IPO closes on 13 Apr'26
Om Power Transmission Ltd
Minimum Investment
₹ 14,875 / 85 shares
Our Verdict:
Neutral
- Om Power Transmission Ltd (OPTL) has delivered strong revenue and earnings growth over the past three years, supported by healthy return ratios and improving operating efficiency.
- From a valuation perspective, the IPO appears reasonably priced at around 19.5x FY25 earnings, given the firm's size and scale.
- The IPO represents a balanced opportunity within the small-cap EPC segment, supported by high capital efficiency, a sizeable order book and a relatively clean balance sheet.
- That said, the broader market environment remains cautious. Ongoing geopolitical tensions in the Middle East are weighing on investor sentiment and capital flows. Historically, IPOs launched during such periods tend to see muted listing performance.
- Overall, the investment case appears more compelling from a long-term perspective rather than for short-term listing gains.
- In view of the uncertain macro backdrop, investors may consider staying on the sidelines for now. A more prudent strategy may be to accumulate the stock post-listing, once it settles into a stable range and macro conditions improve.
About the company
Founded in
29 Jun'11
Managing director
Kanubhai Patel
- OPTL specialises in High Voltage (HV) and Extra High Voltage (EHV) transmission infrastructure. Its “AA Class” contractor certification from Gujarat Energy Transmission Corporation (GETCO) acts as a key entry barrier, enabling participation in large transmission projects while limiting competition.
- The company operates through two segments: (i) EPC Services – End-to-end execution of transmission projects, including surveys, route mapping and installation of 400 kV lines and 220 kV substations; (ii) Operations & Maintenance (O&M), which provides stable, recurring revenues and supporting cash flow stability during EPC tender slowdowns.
STRENGTHS
- Strong Financial Growth: OPTL has delivered strong financial performance, with revenue growing at a CAGR of 52% between FY23 and FY25. EBITDA and net profit have grown even faster, at CAGRs of 73% and 88% respectively, indicating improving operating leverage and profitability.
- Robust Order Book: As of December 31, 2025, OPTL had an order book of 58 projects with a total value of Rs 744.60 crore. This provides strong revenue visibility and supports medium-term growth prospects.
- Improving Return Ratios: OPTL has demonstrated significant improvement in capital efficiency. Return on Equity (RoE) increased from 15.18% in FY23 to 35.83% in FY25, while Return on Capital Employed (RoCE) improved from 15.45% to 41.76% over the same period.
- Healthy Profitability: OPTL maintains healthy profitability levels, with an EBITDA margin of 12.66% and a net profit margin of 7.84% as of FY25, reflecting stable operational performance.
RISK FACTORS
- Customer Concentration: OPTL derives a large share of revenue from a few clients. The top ten customers contributed 97.65% of revenue in 9MFY26 and 95.68% in FY25. Loss of any key customer or reduced purchases could materially impact revenues.
- Geographic Concentration: All projects in the last three fiscal years and 9MFY26 are located in Gujarat, exposing the business to regional economic, political and natural disruption risks. To mitigate this risk, the company has started executing projects in Punjab and Rajasthan.
- Dependence on PSUs: Around 84% of the order book is from PSU tenders. Any slowdown in tender issuance, delays or adverse policy changes could impact business growth.
- Declining Project Win Rate: The project win rate has declined from 46.05% in FY23 to 40.58% in FY25 and 35.71% in 9MFY26. A continued decline could affect future order inflows and revenue visibility.
- High Trade Receivables: Trade receivables were 52.10% of total income in 9MFY26 and 31.99% in FY25, with 7.82% and 9.57% respectively overdue for more than six months, which could strain liquidity if collections are delayed.
- High Employee Attrition: OPTL has experienced elevated employee turnover, with attrition at 32.15% in FY25 and peaking at 54.32% in FY24. Continued high attrition could disrupt operations and increase hiring and training costs.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 150 crore
Fresh Issue
₹ 133 crore
OFS
₹ 18 crore
Price range
₹ 166 - 175
Lot size
85 shares
Issue Objective
The net proceeds from the issue are proposed to be utilised for the following purposes:
- Purchase of machinery and equipment;
- Prepayment or repayment of certain outstanding borrowings;
- Funding long-term working capital requirements; and
- General corporate purposes.
Dates
Bidding open
9 Apr'26
Bidding close
13 Apr'26
Allotment date
15 Apr'26
Refund date
16 Apr'26
Listing
17 Apr'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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