Om Power Transmission Ltd., a Gujarat-based power transmission infrastructure EPC company, is currently open for subscription with its IPO closing on April 13.
The company specialises in execution of high-voltage and extra-high voltage transmission lines, substations, and underground cabling projects on a turnkey basis, along with operation and maintenance services. Its EPC capabilities cover transmission lines from 11 kV to 400 kV and substations up to 220 kV. SBI Securities, which has reviewed the issue, recommends subscribing for a long-term investment horizon.
Issue
The IPO opens on April 9 and closes April 13. The price band is Rs 166–175 per share, with a face value of Rs 10. The total issue size is Rs 150 crore at the upper band, comprising a fresh issue of 75,75,000 shares and an offer for sale of 10,00,000 shares. The bid lot is 85 shares and multiples thereof, meaning the minimum retail investment at the upper band is Rs 14,875. Post-issue market cap is estimated at Rs 568–599 crore. Beeline Capital Advisors is the BRLM and MUFG Intime India is the registrar.
Promoter shareholding will decline from 92.3% pre-issue to 68.9% post-issue, with public float rising to 31.1%.
Objects of the Issue
The fresh issue proceeds will be used primarily for funding long-term working capital requirements (Rs 55 crore), repayment of outstanding borrowings (Rs 25 crore), and capital expenditure towards purchase of machinery and equipment (Rs 11.2 crore), with the balance going towards general corporate purposes.
What the Company Does
OPTL is a pure-play power transmission EPC company, operating across four business verticals — transmission line EPC projects, substation EPC projects, underground cable projects, and operation and maintenance services. Its client base is dominated by Public Sector Undertakings, which accounted for roughly 84% of the order book as of December 2025.
Until FY25, the company had executed all its projects within Gujarat. It is now diversifying into Rajasthan, Punjab, and the union territories of Dadra & Nagar Haveli and Daman & Diu. As of December 2025, Gujarat still accounts for about 79% of the order book, with Punjab at 12% and Rajasthan at 5%.
The order book as of December 2025 stood at Rs 744.6 crore across 58 projects — 51 EPC and 7 O&M contracts — with a book-to-bill ratio of 2.7x. Transmission line EPC projects make up the largest share at 69.7%, followed by substation EPC at 22.7%.
The company is well-positioned to ride strong sector tailwinds. India’s power generation and transmission market was valued at USD 125 billion in FY24 and is projected to reach USD 280 billion by FY30, growing at a CAGR of 14.4%.
Financials
| Particulars (Rs cr) | FY23 | FY24 | FY25 | 9M FY26 |
|---|---|---|---|---|
| Revenue | 120.2 | 182.8 | 279.4 | 274.5 |
| EBITDA | 11.9 | 14.5 | 35.7 | 34.2 |
| EBITDA Margin | 9.9% | 7.9% | 12.8% | 12.5% |
| PAT | 6.2 | 7.4 | 22.1 | 23.4 |
| PAT Margin | 5.2% | 4.1% | 7.9% | 8.5% |
| RoE | 14.4% | 14.6% | 30.4% | — |
| RoCE | 17.5% | 19.2% | 40.1% | — |
Revenue, EBITDA, and PAT have grown at a CAGR of 52%, 73%, and 88% respectively between FY23 and FY25. Margins have expanded meaningfully, with EBITDA margin improving from 9.9% to 12.8% and PAT margin from 5.2% to 7.9% over the same period. The 9M FY26 numbers already exceed full-year FY25 PAT, suggesting another strong year is underway. Return ratios are impressive, with RoCE at 40.1% in FY25. One note of caution: operating cash flow turned negative in 9M FY26 at Rs -37.4 crore, driven by elevated trade receivables of 191 days, a consequence of the heavy reliance on PSU clients who tend to pay slowly.
Valuation and Peer Comparison
At the upper band of Rs 175, the issue is priced at a P/E of 27.1x on FY25 earnings and 19.2x on annualised 9M FY26 earnings, on a post-issue basis. Compared to listed peer Advait Energy Transitions, which trades at 64.1x, OPTL looks reasonably valued. Rajesh Power Services — a closer comparable in terms of business profile — trades at 18.3x, putting OPTL at a slight premium, though the company’s growth trajectory and improving margins provide some justification for this.
Risks to Consider
The company’s bid win ratio has been declining steadily, from 46.1% in FY23 to 35.7% as of December 2025, raising questions about its ability to sustain order inflows at current pace. Nearly 79% of the order book remains concentrated in Gujarat, leaving the business exposed to any slowdown in state-level infrastructure spending. Trade receivable days have jumped sharply to 191 in 9M FY26, and with 84% of orders coming from PSUs, working capital pressure is a structural challenge that is unlikely to resolve quickly. Finally, the company is yet to establish a meaningful track record outside its home state, and execution in newer geographies carries its own risks.