Infomerics upgrades Om Infra Ltd rating following improvement in capital and healthy orderbook

Infomerics upgrades Om Infra Ltd rating following improvement in capital and healthy orderbook​

Om Infra Limited, formerly known as Om Metals Infraprojects Limited, has received credit ratings from Infomerics Valuation and Rating Pvt. Ltd. (Infomerics) regarding its bank loan facilities. The new assignments reflect an upgrade compared to the company's previous rating issued by CARE Ratings Limited.

Infomerics assigned the long-term rating of IVR BBB- with a Stable outlook, and the short-term rating of IVR A3 for Om Infra Ltd's bank facilities. This rating assignment was conducted on July 10, 2026.

The total value of the bank loan facilities rated is Rs. 718.96 Crore. The details of the newly assigned credit ratings are as follows:


Additionally, the company has short-term bank facilities rated at IVR A3.

Analyst Rationale and Outlook​

Infomerics stated that the rating reflects Om Infra Limited's comfortable capital structure and healthy orderbook. The ratings also took into account the experienced promoters and professional management overseeing the operations.

However, Infomerics noted that strengths are partially offset by a deterioration in the scale of operations, coupled with working capital intensive operations and execution risk.

The stable outlook given by IVR reflects the agency's expectation that Om Infra Ltd will maintain steady growth supported by its healthy order book while retaining a comfortable capital structure and adequate debt protection metrics.

Key Financial Highlights​

While the company reported a decline in Total Operating Income (TOI) for FY26, EBITDA margin improved due to lower raw material consumption cost. The financial performance data shows:

Operational Strengths and Concerns​

The Infomerics ratings report highlighted several key factors influencing the rating:

Strengths:

• Comfortable Capital Structure: The company's ATNW increased from Rs. 506.12 Crore as of March 31, 2025, to Rs. 584.83 Crore as on March 31, 2026. The overall gearing stood at a comfortable 0.16x as of March 31, 2026.
• Healthy Orderbook: As of March 31, 2026, the company held an outstanding order book estimated at approximately Rs. 2,106.61 crore, which is about 4.49 times its FY26 total operating income. The order book includes projects related to EPC contracts for dam and reservoir construction, hydromechanical works, hydropower, and irrigation infrastructure.
• Experienced Management: C. P. Kothari, the company's promoter, has nearly five decades of experience in hydro and irrigation engineering projects.

Weaknesses and Risks:

• Decline in Scale: Total Operating Income (TOI) declined by 29.70%, moderating to Rs. 468.42 crore in FY26 from Rs. 666.28 crore in FY25, mainly due to slower execution of Jal Jeevan Mission (JJM) projects caused by lower fund releases.
• Working Capital Intensity: The operating cycle stood at 227 days in FY26, an increase from 143 days in FY25. The debtor collection period was reported at 230 days in FY26.

Financial Indicators and Liquidity​

The company maintains adequate liquidity, with cash flow from operations projected to remain sufficient in FY27. The company also had unencumbered cash and cash equivalent balances of Rs. 18.02 Cr as on March 31, 2026.

The rated instruments under the long-term category include a Term Loan sized at 0.41 (Rs. Crore) maturing in March 2028, and WCTL of 6.55 (Rs. Crore) due in February 2029.

OMINFRAL Stock Price Movement​

OM INFRA LIMITED shares shed value today, settling down 1.59% to close at ₹89.95 after trading in the market.The stock moved with a total volume of 63,588 shares throughout the day's session.