Q4 FY26 to Rs 124 crore, but year on year the company expanded revenue and reduced cost pressure. Total expenses rose only 9 percent year on year to Rs 114 crore, while other income fell to Rs 3 crore from Rs 5 crore.

Finance costs remained contained at Rs 4 crore in Q1 FY27 compared with Rs 5 crore in Q1 FY26. Depreciation stayed at around Rs 1 crore. The result was a sharper PBT expansion to Rs 8 crore from a loss of Rs 1 crore a year ago. Tax for the quarter is shown at negative Rs 4 crore, which contributed to PAT of Rs 12 crore.

Standalone numbers were similar in shape. Standalone net sales grew 21 percent year on year to Rs 121 crore. Standalone EBITDA improved to Rs 11 crore from Rs 1 crore, with a 9 percent margin. Standalone PAT rose to Rs 12 crore from Rs 1 crore.

A separate snapshot in the presentation lists consolidated Q1 FY27 metrics in million rupees, including revenue of Rs 1,244 million, EBITDA Rs 101 million, EBIT Rs 91 million, PBT Rs 79 million, PAT Rs 115 million, and EPS of Rs 1.19 per share. The reported rupee crore tables and the million rupee highlights both point to the same core message: profitability improved meaningfully in Q1 FY27.

Order book and execution: steady base, near term catalysts

As of 30 June 2026, OM Infra reported an outstanding order book of Rs 2,014.91 crore. The company describes this as a 3X order book and provides additional context: order book has held above Rs 2,000 crore through FY26 and into Q1 FY27, with a closing figure of Rs 2,107 crore in FY26 and Rs 2,014 crore in Q1 FY27. The order book is split between Hydro and Water and Jal Jeevan Mission. The presentation indicates values of Rs 668 crore and Rs 1,346 crore for these two buckets.

Execution dynamics in water EPC are tightly linked to payment schedules that vary by project. The company notes that some projects are front loaded and some are back loaded, and that state fund constraints can cause early expense booking. In this context, improving payment conditions are a key operational lever, not just a finance line item.

There is also a near term order book catalyst that sits outside the reported closing number. OM Infra has been declared the lowest bidder for two large EPC water projects, together valued at more than Rs 1,051 crore. These include the Andheri Medium Irrigation Project in Baran, Rajasthan for Rs 482.27 crore excluding taxes, and the Mohmela Sirpur Barrage Project in Raipur, Chhattisgarh for Rs 568.98 crore. The presentation states that letters of intent are expected soon.

This pipeline matters for two reasons. First, it can reaccelerate order inflow after a quarter in which order inflow is shown as zero. Second, it expands the company’s water infrastructure footprint beyond its current concentration, while keeping it aligned with central government priorities.

Policy and budget tailwinds: water and storage are multi year themes

OM Infra’s presentation ties its strategy directly to the government’s capex stance. The Union Budget increases infrastructure outlay to Rs 12.2 lakh crore from Rs 11.2 lakh crore, and introduces an Infrastructure Risk Guarantee Fund that can provide partial credit guarantees. For water specifically, the presentation cites an overall water sector outlay of more than 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.

For OM Infra, the most direct driver is Jal Jeevan Mission, which is extended till 2028. The company also highlights a broader allocation lens through the Ministry of Jal Shakti. The presentation shows drinking water and sanitation outlay rising from Rs 29,917 crore in 2024-25 to Rs 74,226 crore in 2025-26 (RE), with JJM at Rs 67,000 crore in 2025-26 (RE). Water resources outlay is shown at Rs 25,277 crore, including PMKSY Rs 8,260 crore, river linking Rs 3,400 crore, Namami Gange Rs 2,400 crore, and ABY Rs 1,780 crore.

The company’s opportunity framing is not limited to water supply. It also positions itself for hydropower and pumped storage projects. The presentation notes that pumped storage projects are part of a national plan to add more than 50 GW of storage, and separately discusses a potential growth path to 74 GW of PSP capacity by 2031-32, with longer term potential cited at 176 GW. OM Infra is executing the Kundah Pumped Storage Project of 1,000 MW, described as the largest in India.

There is also a geopolitical angle discussed: the suspension of the Indus Water Treaty is expected to accelerate development of hydroelectric projects in bordering regions, which could boost hydro mechanical order inflows.

Engineering base: five decades of hydro mechanical capability

OM Infra’s investment case is built around specialization. The company highlights over 55 years of project execution and 70 plus hydro mechanical turnkey projects executed over five decades, with projects executed worth more than Rs 5,000 crore. It also states that it has in house manufacturing for critical hydro components and offers end to end turnkey execution from inspection and design to manufacturing, installation, commissioning, and service.

The presentation emphasizes niche products such as radial, vertical, stop log, and draft tube gates, steel liners, penstocks and pressure shafts, trash racks, cranes, and mechanical and hydraulic hoists. It also positions long term and short term operations and maintenance as a service line.

Major hydro references in the deck include Koldam Hydro Electric Project, an 800 MW project featuring installation and commissioning of one of the largest vertical lift gates in the world, and Gosikhurd Dam Project with execution of large radial gates in significant quantity.

On the water and irrigation side, the deck highlights Isarda Dam as a milestone project where water impounding commenced on 30 July 2025 after government approval on 25 July. The project value is listed at Rs 615.17 crore with an additional scope of Rs 48 crore. The capacity is shown as 3.24 TMC for Phase 1 and 10.77 TMC for Phase 2, with a 6.03 km composite dam structure. The company states the dam is expected to benefit over 3 crore people across 13 districts and supports drinking water supply under JJM and ERCP integration.

Balance sheet and credit signals: leverage remains low, ratings improve

The company’s consolidated balance sheet indicates total equity of Rs 808 crore in FY26, up from Rs 792 crore in FY25. Total liabilities and equity are shown at Rs 1,464 crore in FY26. Borrowings within non current liabilities are listed at Rs 2 crore in FY26, while current borrowings are listed at Rs 84 crore.

The presentation also highlights Net Debt to Equity ratios across years, showing 0.08x in FY26 and 0.13x in Q1 FY27. It also provides finance cost trend data showing finance costs declining from Rs 22 crore in FY25 to Rs 19 crore in FY26 and Rs 4 crore in Q1 FY27.

A notable external validation is the upgrade by Infornics of the company’s Rs 718.96 crore bank loan facilities to IVR BBB plus stable for long term and IVR A3 for short term, improving over the previous CARE BB plus stable and CARE A4 plus ratings. For an EPC company operating in government linked segments, this kind of rating improvement can translate into smoother access to working capital and better terms.

Non core monetisation: real estate and arbitration as funding runway

OM Infra’s narrative includes funding optionality beyond core EPC execution. The company describes monetisation of non core assets and arbitration awards as a source of surplus funds that can support capex and working capital over the next three to five years.

In real estate, the presentation cites value potential of Rs 600 crore plus. It provides details on Pallacia Jaipur, a RERA compliant apartment project with project area of 6,46,150 sq ft, consideration collected of Rs 345 crore, revenue recognized of Rs 279 crore, and remaining realizable value estimated at Rs 286 crore. For Om Green Meadows, Kota, it reports project area of 3,53,814 sq ft, consideration collected Rs 90 crore, revenue recognized Rs 63 crore, and remaining realizable value estimated at Rs 23 crore.

For the slum rehabilitation project in Mumbai, OM Infra states it has partnered with Valor Estate for their 50 percent stake and OM Infra’s stake is 17.5 percent in the firm. It adds that it does not envisage any further investment. Survey activity has started for shifting of slums to a transit camp, expected after clearances. The deck references FSI expected for about 2 million sq ft development potential, with OM Infra’s share depending on area sharing ratio and selection of a branded developer.

On arbitration awards, the company indicates expected cash inflows in SPVs worth 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 appeal pending in High Court. The Gurha Thermal SPV with 50 percent shareholding has an award amount of Rs 53 crore, which is appealed in the Supreme Court.

Outlook: guidance points to recovery, order inflow is the swing factor

For FY27, OM Infra provides clear guidance: revenue of Rs 700 to 750 crore and EBITDA margin of 7 to 8 percent. It also targets expected order inflow of Rs 1,500 crore, with focus areas including hydro mechanical projects, pumped storage, STP, and water infrastructure projects.

The bridge between guidance and delivery will likely be defined by three moving parts that are visible in the presentation.

First is conversion of the two L1 EPC wins into LOIs and then into executable order book. At Rs 1,051 crore combined, these are material relative to the current order book and can change the trajectory of inflows.

Second is payment normalization in Jal Jeevan Mission projects. The company explicitly states that pending payment issues are being progressively resolved and dues are expected in the near term, supported by the revival plan in Uttar Pradesh and Rajasthan. If that plays out, it can reduce working capital friction and allow margins to reflect execution rather than funding timing.

Third is the mix between water EPC and hydro mechanical work. The company positions hydro mechanical as a niche segment with in house manufacturing and long project relationships with clients such as NTPC, NHPC, SJVN, NEEPCO and others. A higher share of these contracts, alongside stable water execution, could support the EBITDA range it is guiding for.

Investor takeaways: a quarter of reset, not a finish line

Q1 FY27 reads like a reset quarter for OM Infra. The core financial win was the return to positive EBITDA and PAT, with consolidated EBITDA margin back to 8 percent and PAT margin at 9 percent. The operating win was maintaining progress despite funding constraints and pointing to easing payments under Jal Jeevan Mission.

The strategic picture is steady. The company’s order book remains around Rs 2,015 crore, and it is aligned to budget backed themes such as Jal Jeevan Mission, AMRUT 2.0, irrigation and river linking, and pumped storage projects. The next step is conversion. If the two L1 orders translate into LOIs and execution ramps, and if state level payments continue to improve, FY27 guidance of Rs 700 to 750 crore revenue with 7 to 8 percent EBITDA looks more achievable.

For investors, the message is not that risk has disappeared. Working capital timing and state fund flows remain central. But OM Infra is entering FY27 with stronger profitability, improving credit signals, and identifiable order catalysts. That combination is what can rebuild confidence, quarter by quarter, in an EPC business where execution discipline matters as much as order wins.