Om infra Limited has received a credit rating downgrade from CARE Ratings, reflecting deteriorated financial performance and operational challenges in the current fiscal year. The infrastructure company, which specializes in hydro-mechanical and water supply projects, faces headwinds from delayed project execution and stretched liquidity conditions.

Rating Revision Details

CARE Ratings has revised the company's credit ratings across multiple facilities, marking a significant downgrade in its risk assessment:

The rating agency cited deterioration in financial performance and risk profile in 9MFY26 as the primary driver for the downgrade, particularly noting challenges in the execution of Jal Jeevan Mission projects due to delayed government approvals.

Financial Performance Decline

The company's financial metrics showed significant deterioration during 9MFY26, reflecting operational challenges and market conditions:

The decline in Total Operating Income was primarily attributed to slower execution of Jal Jeevan Mission projects in Q2FY26 and Q3FY26 due to extended monsoon conditions and lower release of funds by the government. The company's revenue is mainly derived from engineering, procurement and construction of hydro power, irrigation and water supply projects.

Operational Challenges and Strengths

Despite the rating downgrade, Om Infra maintains several operational strengths that support its market position. The company has an outstanding order book of approximately ₹2,500 crore as of December 31, 2025, equivalent to 3.8 times its total operating income in FY25. This order book includes Jal Jeevan Mission projects aggregating ₹1,350 crore, providing medium-term revenue visibility subject to timely fund releases.

However, the company faces significant challenges including elevated receivables of ₹277.92 crore as of December 31, 2025, comprising unbilled revenue and retention money. The average collection period has elongated from 84 days in FY24 to 143 days in FY25, contributing to working capital pressures.

Group Company Exposure and Liquidity Position

The rating agency highlighted concerns about the company's high exposure to group companies, which accounted for 58% of tangible net worth as of March 31, 2025. While this represents a marginal reduction from 61% in the previous year, the exposure remains substantial with significant concentration in Om Metal Consortium Private Limited and Bhilwara Jaipur Toll Road Private Limited.

The company's liquidity position is characterized as stretched, with Gross Cash Accruals of ₹9.25 crore in 9MFY26 against debt repayment obligations of approximately ₹8.00 crore in FY26. Fund-based limit utilization remained high at 95.61% for the trailing six months ended December 2025.

Rating Outlook and Sensitivities

CARE Ratings has maintained a stable outlook based on the experienced promoters and the company's strong market position with an established track record in executing hydro-mechanical projects. The rating agency identified several factors that could influence future rating actions, including improvement in scale of operations with sustained profitability margins and reduction in working capital cycle leading to better liquidity profile.

OM Infra Limited has announced the completion of Mr. Gopi Raman Sharma's tenure as Independent Director, marking a significant change in the company's board composition. The announcement was made through a corporate disclosure filed with both BSE and NSE on March 11, 2026.

Director Cessation Details

Mr. Gopi Raman Sharma's term as Independent Director concluded at the end of day on March 10, 2026. The cessation was communicated to stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Committee Position Changes

Following the completion of his directorship term, Mr. Sharma ceased to hold multiple key committee positions within the company. His departure resulted in changes across three important board committees that oversee critical governance functions.

The positions vacated include:

• Chairman of the Nomination & Remuneration Committee
• Chairman of the Stakeholders' Relationship Committee
• Member of the Audit Committee

Regulatory Compliance

The company has fulfilled all disclosure requirements under SEBI regulations, including the submission of detailed information as specified in SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The disclosure confirms that Mr. Sharma held no shares in the company and had no inter-se relationships with other directors or key managerial personnel.

Company Information

OM Infra Limited, formerly known as OM Metals Infraprojects Limited, operates from its registered office in Jaipur, Rajasthan. The announcement was signed by Vikas Kothari, Managing Director & CEO, and communicated to both major stock exchanges where the company's shares are listed.