Om Power Transmission

• Om Power Transmission is coming out with a 100% book building; initial public offering (IPO) of 85,75,000 shares of face value Rs 10 each in a price band Rs 166-175 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on April 09, 2026 and will close on April 13, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 16.60 times of its face value on the lower side and 17.50 times on the higher side.
• Book running lead manager to the issue is Beeline Capital Advisors.
• Compliance Officer for the issue is Hardikkumar Jitendrabhai Patel.

Profile of the company

The company is a power transmission infrastructure engineering, procurement, and construction (EPC) company. Its expertise lies in the execution of high-voltage (HV) and extra-high voltage (EHV) transmission lines, substations and underground cabling projects delivered on a turnkey basis, encompassing design, engineering, supply, erection, installation, testing, commissioning, and comprehensive operation and maintenance (“O&M”) services. Since commencement of its operations in 2011 in the State of Gujarat, it has commissioned transmission lines, substations and underground cables, covering in aggregate over 1,000 circuit kilometers (CKM) of transmission lines and 11 substations respectively. Its EPC capabilities extend to transmission lines ranging from 11 kilovolts (kV) to 400 kV and substations up to 220 kV.

Its operations are underpinned by a strong focus on quality, safety, and environmental management. It is certified under ISO 9001:2015 (Quality Management), ISO 45001:2018 (Occupational Health & Safety Management), and ISO 14001:2015 (Environmental Management). Additionally, its technical credentials are endorsed by the ‘AA Class’ certification from GETCO, authorizing it to undertake erection of transmission lines and towers up to 400 kV and substations up to 220 kV.  In recognition of its execution capabilities and reliability, it received recognition as ‘Best EPC Company’ consecutively for two financials years i.e. 2015-17 at Gujarat Energy Transmission Corporation’s (GETCO’) Vendor Conference, reflecting its growing reputation within regional transmission utility.

Proceed is being used for:

• Funding of capital expenditure requirements of the company towards purchase of machinery and equipment
• Pre-payment/ re-payment, in part or full, of certain outstanding borrowings availed by the company
• Funding long-term working capital requirement of the company
• General corporate purposes

Industry overview

India’s electricity industry is separated in three different segments: (i) Electricity Generation; (ii) Transmission; and Distribution. India’s electricity landscape is characterized by its vast, diverse, and rapidly evolving infrastructure that supports one of the world’s largest and most complex power systems. The country’s electricity ecosystem is shaped by a mixed energy basket, including thermal, hydro, nuclear, and a growing share of renewable energy sources. With growing industrialization, urbanization, and rural electrification, the demand for electricity continues to rise steadily, pushing the sector towards capacity expansion, technological upgrades, and policy reforms. India's power sector has undergone significant transformation, particularly in terms of increasing private sector participation, regulatory structuring, and focus on sustainability.

India's electricity generation performance has demonstrated a steady growth trend over recent fiscal years, reflecting expanding generation capacity alongside rising electricity demand. Total electricity generation, measured in billion units (BU), exhibited a clear upward trajectory from FY 2019 to FY 2025, registering an overall Compound Annual Growth Rate (CAGR) of 4.8%. Generation stood at 1,376 BU in FY 2019, increased marginally to 1,389 BU in FY 2020, and moderated slightly to 1,382 BU in FY 2021. A stronger recovery was observed in FY 2022, with generation rising to 1,492 BU, followed by sustained growth to 1,624 BU in FY 2023.  The transmission and distribution (T&D) network forms the backbone of India’s power sector, facilitating the reliable transfer of electricity from generation plants to distribution entities across the country. The transmission segment is crucial for ensuring seamless evacuation of power and requires continuous expansion to match the pace of generation capacity addition. A T&D system typically consists of transmission lines, substations, switching stations, transformers, and distribution lines, all of which are interconnected into a grid structure that enables uninterrupted power flow.

India aims to achieve 500 GW of renewable energy capacity by 2030, which is pivotal for its clean energy transition. This ambitious target requires significant capital investment in power infrastructure to integrate renewable sources like solar and wind into the grid effectively. The National Electricity Plan (NEP) for 2023-32 outlines a strategic roadmap for enhancing transmission systems with a total investment of Rs 9.15 trillion. around Rs 4.2 trillion is earmarked for T&D projects between 2022 and 2027, with an additional Rs 4.9 lakh crore planned from 2027 to 2032. Furthermore, the Revamped Distribution Sector Scheme (RDSS) aims to transform the distribution sector with an outlay of Rs 2.5 trillion, focusing on reducing losses and enhancing infrastructure.

Pros and strengths

Track record of execution capabilities and timely completion of projects: The company has over 14 years of experience as a Gujarat-based power transmission infrastructure EPC company, with demonstrated capabilities in delivering HV and EHV transmission lines, substations and underground cabling projects. Its expertise covers the complete EPC value chain including design, engineering, procurement, supply, construction, installation, and commissioning of transmission lines ranging from 11 kV to 400 kV, as well as substation projects ranging from 66 kV to 220 kV. Its ability to deliver projects within schedule is further supported by standardized processes, efficient resource allocation, and continuous improvement in project execution methodologies. It strategically maintains inventories, equipment and machinery close to project sites to ensure better utilization and productivity.

Strong order book across business verticals: As of December 31, 2025, its order book consisted of 58 projects aggregating to Rs 74,460.27 lakh. The growth of its order book over the nine months period ended December 31, 2025 and the last three Fiscals has contributed to the scaleup of its operations and provided revenue visibility. The consistent growth in its order book is a result of its execution track record, its focus on maintaining quality standards in its construction and project execution skills. Until Fiscal 2025, its projects were executed entirely within the State of Gujarat, where it has built a strong track record.

Strong and consistent financial performance: The significant growth of its business in the last three Fiscals has contributed considerably to its financial strength. Its revenue from operations increasing from Rs 12,023.63 lakh in Fiscal 2023 to Rs 27,943.51 lakh in Fiscal 2025, representing a CAGR of 52.45%. Its profit for the year increased from Rs 623.72 lakh in Fiscal 2023 to Rs 2,208.48 lakh in Fiscal 2025, representing a CAGR of 88.17%. For the Nine months ended December 31, 2025 and for the Fiscal 2025, 2024, 2023, its EBITDA margins were 12.38%, 12.66%, 7.85%, and 9.80%, respectively, while its net profit margins were 8.45%, 7.84%, 4.02%, and 5.12% and, respectively. During nine-months period ended December 31, 2025, its Revenue from operations, Profit after taxes and EBITDA was Rs 27,454.28 lakhs, Rs 2,336.80 lakh and Rs 3,424.45 lakh, respectively. It strives to maintain its financial position with emphasis on having a strong balance sheet. Its financial performance over the past three Fiscals has strengthened its ability to bid for and execute larger and more complex projects in the future.

Experienced promoters and senior management team: The company has achieved significant growth and strong financial performance under the leadership and guidance of its Promoters, who bring deep domain expertise and extensive experience in the power transmission infrastructure sector. Kalpesh Dhanjibhai Patel, its Chairman and Executive Director, and Kanubhai Patel, its Managing Director, are the Promoters and founding members of the company who have been on the Board since its incorporation. Together, they bring over 31 years of experience each in electronic products and power transmission infrastructure, including extensive work as electrical contractors for government and private projects involving the development, operation, and maintenance of transmission lines, substations, and underground cabling. Additionally, Kanubhai Patel was awarded the ‘Outstanding Achievement Award for Business Excellence’ in 2017 by the All-India Achievers Foundation.

Risks and concerns

High dependence on PSU contracts: The company derives a substantial portion of its business from contracts awarded by public sector undertakings (PSUs), which account for around 83.74%, 84.21%, 87.48% and 65.77% of its order book for the nine months period ended December 31, 2025 and Fiscals 2025, 2024 and 2023, respectively. Any reduction in orders or adverse change in procurement policies of such PSUs, or its inability to win future bids with these entities, could materially and adversely affect its business, financial condition, cash flows, results of operations and growth prospects. In the event any one or more these customers cease to release tenders, its business may be adversely affected.

Customer concentration risk: A significant portion of its order book and revenue from operations have been attributable to, and will continue to be attributable to, certain key customers. The company is dependent on its top ten customers who contribute to more than 97.65%, 95.68%, 97.66% and 96.76% of its revenue from operations for the nine months period ended December 31, 2025 and in Fiscals 2025, 2024 and 2023, respectively and the loss of any of these customers or a significant reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.

Over-reliance on transmission line EPC business: The majority of its order book is from the transmission lines sector. The Transmission Line EPC segment is the largest contributor to the order book, accounting for 69.69% as of December 31, 2025; 47.72% in FY25; 52.48% in FY24; and 46.36% in FY23. Significant social, political, or economic changes in this sector could adversely affect its business, results of operations, financial condition, and cash flows. If it is unable to diversify and/or grow its order book by successfully securing projects in other verticals such as substation EPC projects and underground cable projects, or securing additional projects in the transmission lines sector, its business, profitability, and results of operations could be adversely impacted.

Risks associated with dependence on sub-contractors: It engages sub-contractors for various aspects of its projects, including specialized works and execution support at project sites. While sub-contracting allows it to optimize resources and manage multiple projects simultaneously, it also exposes it to risks relating to performance, quality, timeliness, pricing, and compliance by such subcontractors. Any delay, default, or deficiency in performance by sub-contractors, including failure to adhere to contractual obligations, quality standards, or applicable legal and safety requirements, could adversely affect the progress of its projects and result in cost overruns, delays in project completion, or reputational harm. Further, its ability to manage and supervise sub-contractors is subject to limitations, and despite its monitoring mechanisms, it cannot assure that sub-contractors will perform their obligations satisfactorily or within agreed timelines.

Outlook

Om Power Transmission is an Engineering, Procurement and Construction (EPC) Company offering a wide range of integrated end-to-end services including infrastructures project, power transmission and distribution, Extra High Voltage (EHV) substation including design, supply, civil works, construction, underground cabling, testing, Construction and Operation & Maintenance. On the concern side, it faces certain competitive pressures from the existing competitors and new entrants in both public and private sector. Increased competition and aggressive bidding by such competitors are expected to make its ability to procure business in future more uncertain which may adversely affect its business, financial condition and results of operations. Additionally, if any of its projects are terminated prematurely, it may not receive payments due to the company, which could adversely affect its business, financial condition and results of operation.  

The issue has been offering 85,75,000 shares in a price band of Rs 166-175 per equity share. The aggregate size of the offer is around Rs 142.34 crore to Rs 150.06 crore based on lower and upper price band respectively. Minimum application is to be made for 85 shares and in multiples thereon, thereafter. On performance front, the company’s total income increased substantially by 52.74% from Rs 18,439.45 lakh for Fiscal 2024 to Rs 28,164.77 lakh for Fiscal 2025. Its profit for the year increased by 197.94% from Rs 741.24 lakh for Fiscal 2024 to Rs 2,208.48 lakh for Fiscal 2025.

Meanwhile, it intends to continue exploring opportunities across other States in India, leveraging growth trends in the power transmission infrastructure. Its strategy is to gradually diversify its project portfolio across multiple geographies, thereby broadening its revenue base and mitigating risks associated with over-reliance on any single region. Further, it recognizes that diversification across geographies not only enables it to pursue a wider pool of tenders but also provides resilience against project-specific or state-specific risks. Supported by the expertise of its Promoters, execution capabilities, and financial strength, this strategy will enable it to capitalize on opportunities in the Indian power sector, strengthen its presence, and achieve sustainable growth over the long term.