Om Power Transmission Limited has received an order from the State Tax authority in Ahmedabad dropping proceedings related to an alleged ineligible Input Tax Credit (ITC) of ₹1.12 crore for FY23.

The Office of the Assistant Commissioner, Ghatak 5 (Ahmedabad), concluded that the company had not availed any ineligible or excess ITC during the financial year 2022-23. Consequently, the company is not required to make any payment towards the disputed tax amount or the associated interest and penalty of ₹89.22 lakh.

Order Details and Financial Impact

The disclosure was made to the National Stock Exchange and BSE under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The order was dated September 21, 2026, and received by the company on September 22, 2026.

The authority examined the reply and submissions made by Om Power Transmission. Upon verification, it was observed that the allegations regarding ineligible/excess availment of ITC were unfounded. As a result, the proceedings were dropped entirely.

What the Numbers Show

The dropping of these proceedings eliminates a contingent liability totaling approximately ₹2.01 crore (₹1.12 crore in principal tax plus ₹89.22 lakh in interest and penalty). While the company stated there is no material impact on its financial or operational activities, the resolution removes a significant near-term cash outflow risk associated with the FY23 tax assessment. This outcome confirms the validity of the company's ITC claims for that period, as verified by the state tax authority.

Om Power Transmission has secured a confirmed work order valued at Rs 40.69 crore from Hild Projects Private Limited. The scope involves the design, equipment supply, civil construction, electrical equipment installation, testing, and commissioning of a 220kV AIS Switchyard for a 600 MW NTPC Solar Power Plant at Bhuj. The project timeline is set at 10 months from the date of the letter of award.

WHAT HAPPENED

The filing confirms a significant order awarded on 17 September 2026. The scope includes critical infrastructure work for a solar power plant switchyard. The order was disclosed to exchanges shortly after the award date.

ORDER IN FINANCIAL CONTEXT

As a microcap entity with a market capitalization of Rs 572.92 crore (as of 17 Sep 2026), a Rs 40.69 crore contract represents a substantial incremental revenue opportunity. The total disclosed order book reflects sustained client interest across multiple entities, including domestic private players and state utilities.

COMPANY ORDER TRACK RECORD

Order inflow velocity shows continued activity in Q2FY27. Q1FY27 saw significant activity with four orders totaling Rs 126.90 crore. Q2FY27 has now recorded four orders totaling Rs 159.67 crore, including this latest win from Hild Projects Private Limited.

EXECUTION AND REVENUE QUALITY

The provided fundamental context reports trailing twelve-month consolidated revenue, net profit, and operating profit margin at zero. This suggests either a reporting lag or a specific accounting period transition. Consequently, there is no recent quarterly trend visible to assess margin quality or execution stress immediately.

REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE

Based on standalone annual data, revenue grew by +51.5% in FY24 and further accelerated to +52.7% in FY25. This historical trajectory indicates that past order books have successfully converted into substantial top-line expansion.

WORKING CAPITAL AND EXECUTION CAPACITY

Balance sheet and cashflow data are not provided in the input, preventing a detailed assessment of liquidity ratios. Without visibility into operating cashflows, it is unclear whether the company is generating sufficient internal funds to support the working capital requirements of these execution cycles.

WHAT TO WATCH

• Execution timeline: The 10-month completion window for the 220kV switchyard project requires efficient resource allocation.
• Revenue recognition lag: With TTM revenue currently showing as zero, the key metric is the first quarter where these orders contribute to reported sales.
• Client diversification: Hild Projects Private Limited joins Gujarat Energy Transmission Corporation Limited and SAEL Industries Limited as key clients.
• Margin quality: Switchyard projects often have different margin profiles compared to underground cable projects.