OM Infra Limited received a credit rating of IVR BBB-/Stable from Infomerics. However, its total operating income fell to ₹468.42 crore in FY26, mainly due to delays in government projects. Despite this, the company improved its EBITDA margin.
OM Infra Limited: Credit Rating Improved Amidst Revenue Dip
OM Infra Limited's total operating income for the fiscal year 2026 stood at ₹468.42 crore, a decrease from ₹666.28 crore in FY2025. The company's Profit After Tax (PAT) also declined to ₹21.80 crore in FY2026 from ₹36.10 crore in FY2025.
Reader Takeaway: Credit rating upgrade positive, but revenue decline and project execution risks remain key watch points.
What just happened
Infomerics Valuation and Rating Pvt. Ltd. has assigned OM Infra Limited a long-term credit rating of IVR BBB-/Stable and a short-term rating of IVR A3 for its bank loan facilities totaling ₹718.96 crore. This marks an improvement from previous ratings. The company's outstanding order book was ₹2,106.61 crore as of March 31, 2026.
However, the company's Total Operating Income (TOI) declined to ₹468.42 crore in FY2026, down from ₹666.28 crore in FY2025. Profit After Tax (PAT) also decreased to ₹21.80 crore from ₹36.10 crore.
Why this matters
The improved credit rating signals enhanced confidence from rating agencies in OM Infra's financial stability and future prospects, potentially easing borrowing costs. The healthy order book provides revenue visibility for approximately 4.49 times its FY2026 income. However, the significant drop in operating income highlights challenges in project execution and revenue generation.
The backstory
The decline in operating income was attributed by the company's management to slower execution of projects under the Jal Jeevan Mission, primarily due to delayed fund releases from government bodies. Despite the lower top-line, OM Infra managed to improve its EBITDA margin to 6.60% in FY2026 from 5.04% in FY2025, driven by cost efficiencies, specifically reduced raw material consumption.
What changes now
The 'Stable' outlook from Infomerics suggests the rating agency anticipates steady performance, supported by the robust order book and adequate debt management. This could positively influence the company's access to credit and its borrowing terms.
Risks to watch
Key concerns include the significant revenue decline and a prolonged operating cycle of 227 days, indicating high working capital intensity which could strain cash flows. Reliance on government projects, like Jal Jeevan Mission, introduces execution risk tied to unpredictable fund releases and project timelines.
Peer comparison
Information on peer comparison was not provided in the filing.
Context metrics (time-bound)
As of March 31, 2026, OM Infra Limited had an outstanding order book of ₹2,106.61 crore. For FY2026, Total Operating Income was ₹468.42 crore, EBITDA was ₹30.91 crore with a 6.60% margin, and PAT was ₹21.80 crore. The operating cycle was 227 days.
What to track next
Investors will be keen to observe OM Infra's progress in executing its substantial order book, its ability to manage working capital efficiently, and the impact of government fund releases on project timelines. Monitoring the company's performance in the upcoming quarters will be crucial to assess its recovery and growth trajectory.