Om Infra limited credit ratings downgraded after financial performance declines

CARE Ratings has downgraded Om Infra Limited's long-term bank facilities from CARE BBB; Stable to CARE BBB-; Stable, and its long-term/short-term bank facilities from CARE BBB; Stable / CARE A3+ to CARE BBB-; Stable / CARE A3. This revision comes as Om Infra experienced a significant decline in financial performance during FY25 and Q1FY26, with total operating income falling by approximately 38% from ₹1,065.10 crore in FY24 to ₹659.12 crore in FY25. PBILDT margin also contracted from 9.21% in FY24 to 4.11% in FY25.

The deterioration is attributed to a slowdown in the execution of Jal Jeevan Mission (JJM) projects due to delayed government funding and a reduction in budget allocation for FY25 and Q1FY26. Additionally, hydropower projects faced delays from natural calamities, pending approvals, and local disturbances. The company's average collection period elongated from 84 days in FY24 to 143 days in FY25, and gross current asset days increased from 151 days to 264 days during the same period.

Despite these challenges, Om Infra Limited maintains a healthy order book of ~₹2,660 crore as of June 30, 2025, providing revenue visibility for the medium term. The management anticipates improved operational and financial performance from Q3FY26, following the extension of the JJM scheme and increased fund allocation in the Union Budget for 2025-2026.