| 08 Apr 2026 18:10 | | Om'Power'Transmission | | Builds'power'infrastructure | Om'Power
Transmission,'promoted'by'Kalpesh'Dhanjibhai'Patel,'Kanubhai'Patel'and
Vasantkumar'Narayanbhai'Patel,'is'an'engineering,'procurement,'and'construction
company'in'power'transmission'infrastructure'segment'with'over'14'years'of
experience.'Its'expertise'lies'in'the'execution'of'high-voltage'and'extra-high
voltage'transmission'lines,'substations'and'underground'cabling'projects
delivered'on'a'turnkey'basis,'encompassing'design,'engineering,'supply,
erection,'installation,'testing,'commissioning,'and'comprehensive'O&M
services.'Its'EPC'capabilities'extend'to'transmission'lines'ranging'from'11
kilovolts'to'400'kV'and'substations'up'to'220'kV.'As'of'December'31,'2025,'it
is'operating'and'maintaining'124'substations.
Since
commencement'of'its'operations'in'2011'the'company'have'commissioned
transmission'lines,'substations'and'underground'cables,'covering'in'aggregate
over'1,000'circuit'kilometers'of'transmission'lines'and'11'substations
respectively'in'the'State'of'Gujarat.'
During
the'nine'months'period'ended'December'31,'2025,'and'the'last'three'fiscals,'the
company'have'completed'EPC'works'aggregating'to'more'than'500'CKM'of
transmission'lines,'and'underground'cables,'and'4'substations.'
While
its'business'has'historically'been'concentrated'in'the'State'of'Gujarat,'the
company'have'recently'expanded'operations'to'the'states'of'Rajasthan'and'Punjab
along'with'union'territory'of'Dadra'and'Nagar'Haveli'and'Daman'and'Diu,'having
secured'EPC'project'awards'in'these'states'and'union'territory.
Its
client'base'comprises'(i)'public'sector'undertakings'such'as'state'utilities;'and
(ii)'private'clients'such'as'renewable'energy'developers,'corporate'and
industrial'clients,'and'infrastructure'operators.'Of'the'FY25'and'9mFY26
revenue'about'74.92%'and'87.29%,'respectively,'came'from'PSUs'and'balance'from
private'sector'clients.'
The'unexecuted
order'book'as'of'December'31,'2025,'amounted'to'Rs'744.6027'crore'[transmission
line'EPC'projects'Rs'518.8943'crore;'substation'EPC'Rs'169.2070'crore;
underground'cabling'Rs'29.0951'crore'and'O&M'Rs'27.4063'crore]'spread
across'58'projects'[30'transmission'line
EPC'projects;'13'substation'EPC'projects;'8'underground'cabling'projects'and'7
O&M'projects].'Of'the'order'book
ended'December'2025,about'83.74%'is'from'PSUs'and'balance'16.26%'from'private
sector'clients.'About'79.13%'of'the'order'book'as'end'of'Dec'2025'is'from'the
state'of'Gujarat,'11.88%'from'Punjab,'4.51%'from'Rajasthan'and'4.48%'from'UT'of
Dadra'&'Nagar'Haveli'and'Daman'&'Diu.'
Business
of'the'company'is'primarily'dependent'on'tenders'from'public'sector
undertakings,'which'account'for'approximately'83.74%'and'84.21%'in'9mFY26'and
FY25,'respectively.'
The'Issue,'Objects'of'the'Issue
The
Offer'comprises'fresh'issue'of'7575000'equity'shares'and'an'offer'for'sale'of
1000000'equity'shares'of'Rs'10'face'value'each.'The'offer'for'sale'is'entirely
by'promoters'[Kalpesh'D'Patel'350000'shares;'Kanubhai'Patel'350000'shares'and
Vasantkumar'N'Patel'300000'shares].'
Of'the
net'proceeds'from'fresh'issue,the'company'propose'to'utilize'Rs'11.2094'crore
towards'funding'of'capital'expenditure;'Rs'25'crore'towards'repay/pre-payment
in'full'or'part'of'certain'borrowing'availed'by'the'company,'Rs'55'crore
towards'funding'working'capital'requirements'and'balance'for'general'corporate
purpose.'
As'of'December
31,'2025,'the'company'had'total'borrowings'of'Rs'38.4675'crore.'
Strengths
Successful
track'record'of'delivering'high-voltage'and'extra-high'voltage'transmission
lines,'substations'and'underground'cabling'projects'over'the'last'14'years.
Strong'order
book'(translating'to'about'2.66'times'of'FY2025'sales)'spread'across'business
verticals.
India‘s'power
T&D'infrastructure'is'expected'to'grow,'supported'by'government'initiatives
and'increasing'electricity'demand.'GoI'plans'to'add'approximately'17,500'ckm'of
transmission'lines'and'80,000'MVA'of'transformation'capacity'annually'over'the
next'three'years.
Weaknesses
Project
management'and'turnkey'EPC'contracts'(including'those'for'power'transmission
and'distribution),'have'long'execution'periods'and'time'overruns'as'well'as
other'associated'risk'such'as'delay'in'acquisition'of'private'lands'or'rights
of'way'(RoW),'environmental'clearances,'resolution'of'associated'land'issues,
financial'closure'of'PPP'projects.'
Substantially
dependent'on'tenders'being'floated'by'government'authorities,'public'sector
undertakings'and'utilities'and'thus'any'delays'in'tenders'released'or'no
tenders'released'by'such'entities'may'have'a'material'adverse'effect'on'the
business'and'results'of'operations.'
Face
certain'competitive'pressures'from'the'existing'competitors'and'new'entrants'in
both'public'and'private'sector.'Increased'competition'and'aggressive'bidding'by
such'competitors'are'expected'to'make'ability'of'the'company'to'procure
business'in'future'more'uncertain'which'may'adversely'affect'the'business.'
Projects
undertaken'through'a'joint'venture'may'be'delayed'on'account'of'the'performance
of'the'joint'venture'partner.
Liable
for'any'delay'or'default'of'sub-contractor,'through'him'a'part'of'the'work'of
the'contract'is'executed.'
There
are'certain'defaults/'delay'in'payment'of'statutory'dues.
Project
portfolio'and'revenue'generation'has'historically'been'concentrated'in'the
state'of'Gujarat.
Business
of'the'company'typically'requires'significant'amounts'of'working'capital'and
historically,'business'growth'has'been'dependent'on'high'working'capital
requirements.
Company
has'delayed'in'complying'with'certain'statutory'provisions'under'the'Companies
Act,'2013'and'the'Foreign'Exchange'Management'Act,'1999.'Such'delayed
compliance'/lapses'may'attract'certain'penalties.
Commodity
Price'Fluctuations'are'a'critical'threat'to'EPC'contractors,'especially'in'the
power'sector'where'infrastructure'projects'rely'heavily'on'materials'like
steel,'copper,'aluminum,'and'cement.
Complexity
in'project'execution'in'remote'and'challenging'terrains'may'adversely'affect
timelines'and'costs.
Contracts
with'government'entities'usually'contain'terms'that'favour'the'government
customers,'who'may'terminate'contracts'prematurely'and'impose'restrictions'on'the
company'from'procurement'of'any'future'contracts'under'various'circumstances
beyond'its'control.
Top
1/3/5/10'customers'contribute'to'more'than'50.41%/77.30%/86.05%/95.68%in'FY25
and'71.55%/86.08%/91.37%/97.65%'in'9mFY26,'respectively.
Have
experienced'negative'net'cash'flow'from'operating'activities'in'the'past'years.
Related
party'transaction'as'a'percentage'of'revenue'from'operations.
Have
been'certain'instances'of'non-compliances'under'the'Companies'Act'and'due'to
certain'procedural'defaults'by'the'company'in'the'past,'and'it'have'filed'a'suo
moto'adjudication'application'with'the'RoC'for'adjudication'of'these
non-compliances.'
Operating
results'may'fluctuate'from'quarter-to-quarter'due'to'seasonality,'with'a
noticeable'concentration'of'activities'toward'the'third'and'fourth'quarters'of
the'financial'year.
Valuation
Consolidated
re-stated'revenue'for'the'fiscal'ended'March'2025'stood'higher'by'53%'to'Rs'279.44
crore.'With'OPM'expand'by'490'bps'to'12.8%,'operating'profit'leaped'by146%'to
Rs'35.66'crore.'Finally,'net'profit'was
up'by'198%'to'Rs'22.08'crore.'
For'the'nine
months'ended'December'2025,'net'profit'was'Rs'23.37'crore'on'sales'of'Rs'274.54
crore.'
The'EPS
for'FY2025'on'expanded'equity'(on'the'upper'price'band)'was'Rs'6.4'and
annualised'EPS'for'FY26'was'Rs'9.1.'The'PE'on'upper'price'band'works'out'to'27.3
times'on'EPS'for'FY25'and'by'19.2'times'that'on'annualised'EPS'for'FY26.'
Consolidated
total'borrowings'as'of'Dec'31,'2025,'stood'at'Rs'38.47'crore.The'company
proposes'to'utilize'Rs'25'crore'of'the'net'proceeds'from'fresh'issue'towards
prepayment'of'the'borrowing.'Repayment'of'Rs'25'crore'will'bring'the'borrowings
down'by'about'65%'resulting'in'lower'interest'outgo'and'boosting'the'net-profit
substantially.'The'annualized'EPS'for'9mFY26'works'out'to'Rs'9.8'if'65%'of'its'interest
cost'is'removed,'keeping'all'other'items,'including'tax'rate,'same.'The
re-worked'P/E'at'the'upper'price'band'moderates'to'17.9'times'of'its'annualized
9mFY26'EPS.
In
comparison,'Advait'Energy'Transition,'Viviana'Power'Tech,'Vikran'Engineering
quotes'at'a'TTM'PE'of'40.2'times,'27.4'times'and'20.8'times.'Bajel'Projects,'KEC
International,'Kalpataru'Projects,'Techno'Electric'and'Skipper'also'are'in
similar'line'of'business'i.e'Power'Transmission'EPC'but'not'comparable'in'size
and'geographical'presence'and'capabilities.'Bajel'Projects,'KEC'International,'Kalpataru
Projects,'Transrail,'Techno'Electric'and'Skipper'quotes'at'a'PE'of'110'times,
19.4'times,'22'times,'15.3'times,'25.9'times'and'21.3'times,'respectively,'of
their'TTM'EPS'for'the'period'ended'December'2025.'
'
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''Om'Power
''Transmission':'Re-stated'Consolidated
''Financials
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''2303'(12)
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''2403'(12)
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''2503'(12)
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''2512'(9)'
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''Sales
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''120.24
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''182.76
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''279.44
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''274.54
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'
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''OPM'(%)
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''9.9
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''7.9
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''12.8
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''12.5
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''OP
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''11.93
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''14.47
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''35.66
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''34.24
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'
'
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''Other
''income
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''
''1.47
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''
''1.63
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''
''2.21
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''
''1.96
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'
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''PBIDT
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''
''13.40
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''16.10
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''37.87
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''
''36.20
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'
'
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''Interest
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''
''4.40
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''
''5.24
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''
''6.00
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''5.34
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''PBDT
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''9.00
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''10.86
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''31.86
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''30.86
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''Depreciation
'' |
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''1.32
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''
''1.32
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''
''1.19
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''
''1.50
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''PBT
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''7.68
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''9.53
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''
''30.67
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''
''29.36
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''EO'Exp
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''
''0.00
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''
''0.00
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''
''0.00
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''
''0.00
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'
'
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''PBT'after
''EO
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''
''7.68
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''
''9.53
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''
''30.67
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''
''29.36
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'
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''Tax
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''
''1.44
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''
''2.12
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''
''8.59
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''
''6.00
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'
'
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''PAT'from
''Continuing'Biz
'' |
''
''6.24
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''
''7.41
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''
''22.08
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''
''23.37
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'
'
''
''Share'of'Profit
''from'Associates
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''
''0.00
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''
''0.00
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''
''0.00
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''
''0.00
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'
'
''
''PAT'from
''Continuing'Biz
'' |
''
''6.24
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''
''7.41
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''
''22.08
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''
''23.37
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'
'
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''Minority
''Interest
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''
''0.00
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''
''0.00
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''
''0.00
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''
''0.00
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''Net'profit
'' |
''
''6.24
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''
''7.41
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''
''22.08
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''23.37
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''EPS'(Rs)*
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''
''1.8
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''
''2.2
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''
''6.4
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''
''9.1
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'
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''*'on'post
''IPO'fully'dilluted'equity'(on'upper'price'band)'of'Rs'34.25'crore.'Face
''Value:'Rs'10
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'
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''EPS'is
''calculated'after'excluding'EO'and'relevant'tax
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''Figures'in
''Rs'crore
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''Source:
''Capitaline'Corporate'database'
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''Om'Power
''Transmission':'Issue'Highlights
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''Fresh
''Issue(in'equity'share'nos.)
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''7575000
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'
'
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''Offer'for
''sale'(in'equity'share'nos.)
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''
''1000000
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'
'
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''Price'band
''(Rs.)'
'' |
''
''
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'
'
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'''Upper
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''175
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'
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'''Lower
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''166
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''Post-issue
''equity'(Rs'crore)
'' |
''
''34.25
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'
'
''
''Post-issue
''promoter'(including'promoter'group)'stake'(%)
'' |
''
''68.93
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'
'
''
''Minimum
''Bid'(in'nos.)
'' |
''
''85
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'
'
''
''Issue'Open
''Date
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''09-04-2026
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'
'
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''Issue
''Close'Date
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''13-04-2026
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'
'
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''Listing
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''BSE,'NSE
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'
'
''
''Rating
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''
''43'/100
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'
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