Om Power Transmission Limited 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 the company's business, potentially affecting its financial condition, operational results, growth prospects, and cash flow stability.

As at end of Fiscals 2025, 2024, and 2023, our trade receivables amounted to Rs. 9,011.20 lakhs, 6,989.09 lakhs, and Rs. 5,781.65 lakhs, respectively, out of which Rs.861.99 lakhs, Rs. 1367.77 lakhs, and Rs. 487.46 lakhs, aggregating to 9.57%, 19.57%, and 8.43%, respectively, of the company's total trade receivables (excluding expected credit loss allowance) was outstanding for a period exceeding six months from their respective due dates of payments. We may not be able to collect receivables due from its customers, in a timely manner, or at all, which may adversely affect the company's business, financial condition, results of operations and cash flows.

The company's business is primarily dependent on tenders from public sector undertakings, which account for approximately 84.21%, 87.48% and 65.77% of its Order Book for the 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. 77,619.35 lakhs as on August 31, 2025. However, the company's Order Book may not be representative of its future results, as projects included in the company's Order Book particularly for the projects where the company is 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 dependents on the company's top ten customers who contribute to more than 95.68%, 97.66% and 96.76% of its revenue from operations 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 the company's business, results of operations and financial condition.

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

The company has entered into, and will continue to enter into, related-party transactions which may potentially involve conflicts of interest.

Bidding for a tender involves various activities such as detailed project study and cost estimations. Inability to accurately estimate the cost may lead to a reduction in the expected rate of return and profitability estimates.

The company's actual cost incurred in completing a project may vary substantially from the assumptions underlying the company's bid. The company may be unable to recover all or some of the additional expenses incurred, which could adversely affect its financial condition, results of operation and cash flows.

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.