Om Infra Limited , a leading player in the hydro infrastructure sector, has reported a substantial decline in its financial performance for the first quarter of fiscal year 2026. The company's results highlight the challenges faced by infrastructure firms due to delayed payments in government projects.

Financial Performance

The company experienced a sharp drop in revenue, which fell by 38% to Rs 104.00 crores in Q1 FY26 compared to Rs 170.00 crores in the same period last year. This decline has had a cascading effect on other financial metrics:

• EBITDA turned negative at Rs (1.00) crore, down from a positive Rs 17.00 crores in Q1 FY25.
• Profit Before Tax (PBT) swung to a loss of Rs 1.40 crores, compared to a profit of Rs 13.00 crores in the previous year.
• Net profit also turned negative, with a loss of Rs 1.00 crore, against a profit of Rs 13.00 crores in Q1 FY25.

Factors Behind the Decline

The primary reason for this financial deterioration is attributed to delayed payments in Jal Jeevan Mission projects and state fund constraints. The company reported that contractors have been awaiting dues for over nine months, significantly impacting cash flows and project execution.

Order Book and Recent Wins

Despite the financial challenges, Om Infra maintains a robust order book of Rs 2,684.00 crores, with a book-to-bill ratio of 3.31x. This strong order book provides some optimism for future revenue generation. Recent contract wins include:

1. A Rs 129.00 crores order from Uttar Pradesh Jal Nigam (Urban) for water infrastructure projects in Shahjahanpur.
2. A Rs 199.00 crores contract for the supply and installation of hydro-mechanical equipment for the 2,880 MW Dibang hydropower project in Arunachal Pradesh, awarded by NHPC.

Future Outlook

The management of Om Infra remains optimistic about the company's prospects:

• They are targeting an order inflow of Rs 2,000.00 crores for FY26, with Rs 328.00 crores already achieved in Q1.
• The company expects the payment situation to improve from the first half of FY26 onwards.
• Om Infra is focusing on expanding its footprint in water infrastructure, hydro-mechanical, and pumped storage projects.

Government Initiatives

The company stands to benefit from recent government initiatives:

• The Central Government has allocated Rs 67,000.00 crores to the Jal Jeevan Mission in the Union Budget, with the program extended until 2028.
• The suspension of the Indus Water Treaty is expected to accelerate the development of hydroelectric projects in border regions, potentially boosting hydro-mechanical order inflows for the company.

Corporate Update

In a separate announcement, Om Infra Limited has informed the stock exchanges of a change in its registered office address. Effective August 20, 2025, the company's registered office will be relocated to:

3rd Floor, A-Block, Om Tower, Church Road, M. I. Road, Jaipur - 302001

While Om Infra faces short-term challenges due to delayed payments, its strong order book and strategic focus on key government initiatives in the water and hydro power sectors suggest potential for recovery in the coming quarters. Investors and stakeholders will be closely watching for improvements in the payment cycle and the company's ability to convert its robust order book into revenue.

Om Infra Limited , a prominent player in the engineering and infrastructure sector, has announced its unaudited financial results for the first quarter, along with significant new order wins totaling Rs 326.00 crore.

Financial Performance

The company reported a mixed set of results for Q1:

On a standalone basis, Om Infra Limited achieved a revenue of Rs 99.78 crore and a net profit of Rs 0.99 crore. However, the consolidated results paint a different picture, with revenue at Rs 104.34 crore but a net loss of Rs 0.98 crore.

New Order Wins

The company has secured two significant orders, bolstering its order book:

1. Dibang Hydro Project: A prestigious contract valued at Rs 199.00 crore for the supply and installation of Hydro-Mechanical (HM) components for the 2,880 MW Dibang Hydro Project in Arunachal Pradesh. This project is touted as the largest hydropower project undertaken in India to date.

2. Uttar Pradesh Water Distribution Project: A water distribution project in Shahjahanpur, Uttar Pradesh, valued at Rs 127.00 crore. The company has already commenced execution of this project.

Future Outlook

Om Infra Limited anticipates improved execution in the coming quarters, particularly from projects under the Jal Jeevan Mission in Rajasthan and Uttar Pradesh. The management expects:

• Accelerated progress in Rajasthan Jal Jeevan Mission projects due to recent fund allocations.
• Improved execution momentum in Uttar Pradesh Jal Jeevan Mission projects from the second quarter onwards.

Auditor's Concerns

The company's auditors have raised several points of concern:

1. Unavailability of financial records from the Nepal branch, affecting revenue verification of Rs 10.31 crore.
2. Missing internal audit reports for the quarter.
3. Unreviewed financial results of three joint ventures with a total revenue of Rs 1.27 crore.

These issues have led to a modified opinion from the auditors, highlighting the need for improved financial reporting and record-keeping practices.

Management's Commentary

Dharam Prakash Kothari, Chairman of Om Infra Limited, stated, "The new order wins, especially the Dibang Hydro Project, significantly strengthen our presence in the hydro-mechanical segment. We anticipate improved performance in the coming quarters as execution picks up pace in our water infrastructure projects."

Om Infra Limited's mixed Q1 results, coupled with substantial new orders and ongoing project executions, present a complex picture of the company's current position and future prospects. While the new contracts provide a positive outlook, addressing the auditors' concerns will be crucial for maintaining investor confidence and ensuring transparent financial reporting.