| Om Power Transmission Limited | ||||||
| Ratings upgraded to 'Crisil BBB+ / Stable / Crisil A2 '; Rated amount enhanced for Bank Debt | ||||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has upgraded its ratings on the bank facilities of Om Power Transmission Limited (OPTL) to ‘Crisil BBB+/Stable/Crisil A2’ from ‘Crisil BBB/Stable/Crisil A3+’.
The upgrade reflects significant improvement in the financial risk profile of OPTL, driven by its initial public offering (IPO) comprising fresh issue of Rs 132.56 crore. The funds will be used towards capital expenditure (capex) of Rs 11.21 crore, repayment of loans of Rs 25 crore, working capital requirement of Rs 55 crore and for general corporate purposes, including IPO expenses. With the IPO proceeds being utilised towards working capital requirement, the company’s reliance on external debt and creditors to support working capital cycle will reduce significantly. Expected healthy cash accrual will enhance the liquidity profile over the medium term. The financial risk profile has further strengthened with strong networth and reduced dependence on external borrowings. The business risk profile has also been improving with continuous increase in scale of operations with the company booking revenue of Rs 274.5 crore till December 2025, driven by healthy orderbook of Rs 744.6 crore as of December 2025. The operating margin is healthy and expected to sustain at 12-13% over the medium term, backed by timely execution of expected orderbook.
The ratings continue to reflect the established track record of operations and healthy financial risk profile of the company. These strengths are partially offset by large working capital requirement and susceptibility to tender-based operations and operational delays due to external risks. |
Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of OPTL. |
Key Rating Drivers - Strengths Established track record of operations: The promoters have more than three decades of experience in the heavy electrical equipment and transmission line industry. Their strong understanding of the market dynamics and healthy relationships with suppliers and customers should continue to support the business. OPTL has successfully bagged contracts from various authorities including the Gujarat Energy Transmission Corporation Ltd (GETCO), aided by technical expertise of the promoters and longstanding associations with stakeholders. The company had orders worth of Rs 744.6 crore as of December 2025, providing adequate medium-term revenue visibility.
Healthy financial risk profile: Networth and gearing are estimated at Rs 130 crore and 0.2 time, respectively, as on March 31, 2026. The fresh issue of Rs 132.56 crore in the IPO in April 2026 will result in a sharp improvement in the capital structure, backed by increase in networth. Debt protection metrics were robust with interest coverage and net cash accrual to adjusted debt ratios improving from 6.15 times and 1.23 times, respectively, in fiscal 2025 to 8.9 times and 1.2 times, respectively, in fiscal 2026. The financial risk profile is expected to remain healthy in the absence of any major debt-funded capex plan over the medium term and IPO proceeds supporting working capital requirement of the company. |
Key Rating Drivers - Weaknesses Susceptibility to tender-based operations and operational delays due to external risks: Revenue and profitability entirely depend on the company’s ability to win tenders and receive timely approvals at various stages of billing. Amid the intense competition, entities bid aggressively to get contracts, which restricts the operating margin. Considering the nature of business and complex structure of project approvals and billing cycle, delays could occur at local level or weather conditions may hamper the pace of execution. The operating margin is estimated at 12-13% over the medium term. Crisil Ratings will continue to monitor the revenue growth and market position of OPTL.
Large working capital requirement: Operations are working capital intensive owing to the nature of business. Receivables tend to be large as a significant amount of billing occurs in the last quarter of fiscal. As on March 31, 2026, the gross current assets (GCAs) are estimated at 210-220 days; and are expected to remain in similar line over the medium term. With the IPO proceeds being utilised towards working capital requirement, the company’s reliance on external debt and payables to support working capital cycle will reduce significantly on a sustained basis. Improvement in the working capital cycle with better collections from its major customer, GETCO, remains monitorable. |
Liquidity Adequate Liquidity should remain supported by the ample surplus available in cash accrual and bank limit. Bank limit utilisation averaged at 73% for the 12 months through March 2026. Annual cash accrual is expected at Rs 35 crore against yearly debt obligation of Rs 1 crore over the medium term. The current ratio is estimated healthy at 1.80 times as on March 31, 2026. Strong gearing and moderate networth will also aid financial flexibility. The funds raised through the IPO for general corporate purposes and working capital will further cushion the liquidity profile. |
Outlook Stable OPTL will continue to benefit from the extensive experience of its promoters and its healthy order book and comfortable financial risk profile. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company OPTL was set up in 1994 as a proprietorship concern, OM Enterprise, and reconstituted as a private limited company, OM Power Transmission Pvt Ltd, on June 29, 2011, and transitioned into a public limited company in September 2025. OPTL is an electrical contracting company and undertakes engineering, procurement and construction (EPC) and operations and maintenance of transmission lines and substations up to 400 kilovolt, including industrial power distribution. The company is based in Ahmedabad (Gujarat) and is promoted by Kanu Patel, Kalpesh Patel and Vasantkumar Patel. OPTL is listed on the NSE and BSE on April 17, 2026. |
Key Financial Indicators
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
& - Bank guarantee limit is sublimit of Cash Credit Limit |
| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Criteria Details
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