Om Power Transmission Limited — Q4 FY26 earnings call

Call held 20 May 2026

Management summary

Om Power Transmission Limited delivered robust financial results for Q4 and FY26, marked by significant revenue and PAT growth, driven by strong order inflows and an expanding order book. The company's strategic focus on technical capability enhancement, geographical expansion, and efficient working capital management has positioned it for continued growth, with management guiding for over 50% revenue growth in FY27. Despite some margin moderation in Q4, the full-year margins remained stable, and the balance sheet was strengthened by IPO proceeds.

Highlights

  • Revenue from operations for FY26 grew 60.7% YoY to INR 449.16 crores, demonstrating strong business momentum.

  • PAT for FY26 grew 81.2% YoY to INR 40.02 crores, with PAT margin expanding from 7.84% in FY25 to 8.86% in FY26.

  • The company recorded its highest overall order inflow of INR 615 crores during FY26, leading to an all-time high unexecuted order book of INR 621 crores as of March 31, 2026.

  • A book-to-bill ratio of 1.38x provides healthy revenue visibility for the coming years, with an average execution timeline of 18 months.

  • The debt-to-equity ratio stood at a comfortable 0.35x, reflecting a strong balance sheet position, further bolstered by IPO proceeds received in April 2026.

Concerns

  • Q4 FY26 EBITDA margin moderated to 13.10% from 17.50% in Q4 FY25, attributed to normalization from an unusually high base.

  • The underground cabling segment's revenue contribution decreased from 30% in FY25 to 20% in FY26, with its share in the current order book being only 2% (INR 10 crores).

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹174.62 Cr
    YoY +67.2% QoQ +68%
  • EBITDA
    ₹22.87 Cr
  • EBITDA Margin
    13.1%
  • PAT
    ₹16.65 Cr
  • PAT Margin
    9.5%

FY26

  • Revenue
    ₹449.16 Cr
    YoY +60.7%
  • EBITDA
    ₹57.11 Cr
  • EBITDA Margin
    12.7%
  • PAT
    ₹40.02 Cr
    YoY +81.2%
  • PAT Margin
    8.9%
  • EPS
    ₹15.53
  • Return on Equity
    38%
  • Return on Capital Employed
    44%

What they filed

Q1 FY27: revenue up 17.3%, net profit down 8.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ4 FY25Q1 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue104 89 104 175 122 +17%
EBITDA18 12 13 23 15 −17%
Net profit12 8 9 17 11 −8%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Order Book (FY26)
₹620 Cr Total
  • Transmission line EPC ₹449 Cr 72.4%
  • Substation EPC ₹140 Cr 22.6%
  • Operation & Maintenance ₹21 Cr 3.4%
  • Underground Cabling ₹10 Cr 1.6%

Order book

high confidence

Total value

₹621 Cr

as of 2026-03-31 quantified

Inflow this quarter

₹615 Cr

Execution

Generally our timeline is 12 to 24 months, so averaging it, our timeline is 18 months.

Composition

Mix 2 client types
  • Public Sector Undertakings 82%
  • Private Sector 18%

Share of order book by client type

Pipeline

qualified rfp

Pipeline of tenders

The company achieved its highest-ever order inflow and order book in FY26, providing strong revenue visibility for the coming years, with a diversified mix across segments and clients.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Debt disclosed
    The debt-to-equity ratio was 0.35x, reflecting our comfortable balance sheet position, which has been further strengthened by the IPO proceeds received in April 26.
  • Liquidity Liquidity disclosed IPO proceeds received in April 2026 will be deployed towards long-term working capital to strengthen capacity for large bid deposits, performance guarantees, and mobilization requirements.
    We also intend to deploy a portion of the IPO proceeds toward long-term working capital, which will strengthen our capacity to participate in large bid deposits, performance guarantees, and mobilization requirements.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence 50%+
    Whatever historical performance we have shown in the last three fiscals, with the same performance we will grow in this fiscal '27 as well. So you expect 50% plus growth FY27 as well? Yes.

    — Chetan Modi

Profitability

  • EBITDA Margin Profitability · Next two years · High confidence 12-13%
    We are expecting to maintain an EBITDA between 12% to 13% and PAT margin of 8% to 9%.

    — Chetan Modi

  • PAT Margin Profitability · Next two years · High confidence 8-9%

    — Chetan Modi

  • Distribution Segment Margins Profitability · Ongoing · High confidence 12-13%
    Okay. And its margins will be close to 12%-13%? Yes, ma'am.

    — Kanu Patel

Order Inflow

  • Order Inflow Growth Order Inflow · FY27 · Medium confidence Matching 50% revenue growth
    So basically order inflow will be matching, what, see, whatever the revenue growth we are expecting at the pace of the 50%. In commensurate with that, we will maintain the order inflow to sustain our revenue growth.

    — Chetan Modi

Order Book

  • Win Ratio for Bid Pipeline Order Book · Ongoing · High confidence 30-40%
    Madam, our win ratio is 30 to 40%. Okay. We will move ahead with the same ratio, madam.

    — Kanu Patel

What to watch in Q1 FY27

FY27 Revenue Growth

FY27
Current 60.7% (FY26)
Target 50%+

Why it matters

To verify if the company can sustain its high growth trajectory as guided by management.

Whatever historical performance we have shown in the last three fiscals, with the same performance we will grow in this fiscal '27 as well. So you expect 50% plus growth FY27 as well? Yes.

Risks & concerns

  • Raw material shortages and price volatility

    medium

    Analyst raised concerns about shortages of conductors, cable wires, insulators, and transformers. Management stated they order in advance and have price variation clauses in POs to mitigate impact.

    Analyst acknowledged

  • Competition in new geographical markets

    medium

    Analyst asked about competition in new states. Management expects margins might be slightly lower but is confident in winning tenders at similar EBITDA levels due to the overall boom in power infra.

    Analyst acknowledged

  • Potential payment collection issues with government clients

    low

    Analyst noted common payment issues in EPC with government. Management clarified that majority clients are PSUs, particularly GETCO, with 80% of RA bills released within 30 days, indicating efficient collection.

    Analyst downplayed

  • Margin pressure from private sector projects

    low

    Analyst questioned the decreasing private sector revenue share. Management stated they selectively pursue private projects to sustain desired margins, avoiding those with lower profitability.

    Analyst acknowledged

Q&A highlights

7 direct
Raw material shortages and price increases Direct
Sir, currently this total scenario that is going on, according to that we are already aware and ready in advance. Like as soon as we get an order, an LOI, we place orders for materials as per our ordering planning immediately, so we get sufficient time for delivery of materials. ... Sir, all our purchase orders, almost all our POs have price variation calculations. The price that varies according to the scenario gets compensated for us in the price variation clause.

Addresses a key industry-wide concern about supply chain disruptions and cost inflation, with management outlining mitigation strategies.

Asked by Aashav Patel

Payment collection policy and challenges with government clients Direct
So basically all our majority of the customers are PSUs. In the case of Gujarat, we majority deal with the GETCO. So basically collection terms are such that our 80% of our RA bills get released within 30 days, and out of the rest 20%, that 10% gets released once we erect the supplied material and rest 10% gets released on the completion of the project and raising of the final invoice. So we generally do not face any challenges in the collection.

Provides clarity on the company's efficient working capital management and low risk of payment delays, crucial for the construction sector.

Asked by Aashav Patel

Decreasing revenue share from private players and its impact on margins Direct
Sir, we want to sustain a margin, so sometimes we don't get that in the private segment, that's why we have reduced it a bit. But as we move forward, if there is a good project, a specialized job, or margins are available, then we certainly gain it and our other clients, private clients, are also increasing, sir.

Explains the company's strategic approach to client selection, prioritizing margin sustainability over revenue from potentially lower-margin private projects.

Asked by Sanket Sadh

Efficiency of working capital cycle compared to peers Direct
See, basically our majority of the customers are lying with the PSU. So our 80% of the RA bill gets collected within 30 days, so it gets shortened that way. And also we are able to maintain our inventory efficiently, and we are good at negotiation with our vendors as well. So that helps us in reducing our working capital cycle.

Highlights the operational strengths contributing to a significantly shorter working capital cycle (75 days vs 150 days for others), a key efficiency metric in the sector.

Asked by Sanket Sadh

Growth drivers for FY27, especially given low underground cabling order book Direct
Madam, if we see in this, growth will also come in underground cables. Right now across Gujarat, there are a lot of GETCO tenders for underground cabling in the pipeline. And in transmission overhead too, there is a lot of scope in that as well. So growth is going to come in both, madam.

Clarifies that future growth will be broad-based, including a recovery in underground cabling due to upcoming tenders, alongside continued strength in transmission overhead projects.

Asked by Maitri Shah

Experience with 765 kV transmission projects and future opportunities Partial
At present, we have not, madam. But we have sufficient experience of 400 kV, on the basis of which we will be eligible for 765, madam and we can do it.

Indicates the company's ambition and perceived capability to move into higher voltage projects (765 kV), opening new avenues for growth, despite lacking direct prior experience.

Asked by Maitri Shah

Competition and margin strategy in new geographical markets Direct
Madam, in pan-India, there is a lot of boom in power infra. So if we go to other states, margins might be a bit lower, but it won't have that much impact. So we are confident that we will win tenders at the same EBITDA and our vision is to execute them, madam.

Outlines the strategy for geographical expansion, acknowledging potential slight margin pressure but maintaining confidence in winning profitable tenders.

Asked by Maitri Shah

Material cost relative to revenue and GP margin sustainability Direct
We are maintaining the GP margins range of around 23% to 25%, so the same which we have envisaged in March '25, with the same in March '26 we have achieved the same and EBITDA margin of around 12% to 13% and more revenue on account of the execution rather than supply.

Reassures on the stability of gross profit margins and attributes revenue growth more to execution efficiency than just material supply.

Asked by Aditya Jain

2 min read 5 chapters

Detailed narrative

Robust Financial Performance in Q4 and FY26

Om Power Transmission Limited reported strong financial results for Q4 and the full fiscal year 2026. For Q4 FY26, revenue from operations stood at INR 174.62 crores, marking a significant 67.2% year-on-year growth and 68% sequential growth. Full-year FY26 revenue reached INR 449.16 crores, a 60.7% increase over FY25. PAT for FY26 grew 81.2% to INR 40.02 crores, with the PAT margin expanding to 8.86%. The company also achieved a healthy Return on Equity of 38% and Return on Capital Employed of 44%.

Record Order Inflow and Strong Order Book Visibility

FY26 was a transformative year for the company's order book, with the highest-ever overall order inflow of INR 615 crores. This led to an all-time high unexecuted order book of INR 621 crores as of March 31, 2026, which is more than three times the FY23 level and 41% higher than FY25. The book-to-bill ratio of 1.38x provides strong revenue visibility, with an average project execution timeline of 18 months. The company also has a robust bid pipeline exceeding INR 900 crores as of March 31, 2026, with a historical win ratio of 30-40%.

Diversified Capabilities and Strategic Expansion

The company's EPC capabilities span transmission lines and substations from 11 kV to 400 kV, and underground cabling up to 220 kV. Transmission line EPC remains the largest segment, contributing 51.61% of FY26 revenue, followed by Substation EPC at 21.86% and Underground Cabling at 19.32%. Om Power is strategically expanding its geographical footprint beyond Gujarat into states like Rajasthan, Punjab, and Dadra Nagar Haveli, while also enhancing technical capabilities to bid for higher-value projects, including future 765 kV opportunities.

Efficient Working Capital Management and Balance Sheet Strength

Om Power Transmission maintains a comfortable debt-to-equity ratio of 0.35x, which was further strengthened by the IPO proceeds received in April 2026. The company's working capital cycle is notably efficient, at around 75 days compared to an industry average of 150 days. This efficiency is attributed to a majority of PSU clients, with 80% of RA bills released within 30 days, coupled with effective inventory management and vendor negotiations. IPO proceeds are earmarked for long-term working capital needs, including bid deposits and performance guarantees.

Positive Outlook and Growth Guidance for FY27

Management provided optimistic guidance for FY27, expecting over 50% revenue growth, maintaining the strong performance of the last three fiscals. They anticipate sustaining an EBITDA margin between 12-13% and a PAT margin of 8-9%. Order inflow is expected to match the revenue growth to ensure continued revenue visibility. The company foresees growth from both transmission overhead and underground cabling segments, with numerous GETCO tenders for underground cabling in the pipeline.

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