Om Infra Limited , a leading player in the hydro infrastructure sector, has reported a significant decline in its financial performance for the first half 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 consolidated revenue, which fell by 44% to Rs 228.00 crores in H1FY26 compared to Rs 408.00 crores in the same period last year. This decline has had a cascading effect on other financial metrics:

• EBITDA margins dropped to 3% from 8% in H1FY25.
• The decline is primarily attributed to delayed payments in Jal Jeevan Mission projects.

Order Book and Recent Wins

Despite the financial challenges, Om Infra has secured new orders worth Rs 328.00 crores, including:

1. A Rs 199.00 crore hydro-mechanical contract for the 2,880MW Dibang hydropower project.
2. A Rs 129.00 crore water infrastructure project in Uttar Pradesh.

Future Outlook

Om Infra's management remains focused on expanding its footprint in water infrastructure, hydro-mechanical, and pumped storage projects. The recent order wins demonstrate the company's ability to secure significant contracts despite the challenging business environment.

Government Initiatives

The company may benefit from ongoing government initiatives:

• The Jal Jeevan Mission continues to be a key focus area for the government.
• Development of hydroelectric projects, particularly in border regions, may provide additional opportunities for Om Infra's hydro-mechanical business.

While Om Infra faces short-term challenges due to delayed payments, its ability to secure new orders worth Rs 328.00 crores suggests potential for recovery in the coming quarters. Investors and stakeholders will likely be closely watching for improvements in the payment cycle and the company's ability to convert its new orders 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.