Om Infra Reports Mixed Q2 Results: Net Profit Surges 79% Despite Revenue Decline and Auditor Qualifications

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

Particulars (in million rupees)	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Revenue	1240.00	2380.00	-47.90%
Net Profit	70.00	39.00	+79.50%
EBITDA	67.00	173.50	-61.40%
EBITDA Margin	5.42%	7.28%	-186 bps

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:

Nepal branch records were unavailable for audit, involving revenue of 19.70 million rupees.
Inadequate internal audit policies and financial controls were noted.
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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.59%	-1.91%	-3.85%	-18.10%	-18.17%	+545.23%

Om Infra Limited , a company listed on both the Bombay Stock Exchange and the National Stock Exchange, has announced the appointment of Mr. Kamlesh Kumar Singh as a Non-Executive Independent Director. The appointment, approved by shareholders at the company's 53rd Annual General Meeting (AGM) on September 29, 2025, marks a significant addition to Om Infra's board.

Appointment Details

Mr. Singh's tenure as an Independent Director is set for a five-year term, commencing from September 29, 2025, and concluding on September 28, 2030. This appointment aligns with the company's commitment to strong corporate governance and brings valuable expertise to the board.

Professional Background

Kamlesh Kumar Singh brings a wealth of experience to Om Infra Limited:

Over 43 years of experience in the power sector, water resources, and infrastructure development
Civil Engineering professional with a distinguished career in government Public Sector Undertakings (PSUs)
Held senior positions in notable organizations:
- NHPC (National Hydroelectric Power Corporation)
- NTPC (National Thermal Power Corporation)
- SJVNL (Satluj Jal Vidyut Nigam Limited)
- UJVNL (Uttarakhand Jal Vidyut Nigam Limited)
Retired from NTPC as Regional Executive Director in 2021

Expertise and Contributions

Mr. Singh's extensive background includes:

Strategic project execution and operation management
Contracts and financial management
Specialized expertise in hydro project execution

His experience spans roles such as Chief Engineer, Head of Project & Region, CEO of Joint Ventures/Subsidiaries, and Director in various PSUs.

Corporate Governance Compliance

Om Infra Limited has confirmed that Mr. Singh is not debarred from holding the office of Director by any SEBI order or other regulatory authority. This appointment adheres to the regulations set forth by the Securities and Exchange Board of India (SEBI) under the Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Board Composition

It's worth noting that Mr. Singh does not hold any equity shares in Om Infra Limited, nor does he hold directorships in any other listed entities. This appointment enhances the independent oversight of the company's operations and strategy.

The addition of Kamlesh Kumar Singh to Om Infra Limited's board brings valuable industry insights and leadership experience, potentially strengthening the company's position in the infrastructure and power sectors.