Om Power Transmission Ltd IPO

Majority of the company's projects have been awarded through competitive bidding process. Failures to qualify for, compete or win new contracts could negatively impact its business, potentially affecting the company's financial condition, operational results, growth prospects, and cash flow stability.

The company's project portfolio and revenue generation has historically been concentrated in the state of Gujarat. This regional concentration could expose the Company to economic, cultural, geopolitical and local market risks.

As at the nine months period ended December 31, 2025 and as at end of Fiscals 2025, 2024, and 2023, the company's trade receivables amounted to Rs. 14,406.60 lakhs, Rs. 9,011.20 lakhs, Rs. 6,989.09 lakhs, and Rs. 5,781.65 lakhs, respectively, out of which Rs. 1,126.02 lakhs, Rs. 861.99 lakhs, Rs. 1,367.77 lakhs, and Rs. 487.46 lakhs, aggregating to 7.82%, 9.57%, 19.57%, and 8.43%, respectively, of its total trade receivables (excluding expected credit loss allowance) was outstanding for a period exceeding six months from their respective due dates of payments. The company may not be able to collect receivables due from its customers, in a timely manner, or at all, which may adversely affect its business, financial condition, results of operations and cash flows.

The company's Promoters and members of Promoter Group will continue to retain a majority shareholding in the Company after the Offer, which will allow them to exercise significant influence over the company.

The company's business typically requires significant amounts of working capital and historically, the company's business growth has been dependent on high working capital requirements. The company's working capital as a percentage of (i) total assets was 62.42%, 56.64%,55.05%, and 53.65% as at the nine months period ended December 31, 2025 and as at Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively, and (ii) revenue was 54.58%, 30.44%, 35.50%, and 46.92% as at the nine months period ended December 31, 2025 and Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively, and the company's working capital turnover ratio in nine months period ended December 31, 2025 and Fiscal 2025, Fiscal 2024, and Fiscal 2023 was 1.83, 3.29, 2.82, and 2.13, respectively. If the company experience insufficient cash flows or are unable to access suitable financing to meet working capital requirements and loan repayment obligations, the company's business, financial condition and results of operations could be adversely affected.

The company's business is primarily dependent on tenders from public sector undertakings, which account for approximately 83.74%, 84.21%, 87.48% and 65.77% of its Order Book for the nine months period ended December 31, 2025 and Fiscals 2025, 2024 and 2023, respectively. However, delays or a lack of tenders from public sector undertakings, along with adverse changes in government policies, could materially impact the company's business through contract foreclosures, terminations, restructurings, or renegotiations, affecting its operations and financial performance.

The company has Order Book of Rs. 74,460.27 lakhs as on December 31, 2025. However, the company's Order Book may not be representative of its future results, as projects included in our Order Book particularly for the projects where we are the lowest bidder, may be cancelled, modified, or delayed beyond the company's control, leading to significant deviations from estimated income and adversely affecting its business, reputation, financial condition, and future prospects.

The company is dependent on the company's top ten customers who contribute to more than 97.65%, 95.68%, 97.66% and 96.76% of its revenue from operations for the nine months period ended December 31, 2025 and in Fiscals 2025, 2024 and 2023, respectively and the loss of any of these customers or a significant reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.

The majority of the company's Order Book and its revenues are from the transmission lines sector. Significant social, political, or economic changes in this sector could adversely affect its business, results of operations, financial condition, and cash flows.

The company has experienced negative net cash flow from operating, investing and financing activities in the past years and may continue to do so in future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.