Om Power Transmission IPO

The company’s operating revenue has grown fast, from ₹120.24 crore in FY23 to ₹279.44 crore in FY25. That’s about 52% growth every year, which is quite strong. Even better, profits grew even faster, up 88.17% yearly to ₹22.08 crore. This tells you the business isn’t just growing, it’s scaling well and executing efficiently.

As of December 2025, it has an unexecuted order book of ₹744.60 crore. These are confirmed projects that are yet to be completed. What stands out is that this is almost 2.7 times its FY25 revenue. So, there’s already a solid pipeline of future work, and revenue visibility looks quite strong.

The company is using its money very efficiently. It reported a RoCE (Return on Capital Employed, meaning how well it uses total funds in the business) of 41.76% and RoE (Return on Equity, meaning returns generated on shareholders’ money) of 35.83% in FY25. These are strong numbers and show the business generates healthy returns on invested capital.

Earlier, most of its work was limited to Gujarat. Now, it has started expanding into other states. It has already secured projects worth ₹88.45 crore in Punjab and ₹33.61 crore in Rajasthan, along with work in Daman & Diu. This reduces dependence on one region and opens up more growth opportunities.

The company has an “AA Class” certification from a state utility, which reflects strong credibility. Since starting out, it has completed over 440 circuit kilometers of power lines and built four substations. This consistent track record of delivering projects on time helps it win more large government contracts.

A big chunk of its revenue comes from just one client, GETCO, which alone contributed 71.55% of revenue in the nine months ending December 2025. On top of that, its top 10 customers make up 97.65% of total revenue. So, if even one major client pulls back, it can hit the company’s earnings quite hard.

Around 83.74% of its ₹744.60 crore order book comes from government projects. While this gives stability, it also brings risk. Government payments can be slow, and projects can get delayed due to policy changes, funding issues, or shifting priorities. All of this can directly impact cash flow and execution timelines.

Even though the company is reporting good profits, it actually saw a negative operating cash flow of ₹37.39 crore in the nine months ending December 2025. Operating cash flow simply means the real cash coming in from business operations. If profits don’t convert into cash, it can create pressure on daily operations and debt repayments.

This is a business that needs a lot of upfront money to run. By December 2025, ₹149.85 crore was tied up in working capital, which is about 62.42% of its total assets. Working capital here means money stuck in inventory, receivables, and ongoing projects. If funding becomes tight, project execution can slow down.

The company is waiting on a large amount of money from its customers. As of December 2025, unpaid bills stood at ₹144.07 crore, with ₹11.26 crore pending for over six months. If these payments get delayed further or turn bad (not recovered), it can seriously strain the company’s finances.

Material costs are a big part of its expenses. It spent ₹141.62 crore on materials, which is over 51% of its total income. The tricky part is that about 36.08% of its projects are fixed-price contracts, meaning prices are locked in advance. So, if steel or aluminum prices suddenly rise, the company has to absorb the extra cost, which can reduce profits.