Om Infra Limited has delivered impressive financial performance for the quarter ended December 31, 2025, showcasing strong profitability growth despite operational challenges in the infrastructure sector.

Financial Performance Overview

The company's standalone financial results demonstrate robust growth across key metrics for Q3FY26:

The company achieved a net profit of ₹607.49 lacs in Q3FY26, representing a significant 64.20% increase from ₹369.92 lacs recorded in the corresponding quarter of the previous year. This growth was driven by improved operational efficiency and better cost management.

Segment-wise Performance

Om Infra's business segments showed varied performance during the quarter:

The engineering segment, which forms the core of the company's operations, contributed ₹9,953.15 lacs to total revenue and generated a positive segment result of ₹946.32 lacs. The real estate segment faced challenges with reduced revenue and negative segment results.

Nine-Month Performance

For the nine months ended December 31, 2025, Om Infra maintained strong performance:

Operational Challenges and Outlook

The company highlighted significant challenges in project execution due to funding constraints in government infrastructure projects. According to management commentary, the government allocated ₹70,000 crores for Jal Jeevan Mission projects, but only ₹17,000 crores has been utilized, causing slower workflow.

Recent developments provide optimism for future performance:

• Uttar Pradesh government's commitment for faster fund release
• Union Budget 2026 allocation of ₹87,600 crores for Jal Jeevan Mission projects
• Gradual fund release from UP government for existing projects

Strategic Focus Areas

Om Infra is targeting expansion in specialized infrastructure segments:

• Hydro mechanical projects in hydropower sector
• Pumped storage projects
• Water infrastructure projects

These focus areas align with the government's emphasis on renewable energy and water security initiatives.

Financial Position

The company maintained a stable financial position with paid-up equity share capital of ₹963.04 lacs and reserves of ₹77,832.72 lacs. Key financial ratios indicate healthy operational metrics despite sector challenges.

Om Infra's Q3FY26 results demonstrate the company's resilience in navigating funding challenges while maintaining profitability growth, positioning it well for future opportunities in India's infrastructure development.

Om Infra Limited, a prominent player in the engineering and infrastructure sector, has reported mixed results for the second quarter of the fiscal year 2025-26. The company's financial performance showcases a significant improvement in profitability despite a substantial decline in revenue and several auditor qualifications.

Key Financial Highlights

Revenue Decline

Om Infra experienced a significant drop in its consolidated revenue, which fell to 1240.00 million rupees in Q2 FY2025-26, compared to 2380.00 million rupees in the same quarter of the previous year. This represents a substantial year-over-year decline of 47.90%.

Profit Surge

Despite the revenue setback, the company managed to boost its bottom line considerably. Net profit for the quarter increased to 70.00 million rupees, up from 39.00 million rupees in the corresponding period last year, marking a robust 79.50% year-over-year growth.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a decline, dropping to 67.00 million rupees from 173.50 million rupees in the previous year's quarter. Consequently, the EBITDA margin compressed to 5.42% from 7.28%, indicating pressure on operational efficiency.

Auditor Qualifications

The company's board meeting held on November 10, 2025, approved the standalone and consolidated unaudited financial results for the quarter and half year ended September 30, 2025. However, the auditor's review report contains several qualifications:

1. Nepal branch records were unavailable for audit, involving revenue of 19.70 million rupees.
2. Inadequate internal audit policies and financial controls were noted.
3. Unbilled revenue of 414.99 million rupees was reported without proper project authority approval.

Additionally, the financial statements include results from 9 joint operations consolidated on a proportionate basis, with some joint operations reviewed by other auditors.

Business Segments

Om Infra operates in three main segments: engineering, real estate, and road projects.

Future Outlook

The company is targeting to secure more hydro-mechanical projects in hydro power and pumped storage projects space, as well as water infrastructure projects. This strategy may help in diversifying revenue streams and potentially improving future performance.

Additionally, the company expects the current fiscal year 2025-26 to witness a faster pace in project execution, which was affected in 2024-25 due to factors such as elections, unprecedented monsoon, and heat waves.

Investors and stakeholders will be keenly watching how Om Infra navigates the challenges of revenue decline and auditor qualifications while maintaining its profitability in the coming quarters. The company's ability to secure new projects, improve operational efficiency, and address the concerns raised in the audit report will be crucial for its future growth trajectory in the competitive infrastructure sector.